We haven’t even begun to tap into the potential of NFTs

Earlier this summer, CNN and The New York Times warned that he non-fungible token bubble (NFT), fed from the buzz about the staggering valuations of digital art and the interest of collectors, it could already be bursting.

As the sixth employee of a social media startup called Wildfire, which was acquired by Google in 2012, I am very familiar with skeptics and cautionary tales when it comes to new and emerging technologies. Based on my experiences in entertainment, licensing and blockchain technology, I argue that if the so-called NFT bubble bursts, it could be a positive net result for the future of the industry. The industry is so fledgling that we're the first inning hitter right now.

Related:Beyond the hype: the true value of NFTs yet to be determined

NFT: the industry to explore

Public attention is always shifting from one trend to the next, so naturally the rise in popularity of otherworldly NFTs that we've been seeing will eventually subside. This presents us in the industry with an incredible opportunity to explore the many doors that NFTs will open to creators, IP owners and consumers alike.

For brands looking to grow and reach new audiences, NFTs are emerging as a bona fide marketing channel. Once NFTs gain more widespread recognition beyond the initial swell, creators will have the ability to reach more and more users. Platforms like Telegram, Twitch, and Discord have already demonstrated the many ways to create and nurture a fan base. Imagine what a robust NFT market will add to this growing movement.

As digital certificates of authenticity, NFTs can function as guardians of intellectual property rights. The NFT space will eventually be seen as the music publishing model, where music publishers and songwriters accumulate copyright catalogs that provide a persistent stream of royalties in perpetuity, driving long-term valuation. Creating a management platform that enables IP owners to manage NFT transactions - think business intelligence, analytics, and CRM capabilities - is on the horizon.

Related: Non-expendable Tokens: A New Paradigm for Intellectual Property Assets?

NFTs also serve as digital passports, completely revolutionizing the fan experience and reinventing the idea of ​​the fan club for artists, brands, and IP owners. As the world fully opens up after the COVID-19 pandemic, fans will use their NFT wallet to unlock behind-the-scenes deals, VIP experiences, and special encounters. Since digital assets, like tangible goods, are based on the economic principles of supply and demand, scarcity will increase value and increase the number of consumers and digital natives seeking to enter the ground level. Additionally, proximity-based NFTs will drive experiences, both online and offline.

NFT: Moving Forward

The future of NFTs just keeps getting stronger as the industry continues to put fans and consumers first in mind. We must divert media and consumer attention away from the six- and seven-figure primary sales figures to focus on creating real value by infusing true utility into NFTs. We must focus on creating smart and strategic NFT collections (as opposed to one-off deliveries) that realize improved value over time as the usefulness of purchased NFTs becomes more and more apparent to fans.

The industry is rapidly evolving from what I consider to be NFT 1.0 - NFT as digital collectibles - to NFT 2.0 - NFT as storytelling vehicles. Projects like Stoner Cats are the tip of the iceberg in terms of leveraging NFTs like access tokens to view exclusive video content. What excites me even more are NFTs as storytelling vehicles, where NFTs work with deep gamification strategies and community layers and become critical components of a cross-platform transmedia storytelling experience.

At Wildfire, we were always aware that a high tide lifts all boats. We made significant efforts to strengthen not only our company, but the entire social media marketing category. I feel the same about the nascent NFT industry. More importantly, NFT companies must remain firmly focused on fans and consumers to avoid becoming an industry sinking under the perception of misappropriations of cash and myopia.

Related: Navigating the NFT Minefield - Should be Easy for First-Time Buyers

NFTs will become fans' persistent passport and gateway to unlocking unique experiences, both online and offline. This will happen as NFT collections become smarter, more strategic, more gamified, and provide significant utility that maintains long-term fan engagement.

As the industry matures, people will become more sophisticated in the way they think about NFTs and the maximum value that NFTs offer to fans and IP owners alike. Utility will become increasingly important as fans and consumers seek to better understand the "and what" factor behind NFTs. So what is it that I own this NFT? . .What can it do for me? What benefits does it bring to my life? What value do I get from owning this NFT and how long will this value last?

The industry will continue to make great strides forward as key innovators in the space direct our approach to community, game mechanics, and storytelling to drive the real value and usefulness of the NFTs we bring to market.

This article does not contain investment advice or recommendations. Every trade and investment move involves risk, and readers should do their own research when making a decision.

The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.