Still, you might question what you can do with an NFT since it only exists digitally.

You can drive around with a Porsche, but you can’t exactly do the same with an NFT.

Is it simply just a digital collectible?

Well, not quite. Some NFT creators might add redeemable perks for token holders of their collection.

Here are some factors to look out for in an NFT project:

• Physical redeemable goods
• Access and Utility
• Community
• Intellectual Property

Let’s take a closer look at each one.

Physical redeemable goods

Billy saw their favorite luxury brand had created an NFT collection.

They launched the collection with 500 NFTs that displayed a looped video of a limited edition shoulder bag.

The creators of the brand recently announced that all token holders of this NFT can redeem the physical version of this shoulder bag if they choose.

Interested in owning one of these bags, Billy downloaded the video and was excited to receive their limited edition shoulder bag shortly.

But Billy never received their shoulder bag.

Why was that?

Because simply downloading the video didn’t mean they owned the NFT. As per the advertisement, you needed an NFT to redeem the luxury shoulder bag.

If Billy had purchased the NFT instead of just downloading the artwork that represented the NFT, they would have been able to redeem the shoulder bag as promised.

Another thing to note is that there are only 500 of these NFTs created (in supply). Thus, there will only ever be 500 physical versions of these shoulder bags available.

Token holders will get them along with the NFT they purchase, but others who want to get their hands on one can only get them from the secondary market.

For some people, this scarcity of supply (only 500 ever created) means that the NFT is more valuable.

Several things are going on in this example here. First, you might be able to unlock physical goods for owning the NFT. Several existing NFT collections have done this already. Here are two examples:

• Owning a Gift Goat from the VeeFriends Series 1 collection (launched in 2021) will allow token holders to receive six physical gifts per year for three years.
• The FEWOCiOUS x RTFKT NFT is a looped video of a digital sneaker, but each NFT purchased comes with a physical pair of sneakers.

The RTFKT example is a very interesting case. Not only is it an extra perk for being a token holder of the NFT, but it also enables a new way to combat counterfeit goods.

In this case, 1 FEWOCiOUS x RTFKT NFT = 1 redeemable pair of sneakers.

An Example of NFTs: RTFKT’s Recent History

RTFKT Studios was acquired by Nike on December 13th, 2021. This acquisition was not entirely surprising, given that Nike had been working on a concept called "CryptoKicks" for some time.

In 2019, Nike filed a patent for a system where a physical shoe would be tied to digital assets on the blockchain. This was to counter illegal, fake Nike shoes being produced in different areas of the world. With CryptoKicks, consumers would be able to prove that they own the authentic Nikes by possessing the accompanying NFTs.

This is just one use case of a traditional company aiming to use NFTs as a way to drive ‘utility.’

Access and Utility

Now, let’s look at access and utility.

Some NFTs serve as access tokens to virtual and physical experiences: getting into a restaurant, a virtual or physical conference, a music festival, a basketball game, a meet-up with a celebrity you admire, or something else.

Here is an overview of several existing access and utility NFTs:

VeeCon: An exclusive 3-day web3 and cultural conference. VeeFriends Series 1 NFT holders are given access to the conference in 2022, 2023, and 2024 through an airdrop.

That’s right, if you purchased an NFT, you got access to this event.

Here is the World Of Women team at VeeCon 2022, and many of our community members (who are also VeeFriends holders) got to meet us there.

FlyFish Club: The first restaurant that only allows holders of a Flyfish Club NFT to dine at their restaurant in New York City. Token holders can also rent out their NFT for a month as a means of passive income.

Coachella Collectibles: Coachella launched a collection that gives lifetime festival passes, on-site experiences, and physical items.

NBA All-Star VIP pass: The NBA collaborated with NBA Top Shot to create 1/1 NFTs for each team in the league. Token holders of these 1-of-1 NFTs have VIP access to the next 5 NBA All-Stars from 2023.

Puer by Lonely Bug: Lonely Bug is an NFT collection launched by Liam Payne, musician and former member of One Direction. The Puer 1/1 gave the token holder the ability to dine at Resorts World Las Vegas with Liam Payne, Zedd, Gary Vaynerchuk, Sillygabe, along with other crypto leaders.

Keep in mind that these are just a few examples of what NFTs can offer.

The possibilities for access tokens are virtually endless.

That said, not all NFTs will have access experiences and not all NFT projects will be able to deliver on their promises. So bear that in mind before buying a token.

Always do your own research and be cautious of fake accounts and false information.

Security reminder: please be cautious of any dodgy sites pretending to be another web3 project ❤️

Community

An NFT project’s community and how its members interact with one another is a strong indicator of what the NFT project is all about.

Some NFT communities may only be concerned with floor prices, while others may forge genuine friendships and connections with other members.

So pay attention to the community too. The connections you make along the way are just as, if not more important than, the perks that you get along with owning the NFT.

What matters is how members are communicating with one another and how active they are in sharing their excitement about the values of the brand or collection.

One of the best ways to get involved is by going directly to Discord and interacting with the community there. Discord is one of the most popular social media platforms for NFT communities to gather and get to know each other.

After joining, you will perhaps start to see why some people have developed an emotional attachment to the NFT they own.

Intellectual Property (IP)

When buying an NFT, it is worth checking whether or not it comes with IP rights.

This is important because there might be restrictions on what can be done with the NFT.

You see, some people may want to use their NFT for commercial purposes, such as opening a restaurant with a theme relating to the NFT art.

Others may want to sell T-shirts that have the NFT designs on them. To do so, you must ensure that the NFT comes with full IP rights.

💡 Fun Fact: Did you know that if you own a WoW, you have full ownership over the art?