Could NFTs be legitimate profit generators for businesses?
NOTOn-fungible tokens (NFTs) are currently all the rage among large groups of retail investors. While these investments are inherently speculative, companies across all industries are increasingly recognizing the appeal that NFTs could have in fueling the growth of their respective customers. In this segment of Backstage Pass, recorded on December 3, Fool contributors Toby Bordelon, Jose Najarro and Rachel Warren discuss the NFT market and its potential role in the future of businesses.
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Toby Bordelon: What kind of NFT do you have, Jose?
José Najarro: It’s weird to say one of those projects I’m in. What’s weird is these NFTs, most of them just seem like digital collectibles, but they have a few projects behind them. It is more like a membership to an extent and if you have joined this membership you get some benefits. One of the projects I bought a few NFTs for is called Uni Unicorns. Some of the artists there are behind artists who have worked with like some of the big game studios, like Take-Two Interactive, Ubisoft. Some of the artists who drew them worked for them.
Some of their advisers are advisers to some of the big game companies that I know and follow. I’m like, hey, if an advisor from this company works here, maybe I should take a closer look. It’s probably one of my favorites right now. There have been a lot of things that have been more like rubbish. But again, this is just the overall learning experience that comes with it.
Bordeaux: Cool. Thank you.
Rachel Warren: Yeah. Something I found really interesting about this, from what you were saying, Jose, is that it turned into a side activity for a lot of people, like talking about self-employment and starting your own. online business.
I remember, I think it was the summer I was reading about how people make NFTs, and some people were making a pretty big amount of money from selling their NFTs and it turns into a whole other kind of online business that someone can start. I think this is just talking about a really interesting digital age that we live in, where it can be someone’s job where you create digital assets for a living.
Najarro: There’s this trend that I’ve seen online that people who might not be tech-savvy but might have some form of artistic creativity behind them, there’s this person starting to draw. on your sneakers your NFT that you own, and they charge around $ 200, $ 300 per sneaker.
Warren: Oh my God.
Najarro: So they make a lot of money drawing because people just want to show off their NFTs as much as possible. There is so much imagination that you can use to create some form of sideways turmoil in this market.
Bordeaux: Fascinating yes. I’m like you, Jose, I think crypto is definitely here to stay, I don’t think it’s going anywhere. I think it has some very practical uses, especially you mentioned smart contracts, that sort of thing. You can see some obvious uses, I think, in real estate. It will replace the old ledgers and recording systems that we have with blockchain-like technology that allows orders or packages to be tracked. I am concerned about a collapse in the prices of some of the popular volatile currencies.
I don’t know, we’ll see what happens, but I feel like some of this is pure speculation that is going to end very badly. But I don’t think the content is going to disappear on NFTs.
Personally, looking at the collectibles, the artistic aspect of it, I personally prefer physical art, but I could see myself becoming NFT. I thought about it for a while with NBA Top Shot like, “Oh, that would be cool. Let me get involved in this”, and I haven’t yet. But if I had to do that I would like it to be like legitimate art, like something I really love, not just say an NFT from a random guy’s tweet, don’t know why I would. for that.
But you asked if it was of value, but you could ask the same about any physical work of art. Does it have any value? To the person who created and bought it, of course. Someone else, maybe, maybe not. It could be the same with NFTs. It could be one of those artistic collectibles or almost like baseball cards. Is there a value? Sure. To everybody? No, but it’s okay.
We’ll see where it goes. It’s pretty cool. It’s interesting. I wish I could do something where you buy, say, an original painting and the artist could give you an NFT of that painting as well. It will be an interesting thing for some people. But it’s a fascinating concept and I want to keep following it. I think we’re probably going to crash at some point in all of this just because there is speculation.
Even overheated speculation doesn’t mean there is nothing legitimate underneath. It will eventually, and you look at the dot-com era, a lot of internet companies went extinct and burnt down in the first wave, and yet here we are. You might have endurance even if we have an accident. Keep this in mind for people who are considering investing in this area.
Just because it goes off or it seems to go off doesn’t mean it’s over. Don’t be discouraged if and when this happens. Richard received a comment. Richard O says he thinks some NFTs may be of similar value to Marvel comic book characters bought and owned by Disney.
You have created a digital asset and you own a new image or a storyline or something that maybe that asset that maybe is valuable to Disney, or Netflix, Where Meta, Apple. Lots of possibilities here. You could see that happening.
Interestingly, I saw something, guys. Sony and AMC are teaming up to distribute NFT Spiderman, I think, around 80,000 people or so to people who pre-order tickets for the new movie that will be out in a few weeks. If you haven’t gotten your ticket yet and want to see what the NFT stuff is, maybe if you’re going to see it anyway, buy a ticket, get a free NFT Spiderman.
I don’t know all the details, but take a look and you might see more promotions like this. It could be an interesting way to potentially provide other collectibles for fans of various things.
You could see sports teams doing these things, giving them away. You go to the arena, you get like a towel or a bobblehead now, maybe you get an NFT someday. Here is an NFT of our players. You could easily do it. You can easily see teams doing this. So definitely something to watch out for.
Randi Zuckerberg, former director of market development and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Jose najarro owns Meta Platforms, Inc. and Walt Disney. Rachel Warren owns Apple. Toby Bordelon owns Apple, Netflix and Walt Disney and has the following options: short March 2022 $ 165 puts on Take-Two Interactive. The Motley Fool owns and recommends Apple, Meta Platforms, Inc., Netflix, Take-Two Interactive, and Walt Disney. The Motley Fool recommends Ubisoft Entertainment and the following options: January 2023 long calls at $ 115 on Take-Two Interactive, March 2023 long calls at $ 120 on Apple, and March 2023 short calls at $ 130 on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.