Globally, the value of traded non-fungible tokens (NFTs) is something around 29 billion. In India, NFTs are sold possibly for a few 1000s. And, there was a car company that sold a few of its NFTs between 5,000 and 10,000 rupees. This was cheap as compared to the valuations that were happening in the metaverse.
Prasad Sangameshwaran, editor, ETBrandEquity.com revealed the above as he moderated a fireside chat on ‘Decoding NFTs for marketers’ at the third edition of the ET DigiPlus Conclave. The speakers were Preeti Vyas, chief executive officer and president, Amar Chitra Katha; and Bharat Sethi, founder, Rage Coffee.
As per reliable data points, there were about one lakh people in the metaverse in comparison with the 25 crore population on Facebook and about an equal number who visited YouTube. In the 1990s, many brands used tokenisation or created collectibles to lure consumers, Sethi highlighted.
He said, “You remember those ‘WWF cards’, ‘Hot Wheels Cars’, or ‘Tazos’ that came from chip brands? In 100 years from now, the Leonardo da Vinci’s of the world would possibly exist online.” Vyas added, “Increasingly, we are going to see it move from collectability to utility.”
“But, do these NFTs justify their valuations or is it just going to go bust?,” questioned Sangameshwaran. “When Cryptocurrencies came in about 10 years back, many people thought that this was going to go bust,” said Sethi. So many people became multimillionaires and billionaires, but I also see people losing their money when they are building asset classes with the NFTs.”
Given the kind of confidentiality that existed behind the blockchain, it was said that a lot of ‘insider trading’ was happening. This was not the doing of the brands but of the individuals who wanted to inflate the NFTs’ value. Sangameshwaran asked, “Are brands rushing in to occupy the space of NFTs because they are worried that somebody else might take their space?” Vyas said, “Metaverse is the next frontier and every company is going to need an NFT strategy. Adidas collaborated with Bored Ape Yacht Club and that allowed their NFT to sell at huge amounts. And, it got sold in a couple of minutes.You have to collaborate with the right partners to allow your brand to be that visible.”
“Every brand, no matter how small, owns content,” Vyas said. April marks comic character Suppandi’s birthday and Amar Chitra Katha will launch its first NFT highlighting the different avatars of the character.
Sethi explained that one should know the value of their NFT because the value of it is what one can sell it for. “Earlier digital was 10 per cent of the marketing spend. Now it has become 80 per cent for small brands. NFTs will start taking over that space as well,” Vyas signed off.