NFTs (Non-Fungible Tokens) have become a controversial facet of the cryptocurrency universe—most outsiders see them as silly and pointless, and many crypto insiders passionately despise them as a passing fad, a distraction to the true innovation cryptocurrencies offer. However, recent developments show that NFTs could become a powerful ally for non-profits looking to raise donations in the most cost-effective way.
NFTs are essentially a digital item that is given a unique signature which makes it one of a kind and authentic. Sure, someone could right-click and download the image—but the power of the blockchain means that the true owner is never in question. Digital art can finally possess the same level of authenticity and provenance as fine art in a physical gallery. Recently, organizations have turned to NFTs to raise funds for their causes—with great success.
Although cryptocurrencies and NFTs have only been adopted by approximately less than 10% of the U.S. population, most of the small communities that do exist around them are passionate and committed to making positive impacts. For instance, “tipping” is a common practice in cryptocurrency circles—wherein someone voluntarily donates a small amount of cryptocurrency to the author of a piece of content in order to show their appreciation—or just to brighten someone’s day. Many of these communities are not only passionate about collecting NFTs, but making a positive impact with their purchases. It’s easy to see how non-profits could appeal to folks in a space with mottos like “Do Only Good Everyday.”
Plus, joining an NFT marketplace requires a relatively low amount of money, usually less than $100 worth of Ethereum or another cryptocurrency. NFTs can be listed on marketplaces for any price or be put up for an auction. Rather than planning costly in-person fundraiser events, non-profits can leverage their online followings to sell NFTs with a very low start-up cost. NFTs can also appeal to donors in a unique way since they are receiving a special item in exchange for their donation and not just sending money to a general crowdfunding website.
The future of NFTs, cryptocurrencies, and the metaverse is still in question—but if these communities grow and attract more followers, there’s no doubt non-profits will have a powerful and cost-effective new tool to raise funds and change the world.