Dec 7, 2022

Everything you need to know about NFT membership and ticketing

Read this blog to find out how NFTs are used to create groups of loyal users with access to exclusive privileges.

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All About NFT Membership and Ticketing

What do digital artworks, in-game avatars, and unique online experiences have in common? The answer: all of them can be made an NFT.

The full form of an NFT is a non-fungible token. NFTs are stored on a blockchain, which is a digital ledger shared across a computer network. The NFT record contains information about the file, the creator, and the owner.

NFTs are a core aspect of Web3. They fit perfectly into a decentralized and open network. They unleash creativity, connectivity and commerce in Web3.

Some NFT Use Cases

The first known NFT arrived in 2014. It was a short video by digital artists Kevin McCoy and Anil Dash. It was sold for $4. Since then, NFTs have gained momentum. One of the most famous is Beeple’s Everydays, an artwork auctioned for $69 million.

Some NFTs that are currently popular are:

  • CryptoPunk avatar NFTs
  • Axie Infinity in-game NFTs
  • Moonbird Owl NFTs
  • Crypto art from celebrities such as Snoop Dogg, Emily Ratajkowski, and Paris Hilton

NFTs can also be used to access exclusive content, events or locations. These are referred to as NFT memberships and NFT tickets. Some examples:

  • Entrepreneur Gary Vaynerchuk’s  VeeFriends is a series of over 10,000 tokens. Owners are eligible for benefits, services, gifts, and communication with Vaynerchuk.
  • The Bored Ape Yacht Club is a collection of cartoon ape images. Owners are given access to a private online club, in-person events, and intellectual property rights for images.
  • OnePass is a collection of 2600 generative-art NFTs. Owners get benefits and privileges related to dining, nightlife, entertainment, and retail.

How NFT memberships differ from normal memberships

Both types of membership offer exclusive benefits to a select few. However, there are important differences.

  • A traditional membership cannot be transferred to another without the explicit permission of the organization. For example, members of the Soho House private club cannot transfer membership to anyone else.
  • However, NFT memberships can be transferred, sold and traded. A Bored Ape token can be transferred to another. The token holder can then use it to access exclusive events.
  • Traditional memberships are granted by centralized authorities. NFT memberships reflect the principles of Web3: they are decentralized and depend on online communities.

The ups and downs of NFT memberships and NFT tickets

On the plus side:

  • Transferability means that the owner can easily give them to someone else.
  • Low-cost secondary markets serve as convenient intermediaries. They can automatically assign royalties to the token issuer.

But there are some downsides, too:

  • Even well-educated crypto users can be duped into transferring value to a bad actor. Such scams involve replicating NFT marketplaces, false minting links, and other forms of fraud.
  • NFTs can be volatile. Their value is subject to market pressures and popularity.

NFT ticketing opportunities

NFT ticketing for events is a booming sector. According to a data report on NFT tickets:

  • Revenue is expected to reach over USD 65 billion in 2022. Projected revenue growth in 2023 is over 14 per cent.
  • The largest segment is sports events. It has an anticipated market volume of over USD 27 billion in 2022.
  • In the Event Tickets segment, the number of users is expected to reach close to 800 billion by 2027.

In a nutshell, businesses can build online communities of loyal customers with NFT memberships. Users are rewarded with exclusive benefits and offers.

Learn more about how to get the most out of your NFT data by scheduling a demo with Blaze today.