Many people associate NFTs with digital items because they give you ownership of JPEGs, game skins, and other digital assets that have largely lacked physical ownership. That being said, NFTs are increasingly being used with real-world events such as concerts and sporting events to make them more profitable for promoters and more valuable to attendees.
This will explore the pros and cons of turning all events into NFTs. The process itself is fairly easy for event planners, but is it truly worthwhile? Let’s find out.
Pro: Collectability and Proof
While NFTs have largely been used to prove ownership of digital assets, this can go far beyond the computer and internet. Think of the memorabilia people collect for concerts and sporting events. For example, there is a market for vintage sporting tickets both used and unused.
While many of these tickets aren’t worth much, those for culturally relevant events can go for hundreds, thousands, or even more. Perhaps the biggest example is an unused ticket for Michael Jordan’s professional basketball debut. This ticket sold for $468,000 in 2021.
What does this have to do with NFTs? An NFT is like a digital version of this ticket. It might be a digital file, but it’s still a collectable item. It proves that the original owner of the NFT was there and they experienced the event. For collectors, it can be a new part of their collection.
This adds a whole new level of merchandising and collectability to events, and it’s a very easy way for people to prove what events they witnessed and saw. Much like looking at a signed baseball or old foam finger, this is an item that is associated with that event forever.
Unlike most other digital items that can be easily ripped or saved with ease, an NFT cannot be replicated. That means that there are only a limited number of them, which is essential for true collectors and lovers of the event.
Con: Current Low Interest
This might change as attitudes about NFTs evolve, but currently there is a good chance that attendees don’t have much interest in NFTs. Many people either don’t know what NFTs are, how valuable they can truly be, or feel they are a scam because they don’t understand crypto in general.
Now this largely depends on the event. If we’re talking about a football event or concert for a mainstream pop artist, then chances are that most of the attendees won’t understand why NFTs are so good. If we’re talking about an event for technology or crypto, then chances are that attendees will understand and love having an NFT of the event.
Right now there is little interest in NFTs for the mainstream audience, but just like with other forms of crypto, this interest is growing. It won’t be long before NFTs are mainstream knowledge and people are begging to get them. Making events NFTs now would give early adopters a way to gain very valuable and rare items before they are used for every event.
Pro: VIP Items and Privileges
Piggybacking off the last point, what if some of the audience is interested in NFTs but others aren’t? Or what if you want to garner more interest in NFTs? Some people will be happy enough to have the NFT in their collection, but others need more real-world advantages to buy-in to this crypto.
Some event planners are using these as part of their VIP packages. Not only do VIP attendees get NFTs, but these NFT owners get special privileges that other attendees don’t get. For example, they might get special items and memorabilia, be able to meet the musicians or athletes, and enter restricted areas that regular attendees aren’t allowed to.
Not only does this increase the chances of people being interested in NFTs, but it can also increase the value of the NFT after the event. While those who purchase the NFT later won’t be able to enjoy the VIP benefits at the event itself, this tends to make the NFT more valuable and rare.
Con: The Wrong Crowd
This already happens with scalpers, but it’s a new way for those people to take advantage of others who want to enjoy the event. Some event planners might find that people rush to buy tickets just to get associated NFTs. They might then sell the tickets and NFTs separately for extravagant prices.
This might also create confusion if the NFTs are associated with privileges. Someone might buy a VIP ticket, but not have the VIP NFT needed to reach certain areas or meet the musicians or athletes. Plus, there might be people who try to fake the NFT and gullible people might buy them (similar to buying fake tickets).
While this is a possibility, the truth is that this happens with nearly any new type of memorabilia along with existing ones, so that shouldn’t stop you from making or buying NFTs. This already happens with tickets, hats, shirts, and so many other items. There will always be fakes, but you should have no problem finding the real deal.
Pro: Empower Everyone Involved
Almost everyone involved in the NFT, from the attendees to the event planners to the creators, will be empowered by NFTs. This has spawned new markets where NFTs can be traded and sold, and both planners and creators have a new way of generating revenue and royalties.
This also gives people true ownership of a piece of the event. Even if the NFT is never sold or traded, this gives people the opportunity to see all the events they went to and what they have enjoyed. It’s amazing for collectors or anyone who loves going to concerts, sporting events, or anything else.
Final Thoughts
While there are pros and cons to making all events NFTs, there are more pros than cons. As adoption grows and people understand the benefits, it’s expected that NFTs will become a common item for event goers to buy and collect. It’s best to get in early to enjoy rare NFTs or to get ahead of the market.