What is NFT?
“Non-fungible” means that it is unique and can’t be replaced with something else. To give you an example- bitcoin, gold, oil,.. is fungible — trade one for another, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.
Here is an Article describing NFT in more detail:
NFTs are a BIG thing today. Here are few examples of huge companies joining the NFT Tsunami wave: CocaCola, McDonalds, Taco Bell, Rayban, NFL, Gucci
What are Utilizy NFTs?
When most people think of non-fungible tokens (NFTs), they think of their value as lying in their being unique — hence “non-fungible.” But now there is a growing movement to make NFTs usable in several different ways. This movement toward added utility creates a different kind of value proposition for NFTs, on top of their scarcity and collectability.
Utility NFTs have clearly outlined intrinsic value beyond their purported scarcity. For example, holding a token could unlock exclusive experiences, early access to products, entry to members-only virtual and IRL events, or dividends.
Example:
Coca-Cola has been experimenting with utility NFTs as a way to connect with consumers. They teamed up with 3D creators at Tafi to auction an NFT loot box. In celebration of International Friendship Day, Coca-Cola recreated one of its iconic vending machines as a “Friendship Box” NFT, revealing several artsy surprises.
The winning bidder’s proceeds go to Special Olympics International, a Coca-Cola partner. Additionally, the winning NFT holder receives a real-life, retro Coca-Cola refrigerator — of course fully stocked with the famous beverage.
Utility NFTs have a natural synergy with the gaming industry. For example, NFTs can represent in-game assets, weapons, or virtual goods that players can purchase and use within a game. Meanwhile, brands can use utility NFTs as a new revenue stream and a creative way to reach consumers.
Example:
Smooth Love Potion- Axie Infinity is a name you’ve probably heard of in blockchain gaming or the crypto world. This is the most popular blockchain game in the Philippines, with young people abandoning their jobs to earn a cool $2k per month.
Every Axie in this game is an NFT character as are the in-game accessories and products. Players can trade Axis for real money on the game’s marketplace and generate profit. Axie Infinity also has a virtual economy and here players use two cryptocurrencies: SLP (or Smooth Love Potion) and AXS (or Axie Infinity Shard). Players also use these coins to purchase Axis, buy land, farms, etc.
What is another usage of Utility NFts:
The most obvious case is the fundraising for non-profit organizations and charities. Selling NFTs can give non-profits access to new sources of funding outside of established channels and help them diversify their revenue-raising efforts. Through the collecting of money connected with each transaction, charities will have a continuous and regular revenue stream. A non-profit organization called “Leyline” raised $60,000 by gathering artists and developers to sell NFTs to help children suffering from cancer get medical supplies.
Recently, Real Nifty announced the launch of “The Ultimate Green NFT”, the first & ultimate green NFT. The proceeds of their sale would go towards reforestation to fund the planting, cultivation, and maintenance of a local forest in one of Brazil’s regions. NFT owners will also own a forest parcel named after them and a 30-year carbon credit (greenhouse gas license).
Farokh, Jenkins the Valet, Crypto Futurist, Jim Dee, puyu.eth, Kathryn Mitchell, Jeff Opdyke, Richard Warepam
What is Non-Utility NFT?
JPEG. Imagine this as just a picture that you buy and the price is decided just with a demand/supply and Hype attached to it.
What is the usage of Non-Utility NFTs?
The artists have an option to sell their pictures online. Besides this use-case probably just Buy, Sell, Trade.
Without Non-Utility NFts there will probably not be any Utility-NFTs. Thanks to that hype that was created with all the influencers and big companies joining the NFTs we were able to push companies that can find real usage in NFT in their businesses.
Unfortunatelly, there is high chance that 95% of all the non-sense JPEGs will drop 99% on their price once the Hype will drop.
We at Swipelux really believe that the only NFTs that do make sense are the Utility NFTs.
This is how the average Non-crypto person is buying NFTs today:
If you are interested in buying NFT, most of the marketplaces do not have any kind of convenient option to buy it in case you do not own any crypto. You have to go to a different exchange, register there, pass KYC, send fiat there buy crypto, create and connect Metamask and then you can come back to the NFT marketplace and buy your NFT.
This is a flow that we have at the Swipelux widget:
This solution is targeting and helping with Mass adoption to crypto-space. Buying NFTs with the Swipelux widget is super easy!
We are fiat on-ramp. We have developed a tool for how to buy the NFTs with fiat using a credit/debit card. We could integrate this widget into any NFT platform, so anyone will be able to buy NFTs directly on the NFTs marketplace using Visa/Mastercard.
Let’s build an amazing future together!
Filip Kollert
Co-founder of Swipelux
