We have spoken about this topic before; NFTs with utility are the future of this space. The reason we so strongly suggest finding projects with utility is that they carry real-world and quantifiable value.
Yes, specific projects carry no utility and have increased value for the holders, but those cases are much slimmer than the media may portray. At this writing, there are over 23 million assets for sale on the world’s largest NFT marketplace, OpenSea. Knowing that the NFT universe is immense and ever-expanding, it is safe to say not all these assets will appreciate.
Utility NFT: An NFT assigns a use to the digital asset outside of owning just a piece of art. A utility NFT can be one in which you receive a physical piece of art that matches the NFT you purchased; it could be special access to an event, exclusive in-person memberships, or future use in the digital world (think to game).
Projects that define themselves as Utility range in what their ultimate use is. There are examples of utility where you buy an NFT and get sent hand-painted artwork; some offer exclusive events, use in a digital world (think gaming), or investment toward a physical space (like the Crypto Baristas project).
Everyone wants to get their hands on the next Crypto Punk or Bored Ape Yacht Club, but the likelihood of finding and obtaining a high-flying NFT is quite slim. We suggest focusing on NFTs that have utility, purpose, and a strong community. You cannot go wrong investing in a project with solid real-world value as you can justify the investment, and who knows, maybe it will increase in value!
Here are the top NFTs with Utility
The Crypto Baristas project looks to connect the Metaverse and the natural world by creating a utility-based project that funds the opening of a coffee shop in NYC.
“The goal of Crypto Barista’s is to build a community of like-minded individuals that appreciate art, caffeine, entrepreneurship, and innovation. The project’s ambition is to initially open a physical space in NYC where art and innovation are at the forefront. The future of Crypto Baristas beyond that will be up to the holders and followers of our campaign.”– Dan Hunnewell (Owner, Coffee Bros.)
Owners of a Crypto Barista enjoy caffeinated perks for life at all future cafe spaces, Coffee Bros. website, governance over the café roadmap and Barista Bank, first dibs on the Season 2 releases, and voting power on future characters and project direction.
When we talk about connecting the digital world and the physical world, the first project that comes to mind is VeeFriends.
VeeFriends is Gary Vaynerchuck’s successful attempt at creating a like-minded community that converges at the VeeCon event, which focuses on business, marketing, ideas, creativity, entrepreneurship, and innovation.
Nouns.wtf is one of the most exciting projects with utility in the space. Nouns are randomly generated characters that are created daily, forever. The proceeds from each sold Noun go into a shared treasury and are governed by the Nouns DAO (decentralized autonomous organization).
Nouns DAO utilizes a fork of Compound Governance and is the main governing body of the Nouns ecosystem. The Nouns DAO treasury receives 100% of ETH proceeds from daily noun auctions. Each Noun is an irrevocable member of Nouns DAO and entitled to one vote in all governance matters. Noun votes are non-transferable (if you sell your Noun, the vote goes with it) but delegatable, which means you can assign your vote to someone else as long as you own your Noun.
Decentraland is a virtual world with its own DAO (Decentralized Autonomous Organization) that hands over control to the virtual space users.
Decentraland’s world is fueled by their marketplace of virtual in-game assets like land, wearables (for your characters), and more.
All that is needed to play is a web browser and a cryptocurrency/digital asset wallet like MetaMask. While the wallet is unnecessary, it improves the game’s experience as your wallet keeps all your digital assets safe, like names, collectibles, and LANDS.
The Currency is a project by famous artist Damien Hirst who is putting a spin on what it means to have an NFT with utility.
According to Hirst, “The Currency” project is more than just an opportunity for buying works, it is a project that in itself “challenges the concept of value through money and art” by inviting people to participate in the process of buying, holding, and selling artworks, and forcing them to confront “their perception of value, and how it influences their decision.”“The goal of Crypto Barista’s is to build a community of like-minded individuals that appreciate art, caffeine, entrepreneurship, and innovation. The project’s ambition is to initially open a physical space in NYC where art and innovation are at the forefront. The future of Crypto Baristas beyond that will be up to the holders and followers of our campaign.”Source: news.artnet.com
Damien is creating 10,000 NFTs that correlate to 10,000 of his physical dot art pieces. If you buy the NFT, one might think that you get the physical art piece, well, not quite. When buying into The Currency you have one year to make a decision, do you keep the NFT or burn it and collect the physical artwork. If you keep the NFT, than the artwork itself will be burned.
Additional NFT Reading:
Read More: How to buy an NFT
Read More: How to value an NFT Investment