People are interested in learning more about NFTs, but the topic can be difficult to understand.
Even if you’re familiar with the basics of NFTs, it can be difficult to keep up with all of the new developments and changes in the industry.
Simba’s Guide to NFTs is here to make things easy for you. We’ll break down all of the complex concepts and explain them in simple terms so that you can stay up-to-date on the latest news and trends in this exciting industry.
As marketers, you will be expected to assist digital artists, musicians, virtual real estate owners and many more in promoting their NFT projects, whether it’s music, work, or the Next Bored Ape collection!
NFTs have exploded in popularity over the last few months. If you’re not familiar with NFTs, they are digital assets that are provably unique on the internet.
This article was created to assist you understand NFTs and provide you some inspiration for how to market your next NFT project on the Internet.
What are NFTs?
Why are they all the rage right now?
How do NFTs work?
In this article, we will answer all of your questions about NFTs and provide a comprehensive marketer’s guide to these unique cryptocurrency tokens.
NFTs represent a whole new world of digital asset ownership, and we believe that they have the potential to revolutionize the way we use the internet.
Stay tuned for more information on these exciting tokens!
What are NFTs?
Non-fungible tokens, or NFTs, are digital assets that are provably unique. They can be used to represent both tangible and intangible items i.e. things that you can touch physically or things that only exist in the digital world. NFTs contain identifying information recorded in smart contracts, which guarantees their uniqueness. Each NFT is entirely different from any other token in existence, and this is what makes them so valuable. NFTs can be used to represent ownership of digital art, in-game items, or even real-world assets like property or land.
Why are NFTs all the rage right now?
NFTs have been gaining a lot of attention lately because they offer a new way to ownership and interact with digital assets. NFTs are the next step in the evolution of cryptocurrency tokens, and they hold a lot of promise for the future. They have already been used to create some amazing projects, such as CryptoKitties, which is the world’s first blockchain-based game that allows users to own and trade virtual cats. NFTs have the potential to change the way we use the internet and interact with digital content.
How do NFTs work?
NFTs are stored on a blockchain, a fancy word for an internet record book, that everyone can see. The blockchain which is a decentralized database is used to track ownership of digital assets i.e. the NFTs. When you buy an NFT, you are actually buying a cryptographically-secure record of ownership that is stored on the blockchain. NFTs can be bought and sold like any other cryptocurrency, and they can also be traded peer-to-peer.
In this article, we have only scratched the surface of what NFTs are and how they work. Stay tuned for more information on these exciting tokens in future articles!
Non-fungible tokens may also be generated on other smart-contract-enabled blockchains with non-fungible token tools and support. Although Ethereum was the first to be widely implemented, the ecosystem is expanding, with blockchains including Solana, NEO, Tezos, EOS, Flow, Secret Network, and TRON supporting NFTs.
Non-fungible tokens and their smart contracts can add detailed information about the owner, like their identity, rich metadata, or secure file links. This makes it possible to immutably prove digital ownership for a wide range of assets. This could be a big step forward for the increasingly digital world we live in.
Blockchain technology is still being developed. It can be difficult to create decentralized applications and platforms for the management and creation of non-fungible tokens. There is also the challenge of creating a standard. Blockchain development is fragmented, many developers are working on their own projects. To be successful there may need to be unified protocols and interoperability.
Famous NFT Projects?
Every marketer’s wet dream is to have his or her firm in the limelight. Some NFT projects, describing them in terms of Simba’s Content Matrix have been “shooting stars”, receiving thousands of media mentions.
What can you do with CryptoPunks? They’re mostly used for “flexing” – demonstrating membership in a secret society via the use of them as avatars on social media platforms. Indeed, the fad has prompted Twitter to develop plans for verifying NFT avatars, to avoid people passing off saved CryptoPunk images as real. And
CryptoKitties is the world’s first blockchain-based game that allows users to own and trade virtual cats. NFTs have also been used to create digital art, in-game items, and even real-world assets like property or land. There are a number of exciting NFT projects in the works, and it will be interesting to see how they develop over time.
Bored Ape Yacht Club
Bored Ape Yacht Club is a collection of NFT avatars, like CryptoPunks, and it’s also made up of disinterested-looking apes. And, like CryptoPunks, there are 10,000 of them; each one has a different set of features; and a thriving community has developed around them.
Finally, by owning a Bored Ape NFT, you may gain access to additional NFTs, such as the Bored Ape Kennel Club (a series of dog NFTs) and the Mutant Ape Yacht Club (a collection of strange apes). Consider it a pass to an exclusive club that has advantages for members.
