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Ways NFTs Can Reinvent Your Small Business

Inc. | Tor Constantino | Oct 7, 2021

non fungible tokens - Ways NFTs Can Reinvent Your Small BusinessNFT growth is continuing to skyrocket

According to the website's Non-Fungible Tokens Quarterly Report: Q2 2021 Second Quarter 2021 Report, that three-month window was a record breaker for the NFT industry. The nonfungible.com report shows that in Q1 2021, the total volume traded exceeded $500 million. During Q2, it soared an additional 40 percent to more than $700 million.

The second quarter also saw a new record in the number of active wallets (more than 175,000), which shows a strong growth rate of interest. Additionally, the number of buyers and sellers is still increasing. Specifically, the number of buyers (over 38 percent) is increasing faster than the number of sellers (over 25 percent), which means that NFTs have a greater rate of uptake than attrition.

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Two of the biggest reasons for the growing adoption and increased sales of NFTs are that humans like to collect things and NFTs are programmed to be scarce. Basic economic theory states that scarcity of nearly anything in demand bids up its price.

Additional attributes of NFTs are:

  • Digital permanence: They last as long as the blockchain they're built on continues to exist.
  • Cannot be counterfeited: Anyone can confirm authenticity by checking the blockchain.
  • Provable ownership: Which can be transferred if the NFT is programmed for resale.

Boost your local business with NFTs

All of this suggests an opportunity for small businesses to take advantage of the current NFT mania. Here are five ways that you can use NFT technology to grow your business and retain customers.

See:  NFT Boom Will Surely Lead to Questions Over Copyright, Control and Plagiarism

  1. Counterfeit-proof issuance of single-use promotional tools: coupons, promotional discounts, event tickets, BOGO deals, etc. Blockchain codes or QR codes serve as uncopyable, tamper-proof access/discount assets with a wide array of use cases.
  2. Establishing a customer loyalty program: Consider a digital NFT loyalty card. Once customers sign up for it, they download it to their mobile device. Every time they visit your business, they scan the loyalty NFT code to accrue loyalty points. At certain thresholds, you can push rewards, discounts, or blockchain tokens to be used in store.
  3. Cause-related marketing and charity support: NFTs were used to raise money to help empower Afghan women in the aftermath of the recent U.S. exodus. A similar program could be duplicated at the neighborhood, town, city, or state level to spur geographic-affinity marketing or support local charities.

NCFA Jan 2018 resize - Ways NFTs Can Reinvent Your Small Business The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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