NFTs continue to catch the interest of corporations. The new technology is poised to revolutionize how digital communities are built. Global fund manager VanEck revealed that the firm would be giving out 1000 NFTs.
A Case For NFT Utility
In a tweet on Monday, VanEck notified its followers that it was launching its NFT Community. The tweet read, “It’s here! Launching today, the VanEck Community NFT, the first NFT offered by a global asset manager.” VanEck has described the NFTs in the proposed collection as digital membership cards.
VanEck’s NFT launch stands out not just because it is the first wealth manager to do so but also because of the enormous focus on utility in contrast to the price speculation that usually plagues the market. In addition, VanEck has taken an interesting step to discourage the sale of VanEck NFTs by holders. On the project’s website, the firm informs interested parties that the NFTs “have no value and are not intended by VanEck to ever have any value. … You must not attempt to obtain an NFT from VanEck if you plan to sell or transfer it.”
The VanEck Community NFT consists of a thousand NFTs to be hosted on the Ethereum blockchain. VanEck’s community collection will be classified into three levels, depending on the level of scarcity. The classes are commons (which will total 750), rare (approximately 230), and legendary (approximately 20). In addition, holders of VanEck’s Community NFTs will receive perks, including exclusive invitations to VanEck events. The company’s internal sales manager Matthew Bartlett speaking to CoinDesk said:
“Since each NFT in the VanEck Community NFT is unique and scarce in their own right, the use of this NFT allows us to build an exclusive community where members who hold said NFT are invited to experiences and events where they can network with like-minded investors and crypto enthusiasts.”
The company revealed VanEck’s NFT collection would chronicle the journey of “Hammy,” a fictional character inspired by a US founding father and the first US Treasury Secretary, Alexander Hamilton, to understand the history of finance. In addition, the firm has revealed that the airdrop started on Monday. According to the NFT roadmap, the NFT will grow into an avatar at the end of the month, with unique qualities that will grant special access to VanEck content.
NFT Demand Remains High
2021 on many levels, was the breakout year for crypto and the NFT ecosystem. Popular NFT marketplace OpenSea saw trading volumes surpass $14 billion, a 646x increase over 2020. However, NFT trading this year dropped considerably.
Pundits have stated that this drop is a part of the ecosystem’s maturity as the community now prioritizes quality projects. Moreover, judging from recent happenings, it is clear that the demand for NFTs is far from low. For example, a minting of Otherside land deeds raked in over $300 million, crashed the Ethereum network, and saw users pay thousands of dollars in fees.
VanEck has already launched various blockchain and crypto projects in the past, including one of the few approved Bitcoin futures ETF, the Bitcoin Strategy ETF (XBFT). However, its community NFT launch represents its first venture into the metaverse.