NFTs are digital artworks or other digital files that can be transformed into collector items. In other words, NFTs are unique and verifiable assets. Hence, NFTs are gaining enormous popularity, and the mania for their acquisition continues. Nowadays, purchasing an NFT token is an attractive way for many people to allocate capital and additional income, and investors spend millions of dollars on them.
While the current NFT frenzy focuses on different areas of our lives, from artwork to sports, music, and fashion, it’s also starting to take over the charity and investing spaces, with more and more organizations incorporating NFT fundraising activities. So, is NFT fundraising taking over the traditional ways of raising funds that charities have been using until now? We will answer this question in this article.
How Are NFTs Created?
NFT tokens are created based on blockchain technology linked to cryptographically unique digital (and sometimes physical) content that cannot be replicated. This makes NFTs non-interchangeable and unique. Although creating NFT tokens requires appropriate technological solutions, it is a relatively easy and non-complex process. As a result, everyone can create their own NFTs, even if they haven’t had any experience with blockchain technology so far.
The first and most basic element of the NFT creation process is selecting the correct blockchain protocol to issue NFT tokens fully compatible with the NFT marketplace of your choice. Most NFT marketplaces run on the Ethereum blockchain technology. The next important step to creating your own NFT is choosing the platform where you want to sell it. Then, set up your wallet on your chosen marketplace. Once you do that, you will be able to upload your artwork to the platform. Finally, to create your NFT, confirm it via a digital signature.
Why Is NFT Fundraising A Good Way To Raise Capital?
As a result of the global COVID-19 pandemic and the related inflation and the lack of trust in banks and investment funds, NFT tokens have recently gained enormous popularity, especially in business environments.
Although most people who buy NFTs are investors and collectors, NFTs also have some impressive uses outside of this realm. For example, charities see NFT fundraising as a valuable tool to raise capital in a unique and more authentic way. Non-convertible tokens are a great way to raise money for non-profit organizations and encourage users to participate more in the life of the charity.
Moreover, since the pandemic is slowing down and online communities are looking to connect in real life, NFT fundraising conferences are predicted to be a big trend in 2022. These NFT fundraising conferences can present opportunities for social interaction and potential collaborations with NFT creators.
Where Is The NFT Mania Taking Over?
With such a fast and surprising growth in the popularity of NFT tokens, the NFT mania is taking over most areas of our lives, such as art, sports, games, music, and even health or real estate. What’s more, big financial corporations, and global media giants, such as CNN and Times magazine, have also joined the NFT token frenzy.
The involvement of big and well-known enterprises in this market will accelerate social acceptance for NFT technology and its adoption by more and more industries. With such a dynamic and global increase of NFT tokens, it can be expected that we will experience an explosion of solutions based on NFT technology in the coming years.
How Does NFT Fundraising Work?
When the real NFT mania started in early 2021, charities began looking for ways to use NFT fundraising to generate more capital. Many non-profit organizations, eager to use every conceivable method of generating income, have now started to view NFT tokens as a promising means of raising funds. More and more charities now think that NFT fundraising will expand their revenue-generating opportunities. Charities can successfully use NFT technology because everything digital, such as graphics, tweets, songs, or video games, can be minted in a certified, unique NFT. The only limitation here is related to the possibilities of the creative imagination and the buying-selling market.
One of the possibilities of using NFT fundraising by charities is to partner up with big brands to host NFT fundraising auctions. Big brands are already jumping on the NFT trend and collaborating with NFT artists to create valuable NFTs that they can then use to generate more revenue. By offering these NFTs to non-profit organizations, big companies can raise brand awareness and create a stronger sense of trust with their customers. To charities, it is an excellent way to raise more funds.
Non-profit organizations can also use this strategy to collaborate with celebrities and famous people. By linking their NFT fundraising efforts to well-known stars of the entertainment, arts or sports industries, charities can become more visible and raise considerable amounts of money. More and more celebrities are now partnering up with NFT marketplaces and charities to create NFTs. All the profits they earn from selling those NFTs to their fans are then donated to their charity of choice.
Another way that charities can use NFT fundraising is through donation. People can choose to donate NFTs to charity, the same way as they used to donate money or valuable items to be auctioned by the charity later on. The charities can then decide how valuable the NFT is and auction it in an NFT fundraising effort.
Thinking About Creating Your Own NFT For A Good Cause
Instead of donating considerable amounts of money to your favourite charities, you can now support them by using NFT technology. If you are thinking about creating your own NFT for a good cause, you can do it with one of the many NFT marketplaces, such as OpenSea, Rarible, or SuperRare.
NextHash is another platform that you can use to create your own NFTs. NextHash is a global entity comprised of multiple units worldwide, combining the traditional financial industry with brand new digital assets by harnessing the power of blockchain technology. NextHash allows NFT creators to create and sell their NFTs by accepting payments in cryptocurrency, credit cards, or even wire transfers. Click here to learn how NextHash can help you create and sell your own NFTs.