What is PFP NFT and why is it hot?
Non-fungible tokens (NFTs) went mainstream thanks to the rise of CryptoPunks in 2021. Get to know how their brand made Profile Pictures (Avatars) explode in popularity!
2021 was a damn good year for the NFT market, and the implosion of digital art has inspired many companies to adopt the trend and tokens into their ecosystem. “PFP” has been a buzzing word for quite some time, especially since January, as Twitter introduced proof of ownership on their platform for NFT collectors - but is it still hot and will continue to be?
What are PFPs anyways?
The whole domain of non-fungible tokens is still in its infancy stages as both the investors and speculators are waiting for more considerable adoption before blowing all of their money out.
One side is persuaded slightly as so-called “Utility” NFTs offer significant traits with a facility of rewards, specific features, or opportunities for the owners to exercise.
However, some people are incredibly skeptical of Profile-Picture NFTs (or PFP), which offer no real utility outside being a proof of ownership for storage on a blockchain.
But it is essential to mention that PFPs became extremely recognizable to achieve influencer status. Because of this, many people stopped caring about the utility and embraced that simply by having a profile picture up, you verify yourself as a member of a particular community and join the exclusive club of owning fabulous material (limited edition) together with Jay-Z, Snoop Dogg, and the Big Shaq.
But even today, some people will never see the actual usage and idea behind NFTs. More than 30% of individuals are NEVER going to own an NFT. You can find more detailed study results and interpretations in our previous blog post right here:
Why should you own it?
First of all, this feature allows people to show how truly the NFTs work outside the blockchain system. Only people with limited knowledge and vague integration understanding can say that NFTs are stupid and just a plot to grab some money.
It is the same as owning a piece of real-life art of limited supply and rare traits, just with a digital ownership certificate - screenshotting and displaying it on a snipping tool is not the same as owning it.
Secondly, fashion is starting to dress them up and add further clout to their respective brands. For instance, sportswear giants like Athleticwear unveiled digital apparel accessories that were gifted to 888 holders of their NFT series. Recipients receive the option and right to upgrade their PFP by dressing it in new champion-themed cosmetics and items.
In another instance, Adidas partnered with Ape Closed to enable every Bored Ape to dress in Adidas apparel. These two are just a few examples where, unlike real-life limited edition art, one can upgrade their digitally owned treasure with premium features, driving its value even higher. In addition, it has massive potential for famous brand participation.
Thirdly, NFTs offer a more open, level playing field. If you can get in early on a successful project, you stand a chance of purchasing valuable work at a low price. Trade that works or uses it to mint derivative pieces, and you have the beginnings of an enviable collection. There’s no gallerist to vet your credentials—in fact, all the certificates that matter are visible on the blockchain.
This and many other features like being a part of a massive community, private communication channels, and being labeled the same as other celebrities holding a similar asset feel majestic.
What does the future hold for these projects?
Using NFTs as Profile pictures started on the Ethereum blockchain in 2017 when 10,000 unique avatars called CryptoPunks were minted and shared for free. These NFTs were just collectibles initially, but crypto blockchain enthusiasts began using them on social media to symbolize their unconventional and pseudonymous identity with the crypto community.
With more than 350 million users worldwide, Twitter is heading to the lane first with massive PFP adoption. Hexagon verification is getting extremely popular, and WEB 3.0 integration is gaining momentum even during a bear market.
In other instances, META (formerly Facebook) is adding NFTs to Instagram. At the same time, Harmony has launched a cross-chain NFT passport that enabled BAYC holders to show off their assets in a popular play-to-earn game, Defi Kingdoms.
As more mainstream companies continue to release updates associated with NFT utilization, one can be sure that metaverse expansion and upcoming positive market upturn will add additional steam to this trend.
The divide between NFT fanatics and haters is huge - some say it's a sell of a product without even listening to what actual users and buyers and saying. At the end of the day, owning a real-life art does seem more valuable and prominent than a digital picture that was probably created rapidly via simplistic software.
On the other hand, even brands like Louis Vuitton emphasize that it is only a matter of time that people start paying attention not only to external looks, but also your digital world style and name.
People look to a future where people will seek to differentiate themselves, and express their identity, in new environments, and - fund the art creators for their magnificent work.
It is up for you to choose which side you are going to support next, but DEXterlab is keen on supporting the digital community and entire metaverse, cryptocurrency world!