The Game of NFT: Why People Buy it
You are wrong, If you think that “One of the obvious benefits of buying art is it lets you financially support artists you like. Buying an NFT also usually gets you some basic usage rights, like being able to post the image online or set it as your profile picture”.
Now, you are wondering Why people buy NFTs if this is wrong, WHY do they spend millions to buy NFTs.
On the Opensea platform (World’s largest NFTs marketplace), you can see millions of NFTs, but Why do people buy only a few NFTs?
Why do some NFTs sell for millions of dollars and some not?
Many people buy and sell it for making money, but why do they choose only a few NFTs to buy.
So all the answers to all these questions we can find in this article. So, read it carefully and I will ensure to write all technical information in simple words.
Every individual needs to learn NFTs because crypto tokens are good Concepts and maybe it can become the future.
Recommend: If you don't have knowledge about NFTs then you can read a complete guide on NFTs.
Understand the Simple Math of Buying or Selling
The first rule to running a profitable business is “Understand the Demand”. As we know that a product or service will buy customers because it solves the problem of customers. When we solve a problem it generally creates a demand for the product.
The Price of the product or service depends on “Demand” and “Supply”.
If demand is high and supply is limited then the price will go up. And if demand is low and supply is high then the price will go down.
The motivation factor to buy a product or service includes both necessity and convenience along with security, FOMO, identity and belonging, price, peer recommendations, obligation, fear, greed, and happiness.
The business owner can also create demand for their product by marketing and different techniques.
Now if you understand it carefully now you need to understand the game of NFTs.
Why People Buy NFTs
On the Opensea marketplace, you can see millions of NFTs and their owners. Each owner creates demand for their NFTs with a different strategy.
Bored Ape Yacht Club: This is a collection of 10,000 unique Bored Ape NFTs — unique digital collectibles living on the Ethereum blockchain.
To improve the value of their NFTs they do marketing, create demand, give rewards, and organize Yacht parties.
At the yacht parties, lots of big influencers, celebrities, and creators came that improve the demand of the party. And their NFTs are the entry pass to access this party.
So, here they create demand for their NFTs that indirectly helps to improve the price of NFTs.
Also, one more important reason for buying an NFTs is “high volume”.
For example, You can relate NFTs to the stock market. If you want to sell a share of the company and you see no one wants to buy this company’s share then what happened.
The price of the share dropped and you cant sell it.
In another case, if you want to sell a share of the company and the volume of buyers is higher than definitely, you can sell it at a high price. Because buyers are available to buy companies’ shares at a high price.
Lets look at another example of Azuki
Azuki: Azuki starts with a collection of 10,000 avatars that give you membership access to The Garden: a corner of the internet where artists, builders, and web3 enthusiasts meet to create a decentralized future. Azuki holders receive access to exclusive drops, experiences, and more.
To improve their brand they apply strong marketing techniques, They also provide a mindmap about their future.
On that page, they include vision & value, metaverse, seedling, bridge, and physical world. Also, their NFTs are mostly liked by the people.
If you don't understand and want more examples like this then comment below.
Final words
Now if you have any questions related to this article then you can easily ask. If this article gives some interesting knowledge then do 10 claps for me.
