How young digital creators are making profits with NFT

The market for Non-fungible Tokens (NFTs) is booming and amidst this frenzy, choosing the right NFT is the key to desirable returns on your investment. Millions of content creators are reaping the benefits of this digital renaissance and marching towards the creation of a creator’s economy. This transformation is phenomenal and will change the skyline of the world economy in the forthcoming years. A recent report suggests that the Indian digital content canvas has grown significantly of late and is expected to cross $29 billion by the end of 2023.

BLOCKCHAIN-BASED ECONOMIES

Crypto experts believe that the blockchain-backed economies and NFTs will act as a catalyst in the growth of the digital content industry across the globe. The NFTs are transparent, easy to use and come with the capacity to reach a wider set of audiences. These digital tokens establish ownership, offer opportunities to earn maximum revenue, and also provide creators with a chance to earn royalties. NFTs are unique and can be easily sold on blockchain-based marketplaces. NFTs can be easily transacted and interchanged among users and creators can earn a good sum of money by selling their creations.

CREATOR’S ECONOMY AND NFTs

Under the NFTs canopy, an artist can work independently and get access to a larger global digital market even without needing the help of intermediaries. Content creators are participating in the creation of NFTs and this has opened newer avenues for several young creators in the digital arena. Multiple advantages of the NFTs have created a spree amongst the content creators.

INSPECT AND BUY

Always reconfirm the authenticity of an NFT before buying it. The digital space is populated by fraudsters who want to dupe the buyers with duplicate products. Hence, it’s better to go with the simpler specimen of the product rather than the collections of NFTs. As a creator, one must understand the creative value of the product that they want to convert into an NFT — the more unique the NFT, the higher price it fetches in the virtual market.

BE SURE OF THE SELLER

Verify the identity of a seller from different platforms such as Open Sea, Rarible, Binance NFT, etc. Most authentic sellers carry a blue tick although in some rare cases, they might not feature this characteristic. Creators often promote and sell multiple copies of the same product by adding some standalone features to it. Such a situation entails that the creator must induct them into the blockchain and decide the total number of NFT copies they want to put out for sale. The only way to authenticate an NFT is to verify the contract address. Authentic NFT collections will originate from a single contract address belonging to the real author, which makes it much easier to know who is the creator of these NFTs.

SELECT THE MARKET CAREFULLY

As a creator, one must be clear about the marketplace where they want to sell their product. To expedite the entire process one can easily create an account on open platforms such as OpenSea and Rarible and wait for the approval from some more orthodox platforms such as Async Art, Foundations, and Zora where one should prove their creative potential before selling their creativity. Platforms such as OpenSea charge a transaction amount from the seller while platforms like Rarible charge fees from both seller and the buyer.

PRICE IT RIGHT

The value of the NFT is proportional to its rarity and uniqueness. While pricing digital creation, one must keep in mind this principle of exclusivity. In other words, creators must strive to make the creation distinctive and oneof-its-kind to fetch higher prices. The instructions put out by the marketplace can also come in handy while deciding the price of the NFT. Also, it’s been suggested that new creators should start from the lower prices to gain a solid foothold in the NFT market.

PROMOTE TO SELL

Promotion of the NFTs helps the creators and sellers. The experts suggest that the creators must promote the link of the NFT on social media platforms to woo the buyers. The endorsement by some well-known creative and marketing agencies can help but then these methods have financial implications for creators.

CONCLUSION

NFTs offer lucrative investment opportunities to investors and if you invest in the category keeping in mind fundamental principles of investing, these digital assets can provide you attractive returns on your investment.

(Tushar Gandotra is Founder and CEO, FiEx — a Singapore-based entity in the digital asset and Web3 domain)