With a growing number of celebrities purchasing Bored Apes in the past year—including Eminem, Snoop Dogg, and Stephen Curry—the elite club has gotten more exclusive. Yuga Labs, the creator of Bored Ape Yacht Club, has secured Hollywood representation with an eye on expanding the brand into film, TV, and other entertainment
Non-fungible tokens have a range of purposes, one of which is to represent digital items in video games. And right now, the most popular NFT game is Axie Infinity, which has had trading volumes of over $2.5 billion this year.
You’ll be collecting cute monsters known as Axies, battling them against one another in competitive battles, and breeding them to create new Axies in this Pokémon-style game. Players in countries like the Philippines have made a living by breeding and trading Axies thanks to the game’s “play to earn” system.Individual Axies, on the other hand, are for sale for hundreds of dollars, making putting a team together to begin costly.
NFTs and DEFI (decentralized finance), The future of NFTs
The world of NFTs is still in its early stages, but there is a lot of excitement about the potential applications of these tokens. One area where NFTs could see widespread use is in the world of decentralized finance, or DEFI.
Decentralized finance (DeFi) is a term used to describe financial applications that run on a blockchain. These applications include things like lending, borrowing, insurance, and asset management. DeFi applications are attractive because they are trustless and decentralized. This means that there is no need for a third party to hold or manage users’ funds.
DEFI applications have seen rapid growth in recent years, with the total value of all loans issued on DeFi platforms reaching over $700 million by the end of 2018. NFTs could play a big role in the future of DeFi, as they could be used to represent a wide range of assets.
The future of NFTs
The broader market for non-fungible tokens is presently characterized by artwork, gaming, and crypto collectibles. Recognizable companies are increasingly licensing their material to NFTs, including fantasy soccer game Sorare that has over 100 football teams on its platform, while the Smurfs, Minecraft, and the BBC’s Doctor Who have all been converted
Non-fungible tokens may be used to represent in-game items such as skins, potentially allowing them to be transferred to new games or traded with other gamers.
However, their potential is far more extensive; conceivable uses include copyright and intellectual property rights, ticketing, and the trade and exchange of video games, music, and films. In September 2021, Zero Contact, a thriller film, became the first feature-length film to be released as an NFT; Lockdown, a pandemic-themed thriller, soon followed. In October, Tom Brady’s Autograph platform debuted a music vertical with The Weeknd as its inaugural artist.
With NFTs, video game firms have enthusiastically embraced the possibilities and are already experimenting with them. In late 2021, Ubisoft, the publisher of Assassin’s Creed, became the first large gaming business to release in-game NFTs. Many other companies, including Konami, have experimented with NFTs. Many gamers are unconvinced by the technology; following a significant outcry from fans, developer GSC Game World discontinued plans to incorporate in-game NFTs into its game S.T.A.L.K.E.R. 2: Heart of Chernobyl in
NFTs in the Metaverse.
You can’t write an essay about NFTs without first mentioning the Metaverse!
What is the Metaverse?
The Metaverse is a virtual world that allows for the exchange of digital assets. In the Metaverse, NFTs can be used to represent a wide range of assets, including things like property and money.
The Metaverse was first proposed by blockchain pioneer Gavin Wood in his white paper “Ethereum: A Next-Generation Smart Contract and Decentralized Application Platform.”
The Metaverse is still in its early stages, but there is a lot of excitement about its potential. The Metaverse could potentially revolutionize the way we interact with the digital
NFTs are also expected to become a significant component of the metaverse, a permanent, shared virtual world where people may interact as 3D avatars. Companies like Meta (formerly Facebook), Adidas, Nike, and Samsung have all entered the metaverse, with more companies expected to join them next.
The usage of NFTs to represent virtual plots of land and in-game items such as clothes for avatars is already being employed by projects like Decentraland and The Sandbox. Interoperability between NFTs will likely be used in the future, allowing users to exchange virtual things across different metaverse platforms.
Non-fungible tokens have the potential to revolutionize security token creation and the tokenization of both digital and real-world assets. Physical items such as property might be fractionalized or divided in ownership. Even if only tokens representing partial ownership are sold, non-fungible security tokens ensure clear ownership of the asset.
Further application of non-fungible tokens could include certification for qualifications, software licensing, warranties, and even birth and death certificates. The smart contract of a non-fungible token could be used to store the identity of the recipient or owner securely. This would make it easy to access and represent the information. Our digital wallets may eventually store proof of every certificate, license, and asset we own.
How to market an NFT project on the internet?
With the recent hype around NFTs, it’s no surprise that more and more projects are starting to pop up. If you’re thinking about launching an NFT project, it’s important to know how to market it effectively on the internet.
Here are a few tips:
– Make a website and social media accounts for your project. This is where people will go to learn more about what you’re doing.
– Write articles and blog posts about NFTs and your project. This will help educate people about NFTs and what you’re doing.
– Use social media to share updates about your project and engage with followers. This is a great way to build excitement around your project.
