NFTs or non-fungible tokens are unique, one-of-one digital assets that allow one to verify ownership of anything that is digital – via the blockchain tokenization process.
NFTexplained.info is a team of long term crypto investors who are well versed in the NFT and crypto space; we have the goal of providing valuable, educational content.
NFT sales have been making headlines (e.g. Beeple’s piece which sold for US $69 million). This begs the question: who are the people purchasing these digital assets?
As a general statement, people of all ages, and from all ethnicities are buying NFTs. More specifically, people who are native to cryptocurrencies and have a better understanding of the blockchain tend to be the ones purchasing NFTs. Millennial investors tend to be the most active in the space.
NFTs are a new medium for creators to explore. With an Internet connection, a digital wallet, and some cryptocurrency, anyone is able to purchase an NFT. Even large, publicly traded corporations such as Visa have bought a CryptoPunk – which is widely considered a blue chip NFT.
We have also seen many celebrities getting into the space – Justin Bieber, Serena Williams, Odell Backham Jr., and Mark Cuban – amongst many others.
Crypto native entrepreneurs like Justin Sun have created the ‘JUST NFT Fund’ which has the purpose of registering world class art on the blockchain. The fund has purchased works from Pak, Andy Warhol, and Beeple. His fund holds over US$ 30 million worth of digital art.
These people – especially those purchasing digital assets for millions of dollars – may slightly differ from the average person… this begs another question: who is the target market for NFTs? Our team will dive into that in our next section of our article.
Who Is The Target Market For NFTs?
Before we dive into this answer, we must first define a target market. A target market is often understood to be the people who are purchasing a certain business offering; these people often have the same or similar characteristics.
While anyone can purchase an NFT, the target market is primarily those who are risk tolerant investors and tend to be wealthier. Due to challenges of purchasing an NFT, the target market is often millennials who understand how cryptocurrencies work and are willing to purchase risky assets.
While it is possible to purchase NFTs using fiat (by connecting a credit card), few transactions have taken place in this manner. More commonly, buyers have an understanding of the blockchain which often means they hold some amount of cryptocurrency.
Many crypto whales (someone that holds a large amount of a particular NFT project or cryptocurrency) have been known to purchase multiple NFT in a collection, which makes the floor price rise. Since they hold a lot of cryptocurrency, using it to get some exposure to an NFT collection – that may greatly increase in value – is quite common.
As NFTexplained.info previously mentioned, the cognitive overhead and time involved in setting up a digital wallet and connecting it to an NFT marketplace like OpenSea are why crypto native people are the ones who are more commonly buying this type of asset.
The target market is likely to change as NFTs see more mainstream adoption and as more affluent investors – meaning those who may be buying vintage cars, luxury wines, or expensive art – venture into this space (primarily as a way to diversify their portfolio and as a way to store value).
Now that you have a better understanding of the people buying NFTs, you may be asking yourself: if I create an NFT, will someone buy it? NFTexplained.info will provide some of our insight to address this question.
Will Someone Buy My NFT?
As a general statement, it is entirely possible that someone will purchase your NFT; however, it’s unlikely to sell if it’s not created by a reputable creator who provides utility, and may make the NFT appreciate in value.
NFTexplained.info has mentioned that selling NFTs is not the easiest venture and not a way to get rich quick; more on that can be found in our article titled the difficulties of selling NFTs and how to mitigate them.
While it is true that the space is growing at an astounding rate and that people often look to support artists creating one of one works, it is still a challenging venture to succeed in.
Learning new aspects like coding smart contracts and understanding the way to market yourself and your NFTs on social media are crucial skills to be successful in this space. Our team had the chance to gather insightful tips from famous creators who gave us practical, actionable guidance on how to be successful selling NFTs; that article is linked here.
Unfortunately, simply listing your NFT on OpenSea – currently the largest NFT marketplace – is incredibly unlikely to result in a sale. As an analog, imagine listing your hand-drawn sketch on eBay… while it’s possible it will sell, especially if you are tremendously gifted or already famous, the likely outcome is the listing will not result in a sale.
To conclude our article we will examine the countries that buy the most NFTs.
What Country Buys The Most NFTs?
It has been reported that Asia has seen the greatest NFT adoption, more specifically the Philippines. This is likely due to the adoption of play to earn NFT-based games like Axie Infinity where SLP (the in-game currency) can be exchanged for fiat.
It has been reported that close to 40% of Axie Infinity users – which recently peaked at nearly two million every day – are from the Philippines. If you would like to learn more about the play to earn phenomenon that is Axie Infinity, click here.
If you are interested in learning about SLP – the in-game currency, click here.
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