Recent data surrounding NFTs show that the buzzword is likely fading out. Coming off of their hottest year yet in 2021, NFT sales volumes plummeted nearly 50% in the first quarter this year with resale profit volume down 3%, according to a quarterly report by NonFungible, which tracks NFTs. Even the prices of top-selling NFTs have slipped.
Depending on who you ask, NFTs are noted as either innovative and expansive or a failing asset. Many critics have stated opinions that are not so favorable such as,
“This is like buying a deed for land on the moon. It doesn’t have value in the real world.”
Because consumers have such varying opinions on this matter, it seems understandable that there should be some new considerations in the marketing department. When the hype is over, it could be beneficial to change up the strategy that’s being used to market the product or service. This came idea may start applying to NFTs.
In fact, there are some companies that are rolling out ‘NFTs’…without calling them that. Reddit, for example, recently released NFTs, calling them “block-chain backed collectible avatars.” They started off by handing some out free to its most die-hard users and making them available for purchase by others.
As I’m sure you can imagine, this decision didn’t come without immediate backlash from some Reddit users and non-users. Comments have been made regarding what the use of blockchain energy means for the environment, among other things.
However, despite critics vocalizing their thoughts, the concept itself has carried on.
The controversy is warranted, with some of the problems likely being that NFTs entered into the mainstream so quickly. With celebrity endorsements and over-hyped products leaving consumers victim to scams, it’s easy to see that the mention of NFTs can elicit some eye rolls.
Will they stick around for the long haul? Maybe with the evident changes coming, we’ll see them thrive with a rebrand.