NFTs and crypto social media may seem like two different things. One is a digital token and belongs to the web 3.0 world. While, the latter is a communication and thought sharing platform.
But wait! There is an important relationship between the two. If you view NFT as a product then social media is a great marketing tool to launch your product.
It wouldn't be wrong to say that social media platforms like Twitter support 70%-80% of the NFT's existence. Why is it so?
Imagine you have a very rare NFT collection. Where will you go to talk about it and let people know you have it and it's up for sale?
May be Facebook? Or Instagram? Or Twitter?
In the present day digital world, there is no platform better than social media to market your products, convey your brand story and attract customers.
Be it NFT creators or buyers, everyone prefers social media platforms to either talk about their upcoming NFT releases or brag about the possession of highly expensive NFTs.
There is a reason why the world's largest NFT marketplace gets its major share of traffic from Twitter. Twitter accounts for 70% of the total traffic on OpenSea.
This shows the extent to which #NFT is trending on Twitter.
In this blog, we will analyse the synergy of NFT social media in relation to NFT creators, content creators and buyers. We will also focus on how social media platforms are leveraging the NFT craze to open doors to exciting possibilities.
How NFT Creators & Buyers Are Using Social Media?
The NFT market especially in the art and entertainment category is a community driven market.
Have you ever thought why some NFTs are sold for millions while others are for a few hundred dollars?
It is only because of the strong community support of that particular NFT collection that creates hype in the market. If the hype goes viral in the right direction, more and more people will be willing to own it, even for millions.
And there is no better medium than social media to create hype around any product. The NFT community heavily uses social media channels to express their excitement and views on NFT collections.
NFT creators use social media platforms to market their NFT collections and attract potential buyers. In fact, content creators can now monetize their content on social media by tokenizing them. It's one of the many use cases of NFT social media.
While the NFT buyers use social media to brag about their prized NFT possessions.
NFT Social Media For Content Creators
There are two aspects of NFT social media for content creators.
Tokenising and monetising content
Marketing NFTs
From brands to content creators, influencers and artists, all can use NFT social media to monetize their content or art, thanks to the unique tokenisation benefits of NFTs.
This is the content aspect, where non-fungible tokens backed by blockchain and smart contracts enable content creators to tokenize any type of content. They can then offer their exclusive content as NFT and earn money. The content can be anything from digital art, painting, photo, music, video, meme or even a digital twin of a limited edition physical product.
Now coming to the marketing aspect.
Have you ever bought a product right after watching an influencer using it? Or have you ever explored a product just because everyone on Facebook or Instagram is talking about it?
We all have done it. The social media web is hard to get out of.
NFT creators use their large following to market their products. They upload posts, videos, and reels about their NFT collection and lure in customers. Here are some of the ways creators use social media for marketing:
Create hype and excitement for the NFT collection right from its development phase
Announce new NFT releases
Announce special discounts and offers
Showcase the premium features of their product
Convince customers how their products will benefit them
Enhance customer engagement with their brand
Drive traffic and leads
Build a strongly knitted social community to back your NFT collection
Announce NFT auctions and sales
Social media is a common ground for creators, buyers and NFT enthusiasts to mingle, crypto share and discuss.
NFT Social Media For NFT Collectors
Imagine you have a very rare piece of NFT art, or an exclusive NFT music clip of an upcoming song or any other prized collection. So, will you like to keep it a secret from the world?
Of course, No! You will want to brag about your most valuable possessions to your family and friends.
We are living in an era where people share a post on buying Louis Vuitton luxury bags, Gucci dresses and Jimmy Choo sandals. So, it's natural that when someone spends a fortune on something they will go to lengths to talk about it. So, you want the whole world to know that you possess a highly expensive CryptoPunk NFT or BAYC or Gucci NFT bag.
Another factor is social status. People have been running a race to level up their social status. They want to be included among the elites. Be it an exclusive club or community they want to be a part of something grand and glittery.
NFT quenches the thirst of the people by giving them a way to prove their social status to the world. If you possess a premium NFT worth millions, it will be proof of your high social status.
Moreover, some NFTs like BAYC give access to exclusive clubs. These exclusive clubs have members like Stephen Curry, Mark Cuban, Jimmy Fallon, Eminem and other celebrities. Now, who would not like to be a part of such an elite club?
How does Social Media Influence The Price Of NFTs?
Social media platforms are key players in driving the value of NFTs. even if social media do not enable buying and selling of NFTs, they can scale the price of an NFT to millions.
How did the Disaster Girl meme sell for $500,000? Or guess how Dorsey Tweet bagged $2.9 million?
It's all because of their popularity on social media.
Still confused? Let's make it simpler for you.
NFTs in the art, fashion and entertainment category do not have a price tag.
The price of the NFTs depends on how much the buyer is willing to pay.
It's all about popularity and demand. Your NFT is valuable as long as it's popular, trending and high in demand.
The more popular an NFT is the more its demand in the market rises which simultaneously increases its price.
To sum up, the hype, excitement and virality around an NFT are its major price influencers.
For instance, crypto Logan Paul went viral first on a video sharing platform, Vine. Then he became a successful YouTube influencer with millions of followers. Now two years back, when he launched his own NFT collection, his NFT popularity, demand and prices went crazily high. He sold 1700 NFTs making $1 million in sales in the first hour of the sale. By the end of the day, he made $3.5 million.
How are Social Media Platforms Embracing The NFTs?
Since the early days of MySpace and Facebook, social media has evolved into a central hub for communication, entertainment, and information sharing. Social media platforms today have the potential to work alongside NFTs to create a mutually beneficial relationship, offering multiple benefits to both parties.
Digital tokens can help social media platforms increase engagement, expand their customer base, and generate new revenue streams.
Additionally, NFTs provide social media companies with a way to capture user data and develop targeted services based on it, improving the customer experience while tracking NFT-related activity on the platform.
Social media companies can also offer additional NFT-related services, such as allowing users to create non-fungible tokens within their platforms and enabling trading without third-party exchanges. This provides users with more control over their assets while also generating income for social media companies through fees.
Overall, integrating digital tokens into social media platforms can be a profitable move for both owners and social media companies.
Many social media platforms are experimenting with ways to integrate NFTs into their platforms.
Here are a few examples:
Facebook and Instagram have launched their NFT marketplace, called Facebook Marketplace. The platform allows creators to mint, list, and sell NFTs directly from their Facebook or Instagram accounts.
Twitter has announced its intention to allow users to add NFTs to their profiles, which would enable users to showcase their digital assets to their followers. Twitter is also exploring ways to integrate NFTs into its tip jar feature, which allows users to tip their favourite creators.
TikTok has integrated a marketplace where creators can sell NFTs directly to their fans. TikTok has also partnered with blockchain platform Immutable X to enable seamless NFT transactions.
Reddit has launched its own NFT platform, called Reddit Collections. The platform allows creators to mint and sell NFTs on the platform, with plans to integrate the platform with Reddit's Karma points system.
YouTube has not yet launched its own NFT platform, but the platform is currently experimenting with ways to integrate NFTs into its content creator economy.
Conclusion
Social media platforms are still in the early stages of experimenting with NFTs. There is still much to be explored in terms of how NFTs can be integrated into these platforms.
However, the potential benefits of NFT social media for creators, brands, collectors, fans and the platforms themselves are evident.
Looking to tap into the million-dollar NFT industry?
Contact the experts of the leading NFT development company - Chaincode Consulting. They offer turn-key NFT development solutions to help you digitalize your business and accelerate its growth and revenue generation. how to name a crypto