Non-fungible tokens (NFTs) are digital assets representing virtual and physical things, ranging from photos and music to contracts and ID files.
In Q1 2021, the total volume of NFTs traded exceeded $500 million. The next quarter, the volume traded increased by 40% to $700 million. Since NFT tokens are created on a blockchain, the original owner or creator of the asset can always be traced back, with no scope of substitution or fakery.
Smaller brands can use this feature to issue counterfeit-proof promotional coupons, discounts and tickets using blockchain codes. Brands can also give digital NFT loyalty cards to their customers. Clients can then download the cards on their mobile and scan the loyalty NFT code to accrue loyalty points at every transaction.
Similarly, an NFT fundraising campaign for brand expansion helps assure donors that their money is being used only after the brand reaches certain milestones, as established in contracts. NFTs also help brands create cost-effective sweepstakes or gamification types of promotion campaigns.
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