The Misunderstood Potential of NFTs in the Market

– NFTs are currently misunderstood and their potential is not fully understood by most people.
– The technology for NFTs is still years away from being widely usable due to technological limitations.
– NFTs require three things to take off: creation, distribution, and use, but currently face challenges in distribution and use.Develop an articulable plan that takes into account the current technological limitations and ecosystem of NFTs before considering their use in marketing or branding strategies.NFTs are misunderstood, simply because of the current state of maturity of the market. The vast majority of people talking about them don’t even truly understand their potential and what that timeline looks like. We’re years away due to technological limitations around functional use with the masses. So now LinkedIn is all abuzz about them, but the majority of people that I talk to lack a foundational understanding of what they are, how they can be used, and where the current technology stands. If you’ve followed Bitcoin, which came out back in 2009, it’s still a stored value investment coin. We’re nearly 13 years later and it still can’t really be used in the real world because of the volatility in price. NFTs are being viewed in the same vein with sensationalism over the values that people are buying jpgs for. This is the first step of many because as of right now it’s an MVP of the technology, a proof of concept around ownership. Viewing NFTs as an investment vehicle is dangerous and will put them in the same category as other crypto coins. This misses the bigger picture though, for NFTs to take off, they require three things: Creation, Distribution, and Use. We see the same problems that exist in the entire crypto market currently; creation is doable, distribution still has too much friction, too many wallets, too many exchanges, too many currencies not listed on exchanges, and too many currencies that are worthless. Use, though, is the biggest problem. Other than stored value, the actual use of many coins doesn’t make sense right now. NFTs have a chance to break through the barrier of “USE,” but they are currently also running into a distribution problem due to gas fees. This technological limitation is being worked on, but the market is still early. Until this is cracked and CX is improved across different platforms, the market has nowhere to go. It’s getting a lot of hype and a lot of buzz right now, but there are underlying fundamentals that will prevent it from becoming mainstream. If you’re a brand and you like the space, pay close attention but also have an articulable plan that is aware of technology and the limitations within the ecosystem. #nft #ecommerce #marketing

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