How NFTs are transforming the art world
NFTs have taken the creative world by storm. They are changing the way artists and galleries authenticate original artwork. These tokens came into the limelight in March 2021 when a digital artwork by Mike Winkelmann, aka Beeple, sold for a record amount. $69.3 million at a Christie’s online auction. Not only did it become the third most expensive piece of art ever sold by a live artist, but it also became the most expensive digital item ever sold as NFT.
Even the Bored Ape Yacht Club (BAYC), a popular collection of 10,000 individual bored monkeys produced by Yuga Labs, gave the NFT era a boost by providing more than $1 billion in total sales. Utility and community have been the main aspects driving these massive NFT sales, thanks to the blockchain technology behind these tokens. NFTs are already changing the way people interact with art, and with many more developments to come, the industry will explode, fueling mass adoption.
Now the market is gearing up to let the big players in the hospitality industry jump in as well. Hotels like Ritz, Hilton, Waldorf are now involved in an NFT drop called Last Hopiumwhere it will benefit holders in the real world.
Utility NFTs: The Next Big Thing in the Market?
Hundreds of brands and celebrities have launched their NFT collections in recent months, with varying degrees of success. NBA Top Shot sold $500 million in NBA history, Elon Musk was paid $1 million for its NFT track, Formula One sold digital vehicle collectibles and Taco Bell’s collection, all of which have given NFTs a mainstream push.
Based on the above comparisons, we can confidently conclude that reputation has played an important role in driving these sales. Elon Musk was promised $1 million for being a celebrity, and the basketball video would be less valuable if they weren’t formally sponsored by the NBA. Scarcity also played a role, but the main missing element was usability. No one has purchased these NFTs for a specific use. In addition, these NFTs were not suitable for large use cases that would greatly benefit buyers.
However, there is now an uptrend that makes NFTs useful in several ways. This trend towards extra usability introduces a new type of value proposition for NFTs, in addition to scarcity and collectability. Many projects are currently developing utility NFTs that are packed with real use cases. One of these is Habtoor’s Last Hopium NFT project. It is a unique collection of 10,000 NFTs with real-world applications and features aimed at rewarding the holders of the NFTs. They get offers and discounts on the renowned Habtoor hotels from around the world by owning only the Last Hopium NFTs.
NFTs and hotels
NFTs have evolved beyond ordinary JPEGs and digital art. The technology is now being used for real-world applications. Projects like Last Hopium sell their NFTs, giving holders of their assets direct and exclusive access to benefits at hotels such as the Ritz, Hilton and Waldorf.
There is a clear trend for big names and companies to become more familiar with crypto and the NFT space. People have just started scraping the surface of NFT’s utilitarian utility. With more developments and innovations in the crypto realm, we would witness many utilities living with NFTs. It is reasonable to expect that more ideas and projects will emerge in the future, giving NFTs even more opportunities to become a part of our lives.