Devising a strategy for the exclusive NFT marketplace

NFTs have been the latest in the addition of breathtaking investments. They might seem to be something like a passing cloud, but they have attained something bigger in recent times. Their achievements are big time.

In March of this year, singer 3LAU teamed up with cryptocurrency company Origin Protocol to establish a dedicated platform for selling his new album as a non-fungible token (NFT), which ended up selling for $11.6 million. However, visual artist Beeple famously sold a tokenized digital artwork for $69 million at Christie's auction house. Likewise, the NBA's Top Shot, which allows fans to buy and sell tokenized video clips of basketball game highlights owned by crypto platform Dapper Labs, has generated over $715 million in transaction volume.

However, individual creators and companies from various industries, including retail, music, entertainment, consumer products, fashion, and more, have begun actively investigating methods to engage with the world of NFTs in reaction to this huge development. A few sellers have been chosen to build their own NFT marketplaces. Likewise, the majority have discovered that partnering with a third-party platform is more feasible, as it can lower upfront costs, providing access to a larger existing customer base, and providing valuable add-on services like marketing, legal, and technical support.

Let's clear the throat and make it loud, the question would be, "What is an NFT marketplace? To make this precise, Please proceed further.

What is an NFT marketplace?

Unlike many platforms, like Netflix & Spotify, which offer unlimited digital material in exchange for a monthly fee, NFT platforms are based on the belief that, like physical content, digital content can be scarce—that is, limited in quantity—and hence meaningfully owned and traded. However, these platforms use blockchain technology to verify the provenance of a digital content, similar to how a traditional auction house might verify that any given piece of art is the original or not. Moreover, some even allow users to "burn" items, reinforcing the idea of scarcity for these digital products. Royalty attribution can be made easier by blockchain-based transaction logs, which automatically share a percentage of earnings from second-hand sales with the original creator.

Furthermore, when it comes to using a rapidly emerging new technology like NFTs, combining it with the appropriate marketplace can open up entirely new markets and revenue streams. While partnering with the wrong platform can backfire spectacularly, and the right decision isn't always obvious. However, to avoid any errors, it's critical to grasp the landscape of platforms that are accessible and choose which could be the best fit.

Different kinds of marketplaces

There are many aspects to consider; NFT marketplaces can be divided along a spectrum from streamlined to augmented, which makes a lot of sense.

Streamlined vs Augmented Marketplaces:

Streamlined marketplaces support a wider range of NFTs and provide vendors with more limited, generic services, whereas augmented marketplaces are more specialized and offer a more comprehensive service.

Moreover, streamlined platforms like OpenSea and Rarible feature both auctions and fixed-price sales for a wide range of NFTs and are more similar to traditional platforms like eBay, Esty, or Mercari. However, these exchanges are primarily concerned with facilitating efficient transactions. Moreover, they include payment infrastructures to accept both credit cards and crypto payments in Bitcoin, Ethereum, and other specialty tokens. Subsequently, they only provide a few services, and due to their variety, these platforms typically have a wide and diverse user base.

Augmented markets, on the other hand, are more focused on specific niches and provide a variety of value-added services such as minting (generating the NFT), marketing, curation, pricing recommendations, portfolio trackers, and even full-fledged games built on top of the NFTs. The NBA's Top Shop, for example, focuses solely on basketball collectibles that the platform packages and markets, SuperRare focuses on visual art and offers extensive curation and recommendation services. while Sorare, which focuses on digital sports cards, hosts fantasy soccer competitions that incorporate the cards users buy on the platform.

The significance of marketplaces:

These specialized services can bring a lot of value, but they aren't free. 

• An augmented marketplace platform has a higher "take rate," or transaction fee, as well as higher upfront setup costs, to pay for the resources required to roll out, integrate, and support an assortment of specialized tools and experiences. 

• Streamlined markets, on the other hand, have lower initial and continuing costs, but sellers may have to invest their own resources or pay outside professionals to develop, mint, and market their NFTs.

A unique way of interaction with the markets

Trying to figure out which platform best suits your company is when a company with a significant pool of intellectual property and a specific target audience may benefit from partnering with an enhanced platform. However, a larger initial investment in monetizable content is more likely to pay off, and these specialized platforms may leverage their specialist expertise to ensure a successful launch and produce an added value.

If you aren't sure what kinds of specialized services will be a good fit for your company, look to the NFT experiments of other producers for ideas. Artists, for example, may use these platforms to offer exclusive video content, while sports teams could offer a free meet-and-greet or VIP upgrade to NFT purchasers. The first fan to gather all 22 of the NFTs required to create a complete digital facsimile of the car will win an all-expenses-paid trip to a Formula 1 event.

Interaction will be made easy with all the necessary things to make up your work. However, try to handle the things in a unique way so that you can earn more traction.

Conclusion

So, if you're a maker, don't hold your breath for the "Amazon of NFTs" to appear. However, you can examine the marketplaces that are now accessible to determine how well they fit with your specific offerings and business goals, and if one appears to be a good fit, jump in with both feet. Make sure to pick the best fit and become successfull with the upcoming venture.