Belgium’s NFT (Non-Fungible Token) Market and Trends
Don’t believe everything you read in the Wall Street Journal (WSJ)!
On Tuesday, May 3rd, 2022, it published an article titled “NFT Sales Are Flatlining,” suggesting that the NFT market is dying.
The article was filled with statistics taken from a tiny window and slightly incorrect phrasing like “NFTs are bitcoin-like digital tokens.”
Crypto organizations and experts went to town criticizing the article with contradictory data painting an entirely different picture. What the WSJ failed to consider is the market’s propensity for change. It’s evolving, not dying.
Isn’t that what the future of finance is all about?
Let’s look at what NFTs are and how they fit into the financial landscape. We’ll also examine the current status of NFTs in Belgium, the opportunities there, and what the future holds.
What are NFTs?
NFTs or non-fungible tokens are digital assets bought and sold online. They represent real-world objects like art, videos, in-game items, and music.
Many people think of NFTs as mainly artworks, but that’s only one type. They can be snippets of sound, code, text, or poetry.
In a world becoming more digitally focused than ever before, NFTs have benefits in that they:
- provide a unique form of ownership
- provide a more efficient way to manage digital assets
- help reduce the risk of fraud
Are NFTs the Same as Cryptocurrency?
NFTs are built with the same technology as cryptos and are recorded on blockchains, but that’s the extent of the similarity.
Fiat and cryptocurrencies are fungible, meaning they can be exchanged or traded for each other as they’re equal in value. Forget currency fluctuations and crypto volatility; one dollar is still one dollar.
NFTs, as per their name, are non-fungible. Each one has a unique digital signature meaning they’re not equal to each other or anything else.
NFTs and Belgium
Belgium has a long history of trading and collecting physical art objects. With its innovative approach to industry, it was a logical jump into NFTs.
In fact, one of the first NFTs sold in Belgium was a digital version of a painting by the artist Jef Gijbels.
There are numerous websites dedicated to art-related NFTs in Belgium.
One of the most talked about NFTs is the S4m collection available from OpenSea. S4m by sAm is a symbol for a world where gender, race, and religion no longer matter.
Art isn’t the only subject of NFTs in Belgium. The tokenization of physical assets is on the rise.
The three most common uses of digital tokenization in Belgium are:
- real estate: properties can be tokenized
- logistics: waybills are being converted into NFTs
- rare metals: in particular, gold
Some famous Belgians have also jumped onto the NFT train.
Cyclist Wout van Aert has a collection of NFTs celebrating his career milestones.
Footballer Romelu Lukaku is the highest scorer in Belgian history and is now playing for Chelsea FC. His NFT collection showcases his incredible journey.
Speaking of football, Belgian football club Club Brugge plans a series of NFT collectibles to be released shortly.
Nothing is off-limits for the innovative Belgians.
Burger chain Quick sold its secret sauce recipe in the form of a soundwave as an NFT for 7 ETH.
International beer lovers can buy NFTs created from a partnership between Belgium Barrels Alliance (BBA) and Zeromint. This collection aims to help preserve the UNESCO-recognized Belgian beer culture and heritage.
Even Creative Belgium has turned its 2022 awards into NFTs.
If the world of NFTs is somewhere you’re looking to invest, look no further than Belgium.
Book a call with us now to find out what opportunities are available.
The Future of NFTs
Let’s get back to that WSJ story about NFTs “dying.” They’re not! They’re morphing into something much more exchangeable.
Web 3.0 is the future, and it’s coming. NFTs will become the building blocks of this new digital world.
Because they can prove digital ownership, blockchain and NFT assets allow more transparency in the digital metaverse.
How is the world of NFTs changing? In two ways, first, consider who the NFT target market is and what’s next for tokenization.
Who are the Investors?
Who understands cryptocurrencies and NFTs the most? Gen Z! Some Baby Boomers and Gen X-ers are getting left behind by such technological developments, especially fintech.
The timing of digital assets becoming increasingly mainstream is perfect. As younger, digitally native generations mature, these sectors will grow.
NFTs are digital icons of physical entities that are unique and non-identical. These two words alone describe what this demographic is all about.
So why aren’t they taking it up right now?
Consider that if 1997 was the start of Generation Z, zoomers (as they’re nicknamed) are still in their teens and early adult life. As such, they’re not all yet in the position to make huge financial investments.
Notice we said ‘yet.’ Their time is close. Give it a few years, and they won’t be able to get their hands on NFTs fast enough.
Watch out for tech startups headed by entrepreneurial zoomers. They’re the ones to invest in.
NFT Future Examples
If, as the WSJ wants you to believe, that art and other assets will no longer fuel the NFT market, what will? The phrase the opportunities are endless really does apply here.
If you can tokenize something, then it can become an NFT.
So what does the future of NFTs look like?
Retail, experiences, loans, legal entities, content, sports assets, rewards, and even domain names are all directions NFTs are headed.
It’s already here. Famously, Nike has already made $185 million off of NFTs from its digital shoe market. Dolce and Gabbana and Tiffany & Co are also significant players.
What do you buy for the person who has everything? An experience. Whether it’s a sunset camel ride in the desert or dinner on a private island, these activities can all be tokenized.
The encoded utilities will unlock other experiences, such as invitations to VIP events or unique discounts for NFT holders.
As NFTs are assets, the future of secured loans could be right here. Forget property or other tangible assets. You may be able to borrow money against the value of your NFTs.
Asset tokenization is the practice of creating a digital proof of ownership for real-world liquid assets such as capital or property. The aim is to guarantee ownership of assets better, lower the risk, and increase their protection.
Influencers can make money from their content by creating NFTs from it. Loyal fans will only be too happy to own a piece of unique work from their favorites.
Sports is one area where NFTs are already gaining traction. Sports assets like memorabilia and trading cards are perfect examples of assets savvy sports organizations can easily tokenize.
Companies are looking at NFTs as a way to give rewards as tokens of appreciation.
In the entertainment industry, TV series fans can purchase NFTs, which allows them additional perks. These extras can include things like cast meetings, memorabilia, and access to director’s cut episodes.
Forget your .com, .net, and .org. The future of Web 3.0 is .eth. How is it different?
The typical Ethereum address is a long list of alphanumeric characters. The idea behind the .eth is that an ENS domain name is a customized crypto wallet in recognizable words or names.
ENS domains can also be used as standard website addresses and sold as NFTs. Some have already been traded four times, with the highest price paid so far being $2m for paradigm.eth.
For anyone who missed out on the .com that they wanted, look out for .eth.
So there you go, Wall Street Journal; NFTs have a very bright future.
Belgium and NFTs – The Future
In Belgium, the gateway to Europe, NFTs are increasing in popularity. The most used word in new domain names in Belgium in January 2022 was, you guessed it, NFT.
We’ve already mentioned how Belgian sports stars and football clubs have NFT collections.
Real estate can already be bought and sold via NFTs. Blockchain block.immo has listed an office building in Brussels and a residential property in Antwerp.
We’re beginning the NFT journey, and the market is growing. Expect a future where many things will evolve into NFTs.
Opportunities to invest in Belgium are here now. Tech startups headed by Gen Z entrepreneurs are coming, all seeking capital injections.
For tech-savvy investors, this is the time to consider spending money seriously.
At Innovation Park, we can help. We’ve got over 15 years of experience assisting investors in expanding their businesses.
We’re up-to-date on all the projects currently underway, and we have global partnerships with fingers in many pies. We look forward to introducing you to them.
Book a consultation with us today, so we can help your future get brighter.