Our Company Tried to Find a Replacement for "NFTs"
As the world becomes increasingly digitized, there has been a significant shift in the way we view and understand digital assets. One of the most popular trends in recent years has been the rise of NFTs, or non-fungible tokens. However, as we have pointed out before, the term “NFT” has become associated with negative connotations due to the boom and subsequent scams that occurred in the past couple of years.
To address this issue, our company underwent a contest to find a replacement phrase for the term "NFT.” We wanted to specifically find a replacement for the term “physical-backed digital collectible,” since that’s what excites us. There were many potential replacements, including "e-Receipt," "Crypto Collectible" and "Tokenized Collectible."
Here’s a subset of the list, if you’re interested in seeing more examples:
- CC = "Connected Collectible"
- CC = "Crypto Collectible"
- CT = "Collectible Token"
- DC = "Digital Collectibles"
- DM = "Digital Memorabilia"
- DOR = "Digital Ownership Receipt"
- DT = "Distinctive Token"
- DT = "Distinctive Tokens"
- DT = "Digital Token"
- DV = "Digital Voucher"
- ER = "e-Receipt"
- IT = "Immutable Tokens"
- OC = "Ownership Certificate"
- OKT = "One-of-a-Kind Token"
- OT = Ownership Token
- PBC or "Physical-Backed Collectibles;"
- PC = "Paired Collectible"
- TC = "Tokenized Collectible"
- UDI = "Unique Digital Item"
- UT = "Unique Token"
As you can see, it’s not easy! Some of these submissions are clunkier than others, even if they describe NFTs better. However, ultimately our company decided that the term "NFT" will prevail and that moving forward, it should not be replaced with an alternative.
We believe that "non-fungible token" is the most technically accurate term and is all-encompassing. While there may be people who don't understand NFTs and may dislike the term, we believe that the space will not move away from the most technically accurate term just to appease those who are not yet familiar with the technology and all of its use cases.
NFTs are in the midst of undergoing a huge rebrand via utility, and brands are catching on. We have begun to see NFT projects offer more layers of utility than ever, with 64% of NFTs found to have two or more utilities. Collections with multiple utilities tend to trade at a faster rate or at higher prices than collections with only one utility. Strong online communities are the chief driving force of a successful NFT project. Regulation permitting, 2023 is going to be the year of NFTs from overpriced JPEGs to utilitarian NFTs, which will support mainstream adoption more widely, delighting both brands and end-consumers alike.
This decision to stick with the term "NFT" is a wise one. The term accurately describes what an NFT is and encompasses all of the different types of NFTs that exist, not just digital collectibles. Additionally, as more people become familiar with NFTs as a technology, the negative stigma surrounding the name will likely dissipate. Anyway, this education gap is where Dibbs aims to come in and educate the public about this nascent industry.
Overall, I’m glad I managed this contest with the support of senior leadership, and encouraged Dibbs employees to think outside of the box. It was heartening to see my coworkers collectively working to address issues in the industry and attempting to find ways to improve it. While the negative stigma surrounding NFTs may have initially caused some hesitation, our company's decision to stick with the most accurate and all-encompassing term will ultimately benefit the industry in the long run.