If you think NFTs are useless, you're wrong! Here's why (prove me wrong)

I always find it funny that people are so quick to call NFTs a scam when it's a space that is so new and still finding its feet in Web 3,0. Funnily enough, it's always towards the trading component and never about use cases outside of this niche within the space. Usually, because they have no idea of the other utility that's being created and built.

It's undeniable that the list of use cases will continue to grow and they will become part of our lives over time. Some of the below are either happening now or will eventually become tangible in 2022-23.

Vertical Marketplaces

NFT projects will shift towards DTC marketplaces like larvalabs and SolanaMBS. Managing user experience is critical for retention, and eliminating 3rd parties doesn’t hurt.

Soulbound NFT's

NFTs are lauded for their transferability, but there are many use cases for non-transferable tokens: driver’s licenses, diplomas, certifications, proof of attendance, etc. Soulbound NFTs lock-in provenance, and can not be sold.

Retail Sector

Retailers from 7-11 to Gamestop will use NFTs to incentivize IRL transactions, leveraging creators to drive traffic to storefronts. For example, Yeezy NFTs that airdrop with purchases from Gap stores, or NFTs that unlock exclusive features for Tesla vehicles.

Borrowing Platforms

Because NFTs can unlock temporary access—like entry to conferences—markets for short-term lending are emerging. Imagine this as a marketplace: StubHub, but for NFTs.

NFT Indexes

Getting exposure to hundreds of NFTs via indexes will boom as market movers tap collectors for funds. Imagine a Christie’s NFT ETF. They have the influence to get assets to liquidity—investors will ape into that. It will also broaden support for NFT communities.

Bounties

Creators and brands will drop unique quests within communities, rewarding completion with NFTs. This could be anything from completing a questionnaire to referring members into the community, to attending events. Bounties can be highly competitive, or open wide.

Social Investing

Web3 streamlines investing by reducing manual processes like spreadsheet mgmt + signature collection. It also acts as a social record—startups like PartyRound will build networks around such activity, and reinforce them with NFTs.

Legal

The benefits of block security and its ability to trigger transactions via oracles will accelerate the adoption of web3 legal services + contract development. A DocuSign killer (or acquisition target) will be built in 2022, and it will deliver NFTs to contract executors.

Services

NFTs will unlock access to services and hobbyist communities. Q&As and tutorials with influencer chefs, photographers, doctors, and niche enthusiastic communities will boom. This will also extend into IRL services like transportation, hotels, and spas.

Content Submission

Users will submit content like short-form videos, reviews, and tutorials in exchange for NFTs. It’s a marketing flywheel. Rights can be programmed into contracts so that the use of the contributor’s content in advertising could yield their future profits.

Activism

Communities, where NFT ownership supports political causes, will gain traction as millions flow into community wallets. Imagine environmental NFT collectives where sales are directed towards lobbying efforts, and those efforts are coordinated by a community DAO.

Social Feed Marketplaces

Social feeds based on NFT collections will emerge, providing insight into the strategy of top collectors, and a platform for collectors to interact. These feeds will evolve into social commerce marketplaces, featuring reviews, analytics, and more.

Multiplayer

NFTs will create hive activity by incentivizing group behavior. MMORPGs that unlock levels once 10k users have aped in. Airdrops of rare NFTs to collector cohorts that have signed contracts to merge their base-layer NFTs. Collecting is going to become a team sport.

Collateralization

To date, lenders have been averse to NFT holders borrowing against their assets. But as institutional money flows in, and assets become better stores of value, collateral markets will promise flexibility and liquidity for all NFT holders, not just whales.

Fractionalization

Splitting up NFTs into individual shares gives more people exposure to blue-chip assets, like owning a piece of a CryptoPunk. The result? More liquidity for holders and more appreciation of blue-chip assets as money enters the markets.

DeFi

As enthusiasts become more comfortable staking and farming their holdings for yield, NFTs promise incentives beyond APY%. NFTs will become base DeFi assets, with community access included. These won't be simple savings plays—they'll also be investments in communities.

Loyalty Exchanges

As brands and creators seek to reinforce loyalty, community behavior will be rewarded with NFTs. Did the member contribute content? NFT. Complete surveys? NFT. Make a purchase? NFT. Tokens are more liquid and bragworthy than traditional discount codes.

R&D

Brands and creators will exchange NFTs for insights on product development: pain points, marketing claims, roadmap, and more. The NFTs will unlock early access to product releases and potential profit sharing. Brands will track and maintain these key relationships.

Customer Cohort NFTs

Imagine receiving an NFT for being one of the first Air Jordan customers, and how valuable that would be today. How Nike might reward you years later with special access and product. Cohort NFTs prove that you took a certain action, at a certain time.

Education and Customer Support

Upon demonstrating exceptional knowledge of a brand’s product, users can receive NFTs in exchange for onboarding newbies into the community, or providing support. This can be exponentially more impactful than a brand employee doing the same.

Leaderboards

NFT communities will gamify by highlighting the performance and participation of top holders. Top contributors will receive rewards and clout, thereby incentivizing communities to hold and participate in order to secure better returns on their investments.

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Take a second to actually look past the BS in the space and see that there is huge potential. #WAGMI

Edit: shout out to r/WhatTheNFT for the education