Non-fungible tokens (NFTs) are unique blockchain-based tokens that represents a digital or physical asset and cannot be swapped for each other.
Consumers who buy NFTs only receive the token and a link to the file's specific location. Until particular terms and conditions are mentioned, or a legal contract drawn up, NFT buyers aren’t aware of their right.
Brands interested in entering the NFT market should know that NFT ownership is concentrated in a very small demographic. They should also provide clear terms and conditions that spell out exactly what the customers have bought and their rights over the NFT.
Further, companies must ensure that the software written for NFTs is well optimised to improve the user experience and prevent brand damage. Additionally, brands should be aware NFTs have negative environmental impact, are unregulated, and can be taxed.
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