Who would’ve EVER thought that Apes would rule the world? Well, we did get a ton of hints and clues from blockbuster movies, but that was it! Movies. Apes were supposed to remain an on screen rival planning to take over planet earth. But with NFTs dominating most online and offline conversations, Apes, alongside cute cats, doodles, noodles, stars, and apples are undeniably becoming a part of our lives. But what’s the use of these NFTs? What value would an Ape be for you? And what is an NFT utility?
If we got so lucky to catch your eye with this post, take a minute to go over this ultimate guide about NFTs. It’s totally worth your time!
What is an NFT Utility?
What is an NFT Utility?Well, aside from actually OWNING the digital asset, many projects assign an actual, mostly physical, use of buying NFTs.
Now, an NFT utility can be anything from a physical piece of art, all the way to exclusive access to events and clubs. At the beginning of this whole NFT craze, an NFT Utility wasn’t much of a thing you had to think about.
But as more collections joined, amazingly great art was everywhere. So, resale values were at stake, and collection owners had to get creative with their unique selling propositions. Things to answer the questions: “What’s in it for me?” and “What’s next?”
Where Can I Find My NFT Utility?
An NFT utility is usually shared when a project first launches. Upon announcing a new NFT, the owners share the project’s roadmap, and what they expect out of it. This roadmap usually includes the NFT utility, and the benefits that you as an owner would reap from buying into this collection.
Why does an NFT Utility Matter?
You might think to yourself, if I can flip an NFT and make a good sum out of it, why do more? And you’re right, if you’re here to just flip and make some quick cash.
But in reality, many NFT collectors and fans are in this for the long run. And that’s what an NFT utility is – a long term commitment and promise of benefits.
If I was to be fully honest, the chances of you, and me, regular people, snatching the next blue chip NFT are slim. Very slim! That’s why many have shifted their attention towards NFTs with valuable utility. You know, to get the best bang for their buck!
Types of NFT Utility
Every collection can provide one or many functional uses of its NFTs. And this can really narrow down your search for a new favorite collection. Like I wouldn’t buy into a collection planning on creating a music studio with the voice I have! But I would totally be interested in having commercial rights to my NFT!
Access
Not that this type is the most common NFT utility, but it’s the most desired for now. You know, it’s hard to fully let go of the real world, so gaining physical access to events can be comforting.
NFT events are becoming very common. We’ve recently seen some great parties by Doodles, Weather Report, and a full-on carnival by Karafuru.
Aside from the expected fun, IRL events are a great way to know your collection isn’t pulling any rugs on you. You get to meet the founders, designers, and other NFT holders, minimizing the count of red flags flopping, as much as possible!
Redeemability
One of the most common uses of NFTs is ownership. You get what you paid for – that kind of model. Basically, the owner of a redeemable NFT can exchange it for either a physical or digital good. One example is, RTFKT, a pioneer in creating virtual sneakers and collectibles. In collaboration with crypto artist Fewocious they created a collection of virtual sneakers where specific NFT owners were eligible to redeem a pair of physical sneakers.
Although this sometimes might cause some legal drama with copyrights, knowing that you can actually own something physical if this whole bubble bursts can be somewhat reassuring.
Air drops
Airdrops are probably the best thing that could happen to NFT owners, that’s why they’re quite common as an NFT utility. An airdrop is a way creators send cryptocurrency, NFTs, or tokens to a web3 wallet for free as a promotion or as an extra perk for members.
Most creators use NFT airdrops to draw attention to their upcoming collections and increase engagement rates on Twitter, Instagram, and Discord.
A recent example is Apecoin. The token by Bored Ape Yacht Club was airdropped to BAYC NFT holders and after claiming it, investors could either hold or sell for a profit. In the case of Nathan Head, tens of thousands of US dollars!
Breeding
The perfect example of a breeding NFT utility is probably CryptoKitties. This Ethereum blockchain game allows you to breed 2 NFTs to create a new kitty NFT. The new NFT randomizes traits from both parent kitties to produce a whole new one on the blockchain.
Axie infinity also follows that same model. By breeding 2 existing Axies, the owner can produce a new NFT which you can sell for cash or trade on the game’s marketplace
Merging
Tom Sachs, the designer of the iconic Nike Mars Yard shoes, offers a different kind of NFT utility. It mainly falls under “merging”, but if all goes well, you get to own a physical replica of your NFT.
The Rocket Factory collection features Jpegs of parts of a rocket, a Nose cone, body, and tail. Owners of 3 pieces that make up a rocket will have their NFTs merged to assemble a rocket NFT. The rocket will then launch and the owner gets a videotape of the operation. And if the rocket lands safely, you’ll have your rocket mailed to you! Read more here if you’ve always wanted to be an astronaut.
Gaming
The gaming industry and NFTs go so well together! Maybe even better than the music and sneaker industries do!
As gamers would go above and beyond to level up their characters, and gain access to skins, material, and weapons, it would only make sense for some NFTs to provide these perks.
The use of NFT in games is on the rise, with gaming marketplaces accepting crypto in exchange for XP, access, and many other perks. Read more about Gaming NFTs here, and learn how gamers are only pushing NFTs up!
More NFT Utility
More functional uses of an NFT include opening a physical coffee shop in NYC, getting exclusive music by your favorite artists, or even having a unique digital identity on web3. Charity has also been a big part of the NFT scene, giving the blockchain a real sense. But one big perk of joining almost any collection, is the proximity you feel to celebrities and favorite IRL icons!
Unlike what many people would argue,
NFTs aren’t silly or a dumb venture to get into. In fact, a lot of development, art, and marketing goes into launching legit NFT projects. So if you do your research and invest in the right collection, buying an NFT could be the best thing that’s happened to you since Yeezys last made a decent resale profit!
But Yeezys aside, the sneaker industry is as solid as ever. With big collaborations launching, sneaker bots grinding, and brands like Nike changing their strategies, resellers are living the dream!
Click below to learn how you can join them.
Bored Ape Yacht Club Utility – a Case Study
One great example of an NFT utility is BAYC. The list of functional uses and benefits of owning a Bored Ape Yacht Club NFT is long. Your original BAYC NFT could get you new NFTs, get you access to events, and exclusive merch. And now with the news out about BAYC buying Cryptopunks and Meebits, sky’s the limit with all these projects.
- BAYC owners have commercial usage rights to their apes. So you can actually create merch featuring your Ape and sell them!
- Owners also got access to owners-exclusive merch.
- The Mutant Ape Yacht Club was also originally a member-exclusive NFT collection that opened up to the public after a waiting period.
- BAYC launched a new project – the Bored Ape Kennel Club (BAKC), and the entire supply of NFTs was airdropped exclusively to Bored Ape owners.
- The floor of BAKC now sits around 8 ETH ($27,600) on the secondary market.
- BAYC holders get to vote on where the project’s funds go. And so these community initiatives have resulted in donations worth millions to various charities.
- Latest roadmap updates by the Bored Ape Yacht Club have announced more members-only perks, like a scavenger hunt, games, and more on the way..