At GCG we use data to drive decisions for our clients. It is important to understand trends and to be ahead of the curve. Breakout data for NFTs suggest an acceleration of interest. This was amplified earlier this year with the Beeple 70 million dollar auction of his artwork at Christie’s. Everyone thought that this was a way to make quick money or cryptocurrency selling art NFTs. Several things need to be understood about the Beeple sale, 1. The planning was long-term. 2. His community was peaking. 3. His catalog of works was in order. Beeple was no overnight sensation, he had quality works that had an audience, were in-demand, had a perceived value, he is an innovator.
Investors are looking at NFTs and cryptocurrency as their options for putting their money to work are tightening. The stock market is high, the return on bonds is low, cash costs them, and real estate is overpriced. Investment in art has in the past been a go-to for investors as it also adds a cache of ownership. The intrigue with NFTs is high because of the new medium, that attracts a global marketplace, they are tradable, traceable, and what can be offered via smart contracts opens up a world of possibilities. Analysts see the early adopters starting to come into the marketplace.
We are still very early in the development of the NFT space but the data suggests that the marketplace is evolving fast. We are in the transition phase from Innovators to early adopters. Like those who got in on the internet space in the mid-90s, this is when to position yourself to capitalize on the opportunity. Look at the trend line for interest in NFTs, these are the early adopters driving this interest. The transactional functionality is being simplified and the comfort level with cryptocurrencies like Bitcoin and Ethereum is growing.
We are also seeing the entrance of the aggregators on the tech side, these companies are investing millions in technology in advance of the market growth. This is a very good sign that they are also seeing data that encourages them to take the long view. This is the time to establish a strategy that puts you on the crest of the wave as a brand, artist, or catalog owner.
All the data is pointing to a breakout year for the NFT world with major sports organizations aligning themselves along with NBA Top Shots as digital collectibles. Music and art worlds will be transformed in the way they do business, and brands will leverage the NFT as a tool for growth.
GCG develops strategies and positions our client’s offerings in the NFT marketplace. We are marketing executives with experience leading small and enterprise businesses at all stages of marketing maturity to help you get closer to meeting and exceeding your goals.