In India, non-fungible token (NFT) platforms are relying on brands to bring in more customers because individual producers aren’t helping them as much as they used to. Artists saw the NFT sector as a new way to make money, while marketers saw it as a way to get and keep customers’ attention.
Prasad Bhat, an artist in Bengaluru whose works are listed as NFTs on platforms like WazirX and OpenC, said that artists are having trouble meeting their needs and are looking for other options.
NFTs are like the virtual version of proprietary services. They are based on blockchain technology. During the cryptocurrency boom of last year, artists and producers used platforms like OpenC instead of the usual ways to show off their work. But the drop in the cryptocurrency market has also hurt the non-cryptocurrency markets.
After the crypto market dropped in May and June, both the number and value of NFT transactions went down. A crypto research company called Chainalysis says that sales of non-fungible tokens (NFTs) hit over $1 billion in June. This is the worst result in the past 12 months.
Dhruv Saxena, chief strategy officer of NFT and gaming company Fantico, says that the early excitement about NFTs was mostly paid for by extra cash. “Stock and cryptocurrency traders were the first people to be interested in NFTs. When stocks and cryptocurrencies started to fall, liquidity went down. Saxena says that individual NFT performers are finding that customers are no longer buying their goods.
Marketers see NFTs as a way to talk to customers in the meantime. Stakeholders say that more companies have started to use NFT collections recently.
For example, in July, Flipkart launched its first NFT platform, which was powered by the UK company Nothing, which makes consumer electronics. With these NFTs, the company hoped to get people to reserve its Nothing Phone 1 smartphone early. Customers knew about upcoming company events, goods, and prizes before anyone else.
Mafatlal Industries, which makes textiles, has also said it wants to build a Metaverse gallery and NFT shop on Comearth, an e-commerce platform for the metaverse that was made by a company in Gurugram called NFTly. Other names include the car company MG and the ticketing company MakeMyTrip, which both introduced NFTs earlier this year and last year using CoinEarth’s NGJN platform.
Praful Chandra, the founder and CEO of CoinEarth, says that more companies are looking at NFTs as a way to connect with customers.
Toshendra Sharma, the CEO and founder of NFTICALLY, said that the drop in the value and number of NFTs has not hurt the company. On the other hand, it has made people more interested. NFTICALLY is currently working with “many companies” and plans to launch more brand-specific NFTs in the near future.
Sharma says that the best way to deal with the slowdown is to keep good KPIs for sales, engagement, and metrics.
NFT companies may do better in a bear market than cryptocurrency exchanges and decentralized finance (DeFi) platforms. Experts say that as new companies join the market, it will mature and gain credibility, which will speed up its growth. Sharma, who offers a software-as-a-service (SaaS) product that lets businesses make their own NFT platforms, says that they pay a membership fee to use NFTIKLY.
Sharma tells that smaller businesses tend to follow larger ones and make more sales, which leads to more growth. A May HubSpot survey found that 39 percent of marketing professionals who use NFTs for brand engagement thought they had the best return. How much all of the equipment they use costs.
Chandra also said that the next stage, which is quickly changing, will be where real engagement will happen by giving NFT holders access to high-quality experiences.
Pedro Herrera, a data analyst at DappRadar, warned that producers who want to sell NFTs at ridiculously high prices are not likely to get any traction right now. He said, “The method is useful for people who want to build assets that are smart and can be programmed.”
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