Have you ever wondered why NFTs like the Bored Ape Yacht Club (BAYC) and the VeeFriends NFTs are worth hundreds of thousands of dollars and even millions? That’s because they are utility NFTs.
Utility NFTs are NFTs with valuations based on the access, perks, and opportunities they provide to the holders. So instead of valuing how cool and attractive the art is, utility defines its values. In the early stages of the NFT space, NFTs were purchased because of how unique and cool the arts were and the ability to flip those NFTs for double or triple the price they were bought for.
On the other hand, utility NFTs offer more than just the uniqueness and profits that comes with purchasing NFTs. The holders of these unique NFTs get access to exclusive experiences which can include access events with celebrities/athletes, premium contents and membership to special fan communities.
NFT projects with utility have started to outperform those without utility because of their potential and the vast opportunities and access the give to the holders of the NFTs. Here are two examples:
Bored Ape Yacht Club (BAYC)
Bored Ape Yacht Club (BAYC) is a collection of 10,000 NFT Apes, each with unique traits. Some of these NFT Apes have rarer traits than others meaning that collectors place more value on them. Bored Ape owners can participate in exclusive clubs and areas of the BAYC. This includes first access to new NFTs, NFT upgrades, and other perks.
VeeFriends
VeeFriends is a project created by Gary Vaynerchuck. Owning a VeeFriend gives you access to multiple years of VeeCon, a multi-day conference with iconic keynotes speakers, Q&A sessions, and much more. While the artwork itself may not look really cool and attractive like other NFT artworks, the VeeCon tickets actually have some value. Something fascinating about the VeeFriends is that the NFTs attain their value from the access to VeeCon instead of the artwork itself, thus making the artwork a subjective, insignificant part of the project.
Utility NFTs are broadly classified into the following categories:
• Community NFTs
• Fantasy Sports NFTs
• Gambling NFTs
• In-game NFTs
• Social NFTs
Utility NFTs are the next big thing, based on user demands and the broad range of practical NFT application they offer. Owning a utility NFT can grant you access to exclusive experiences, early access to new NFTs and upgrades, airdrops, invites to exclusive events and lots more.