Guitars, limited run artwork, and iconic memorabilia; all of these items can become tokenized NFTs.
NFTs are an integral part of the internet's and commerce’s future, and organizations of all sizes are starting to take notice. Many have dipped their toes into the digital waters with lines of NFT artwork, but there are other options that can have a greater impact on fans. NFT tokenization, specifically, is a way for anyone to leverage assets they already own as digital collectibles. But what does NFT tokenization mean, and where should you start?
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What Is NFT Tokenization?
NFT tokenization is the process of minting and selling an NFT asset, which could be a rare guitar, jersey, artwork, or anything else. Once the asset has been minted as an NFT, users buy and sell it on a marketplace in much the same way as they would buy any other type of memorabilia. The owner can then have the physical item shipped to them, should they so choose.
The primary appeal of NFTs, and tokenized NFTs, hinges on how NFTs are applied to the metaverse. In that hypothetical 3D world, tokenized NFTs could become decorations for a virtual home, apparel, or used in other ways. Imagine, for instance, being able to drive around in a version of the Batmobile from Batman (1989) simply by owning a tokenized NFT. Essentially, anyone that owns one of the NFTs would be able to access the full Batmobile in a virtual world.
Tokenized NFT assets are liquid, and because their markets never close, they benefit from 24/7 transactions. The market remaining perpetually open is particularly important, as NFT creators receive commissions whenever one of their NFTs is sold, which equates to higher revenue from each asset. NFTs are also released globally — valuable market access that gives organizations more opportunities to experiment.
The Business Benefits of NFT Tokenization
Through tokenization, more fans have the opportunity to own an item that they see as valuable, or part of a collection based on something they love. For instance, you could tokenize a set of commemorative pins and sell each one as an asset-backed NFT. Organizations can leverage this concept to put collector’s items in the hands of more fans while simultaneously driving revenue.
NFTs are finding a solid footing in the market, but brands are still etching out the broader use cases for blockchain tokenization. On the business side, NFTs are an incredibly liquid asset, and tokens have the potential to rise in value over time, thus increasing the value of the item that they represent. It’s unlikely that an individual will ever own all of the tokens for an NFT at once — either due to price or demand — which means that a single asset can continue to make money over time.
NFT creator fees lead to perpetual revenue each time an NFT you create is sold. That means that you’ll still benefit from secondary market sales, so it’s worthwhile to create NFT collections that encourage frequent trading. Further, NFTs aren’t restricted by region, so every time you create and release a collection, you’re tapping into the power of the global market.
Together, these benefits make NFTs a potentially potent revenue stream for any organization. But to maximize your effectiveness in the space, you’ll want to stay in the know about the industry and how it’s changing. Luckily, Dibbs has created a business newsletter that can keep you up to date. Partner with Dibbs today for all the latest.
Which Items Are Good Fits for NFT Tokenization?
The options for tokenization are endless, and no upper limit has been found quite yet. Any physical or intellectual asset has the potential to become an NFT, be it a guitar signed by AC/DC’s Angus Young or a collection of Sheldon’s shirts from The Big Bang Theory. Even a building could become a tokenized NFT.
A brand could also release a collection of items that are more easily traded on a secondary market. For instance, you could create a line of artwork based on an IP that you own, which traders could then buy and sell with each other. This allows your organization to sell NFTs that are especially liquid.
So far, NFTs have primarily been used as a way to sell such digital artwork. But larger brands are starting to introduce new assets to the scene, providing a better framework for marrying physical goods with digital counterparts. Nike’s RTFKT partnership is a prime example of how organizations are using NFTs in new ways. RTFKT NFT owners can redeem a pair of physical shoes that match their NFT’s digital design, giving them multiple levels of ownership.
How to Get Started With NFT Tokenization
Organizations that want to dip their toes into NFT tokenization first need to identify the assets worth tokenizing. What stirs up the strongest emotions in your audience? Is it a specific piece of memorabilia from an iconic moment in your organization's history? Perhaps your fans have latched onto a particular prop, like Doctor Who’s Tardis or Darth Vader’s lightsaber. For your tokenized NFT to carry weight, it needs to stir an emotional response in your fans. You can also tokenize a line of your products or an entire collection drop, which makes it easier for fans to trade them in a secondary market.
It helps to have a partner with experience on hand to guide you through the strange and exciting new world of tokenizing NFTs. Dibbs is here to help. With a comprehensive solution for tokenization-as-a-service, Dibbs is partnering with IP owners, sports teams, bands, movie studios, major collectors, and other organizations to bring their most iconic assets to life as digital collectibles. Ready to take your products and assets to the next level? Partner with Dibbs.