How to use Simba’s Five Forces to market NFT projects
Content and consumers make the internet go round!
Peter Drucker, a famous management guru, once said, “The sole purpose of doing business is to create a customer!”
Now, with the internet, the sole purpose of creating Content, is to create demand for your products/service.
Simply said, Simba’s Five Forces is the concept of generating demand for your goods/services i.e NFT projects, by creating Content. It’s an extension of that core idea.
Simba’s five forces is like Porter’s five forces but for anyone trying to sell their products, in this case, NFTs on the internet.
1. Threat of new content i.e. threat of new nft projects coming online.
This force is about how often you should be creating Content to promote your NFT project.
Every other day, another NFT project is making its way onto the internet, in the hope of becoming the next CryptoPunk or Bored Ape Yacht Club.
To get attention on the internet, you either need to be first or clever (and if all else fails, cheat). The cryptopunks and bored apes were the first to market themselves to the general public, and their success sparked a gold rush. Now there are several copy-cat initiatives, resulting in a lot of commotion and attracting a great deal of speculators.
It’s no longer good enough to just set up a website and forget about it – you now have to create Content about your project and broader NFT topics in order to gain attention for your products.
The NFT space is becoming more competitive every day, and to succeed you need to be present on multiple platforms and generate a steady stream of content. Most NFT content is being generated by the hour on Twitter and other community forums.
2. Threat of different Content mediums.
This force is all about choosing the best content medium that gets attention i.e. engages your would be collectors and fans.
All you needed in the beginning was a website to display your NFT project and perhaps share images from the NFT project to raise interest before the airdrop.
Now, you need to invest more heavily into different content mediums or other content formats like memes, short form videos, long form videos, animations, selling the vision and plans of your NFT projects. There is even white papers being written to support NFT projects.
This force is about understanding who you will be competing with for attention on the internet.
First, you will have to deal with direct competition from other similar NFT projects wanting attention just like yours.
It’s good for you to check out how often they publish content, and what content medium is getting the most engagement (attention), as this helps not waste money creating content that will not get any attention.
Indirect competition comes from those getting attention in the NFT space but aren’t promoting NFT projects.
It’s tempting to ignore these young YouTubers in the bedrooms who create videos about ‘how to create an NFT’ or ‘how to flip NFTs’ but their Content is getting attention (views) and yours is NOT!
With Simba’s Five Forces, it’s all about learning from your competition, whether it is direct or not!
4.1 Power of Content Aggregators (i.e. Marketplaces, Discord, Twitter etc) and Content Creators
This is, without a doubt, the second most signi
The second most significant force that determines whether your content will get attention on the internet is what’s called “power of Content aggregators”.
These sites are great for finding information about NFTs. They aggregate all of the latest project updates from around the internet, making them easy to access in one place!.
The fact that they attract a lot of attention on the internet, puts them in a powerful position, as they can, choose at will, via algorithms, which NFT gets attention or not.
In fact the usual business practice for a Content aggregator is to get a lot of traffic, direct that free traffic to the first NFT projects, and then make everyone else pay to be seen on their website!
Marketplaces like Open Sea, Mintable, Rarible, although popular, have become, in the words of Renée Mauborgne and W. Chan Kim, the professors behind, the Blue Ocean Strategy, bloody “Red Oceans” because now competition is intense, and now it’s difficult for new projects to gain attention.
It is even “bloody” worse on Twitter, the noise is just too much.
and what about on Google?
Before the NFT hype train docked onto the Internet station, it was fairly easy for a new NFT project to rank highly in the Google search results, fairly quickly.
Now the search results (known as SERPS) are dominated by big brands and tech websites.
4.2 Power of Content Creators.
You cannot talk about Content Aggregators without talking about Content Creators. They both need each other!
Content creators in the form of celebrities or social media personalities are more influential than ever if ever your NFT project will see the light of the digital coin.
You most likely need to work with someone influential in the NFT space who is not affiliated to other nft projects to be your advocate. This is the strategy that CryptoPunks and Bored Ape Yacht Club have used to stay relevant in the mainstream media.
Also you need some public relations, need something newsworthy about your NFT project. You want to get your NFT projects being talked about by the likes of Mashable, New York Times, TechCrunch etc.
4.3 Power of Internet Users (i.e. would be buyers and collectors).
Collectors, in the form of internet users, hold the keys to your NFT project’s success (clicks). They must be persuaded to believe in your NFT project narrative, which is essentially the vision, mission, and what makes it unique and distinct from other NFT projects.
Even if your NFT project is ‘dope’ or ‘awesome,’ you must have an audience for it, because, without attention, it’s like shouting into space and no one would hear you.
Internet users, especially buyers and collectors of NFTs, can be found in forums on DIscord and Reddit. Using the customer ikigai, identify, the “places” where they hang out and try go market (not spam) those places.