NFTs have captured the attention of millions worldwide — coupled with all social media platforms — as they have surged over the past couple of months. Brands, creators, investors, and artists have flocked the market to be part of this fast-growing industry. In the first half of 2021, there were over $2.5 billion in NFT sales and almost a billion in July alone.
Although not currently sold on social media platforms, NFTs are considered inherently social art pieces. Therefore, their nature aligns with the networks’ DNA. So far, Twitter has moved to include NFT profile pictures on its platform. Consequently, it has led to speculations that Meta might follow suit by introducing an integrated display format for its users.
What Are Non-Fungible Tokens (NFTs)?
An NFT is a unique data unit built and stored on a blockchain. NFTs cannot be replaced or duplicated; meaning it is not fungible.
NFTs can range from GIFs, audio, digital art, domain names, etc. One can create these virtual assets as a digital representation of a physical object. When it comes to NFT management, owners can do this on the blockchain, and they can sell or buy primarily on cryptocurrencies such as Ethereum.
NFTs and Social Media
Monetization of Digital Content
Interested parties can use NFTs as a tool for social media users to monetize their content and sell it to earn money. Unfortunately, note that everyone can easily access digital content, and it does not have the necessary resources to hold value.
One can transform art into NFTs by linking it to a crypto-based token. It will allow content creators to stand out from the crowd and sell their products. Due to the increasing popularity of NFTs, social media platforms stay up-to-date with the latest trends, which is mostly a way to advertise the sale of these assets.
Even though social media platforms might not directly enable NFT selling, they can still play a vital role in building a bridge between buyers and sellers.
Accessibility
Developers of web3 applications are creating decentralized ecosystems that bridge the gap between web2 and web3. These ecosystems hope to bring in more web3 applications to social media platforms like Facebook and Twitter.
One of the main advantages of web3 applications to NFTs is that they make it easier for people to discover and interact with NFT-related content. DApps like the MetaMask extension can help users save time and effort.
Instead of having two separate accounts, users can quickly move between platforms by signing in with just one account.
Ownership
A content creator will reserve rights for any piece of work they post over social media. They will also maintain the right to use the image in their works.
Social media users who upload various types of content on their sites, such as music and digital art, may increase the uniqueness of their work by giving them an NFT value. It allows them to make their work one-of-a-kind. The concept could help social media users who somewhat lose money due to the illegal reproduction and streaming of their content.
Social Media Companies Making Moves Into NFTs
Facebook/Meta
Meta plans to launch a pilot program in May to allow users to share and post NFTs on Facebook. It will then add a feature that will enable groups to be created based on the organization’s ownership. The company also plans to start monetizing NFTs through ad and fee revenue.
Instagram is currently working on a feature that will allow users to connect their digital wallets to their accounts. In a blog post, Instagram stated that it is now testing digital assets with a few U.S.-based collectors and creators of digital collectibles. The feature will allow them to share their creations with their followers and display their public information.
According to the Instagram team, the social media giant currently supports NFTs on Ethereum and Polygon blockchains. It also promised to add support for other cryptocurrencies such as Solana and Flow soon.
As plans to integrate cryptocurrencies into Twitter continue to unfold, the company has introduced a new feature that lets users show off their NFT on their profile pictures. However, the option comes with a subscription fee of $3 per month. It also makes it easier for people on Twitter to confirm their NFT ownership. They can now easily connect their crypto wallets to the platform and display their NFT on their profile picture.
Reddit’s NFT collection, CryptoSnoos: Reddit
In a new feature, the Reddit team is testing, users will be able to set their NFTs as their profile picture.
The development will be similar to Twitter’s plan, where users can now set their NFTs as profile pictures. These photos, displayed as hexagon-shaped images, provide users with additional information about their NFT. However, the Reddit team is still working out the details about support for NFTs.
YouTube
YouTube has started looking into partnering with non-profit organizations to provide additional revenue for their creators. Through this initiative, YouTube has been able to distribute personalized NFTs to its influencer network. These creators will also be able to monetize their videos as NFTs.
The company noted that the new tools would easily allow fans to own unique content from their favorite creators. However, it didn’t provide a clear statement on whether the owner of NFTs would violate copyright law.
The Role of Social Media on NFT
Both buyers and sellers commonly use social media platforms to connect. They also serve as a common ground for brands to connect with consumers.
People can show off their unique interests in something through an NFT, a social media activity that allows people to drum up excitement around a particular experience. An NFT’s rarity and the thousands of positive comments and praise-hand emojis it generates will help boost brand awareness and business.
NFTs has been very popular in various areas such as sports and entertainment, some companies are still in the early stages of developing their strategies to benefit from it. Some of the major brands that have already entered the space include Nike and Adidas. In 2019, Nike introduced CryptoKicks, a blockchain-based platform that allows users to represent their shoes digitally.
Although there are no concrete features yet to support the sale and purchase of NFTs, companies are exploring the concept of an external platform.
The Future of NFTs and Social Media
Despite the seeming no-brainer nature of NFTs, they are still in their infancy. To become successful, creators must first become familiar with the various marketplaces and wallets available on the internet. It can be a daunting task for most social media influencers. They may not have the technical expertise to navigate the complex world of NFTs, but it is a necessary part of their success.
It can be a costly process despite the convenience of working with NFT studios. The NBA’s Top Shot project, for instance, involved a multi-million dollar deal with Canadian startup Dapper Labs. On the other hand, some NFT startups also provide pro bono services to help underrepresented artists.
Through web3, businesses can now reach out to NFTs and create a customized influencer marketing campaign. Traditionally, a company would pay a creator in advance for their work. If a brand continues to use a content creator’s work in the future, they are not compensated. It could change with the integration of NFTs into influencer marketing. The move could allow businesses to reduce their upfront investment.
The use of NFTs can also help eliminate the issue of traceability, as they can track the effectiveness of the influencer marketing campaign.
NFTs Could Take Over the Future
Despite the various advantages and drawbacks of NFTs, they are still an integral part of the metaverse. They can help creators earn from their work and provide genuine value to their followers.
The rise of web3 platforms has opened up new opportunities for content creators. They can now create a more immersive virtual world filled with human elements. Because of this, people are more likely to connect through web3.
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