By Vishakha Singh
With an increase in the conversation around crypto and NFTs, there is a growing awareness on the multiple use cases of NFTs. Gifting NFTs is the latest edition to the long list of how individuals, brands and corporates are leveraging blockchain technology. There is change undergoing from material gifts to digital ones; especially on blockchain.
There has been a cultural shift in terms of how gifts are perceived. There are plenty of things to be considered before gifting. Traditional material gifts are perishable in nature and they lose value over time. Traditional methods of gifting have taken a back seat in the pandemic owing to physical dependencies, thus giving rise to needs of digital assets which are gaining popularity in this post pandemic era. NFTs and crypto are emerging as an alternative gifting idea.
During holidays, festivities and celebrations, most people struggle to find the perfect gift for their family and loved ones. Although the traditional mithai ka dabba still remains popular in India, the gifting of digital collectibles is becoming widely acceptable amongst the younger generations comprising Gen Alpha, Gen Z and millennials. The popularity and value of non-fungible tokens have exploded this year. But not everybody has gotten on board, and many people still aren’t quite clear on what NFTs even are.
Non-fungible tokens (NFTs) represent digital ownership of an asset, such as pieces of art, memes, videos, images, audios, etc. You’ll find everything from viral sneaker designs to Manish Malhotra’s hand-drawn sketch of his most popular creations in the form of NFTs. There is something for everyone.
The multiple benefits of gifting NFTs outweighs existing e-gifting. These benefits are for both giver and receiver. In the process of buying the NFTs, the giver learns about the latest advancement in the tech space, i.e. the blockchain technology. The receiver of the gift (NFT) now has an asset class that appreciates over time. He/she enjoys NFTs in perpetuity, earning a lifetime of royalty in case they decide to sell it in the secondary market. And most importantly, they have the social media bragging right that they have the ownership to.
Ways in which you can gift NFT:
Gifting to a coiner (a person who owns crypto currency/coins) :
- Top up their wallet
- Transfer their favorite NFTs based on their interests
- Gift NFTs on the basis of utility (like passes to music fest/events along with NFTs)
Gifting to a non-coiner (a person who doesn’t own any crypto coins):
- Create their metamask wallet (Akin to setting up a young adult’s bank account in order to prep them for future banking) and helping them buy their first NFT or simply transfer one to them and teach them to list in the secondary market.
The future potential of NFT gifting
According to Technopak, the total size of the Indian corporate and personal gifting market combined is Rs 250,000 crore. The online gifting industry in India is projected to grow from $119 million in 2019 to $159 million by 2025.
1000+ NFTs have been gifted from 1st Jan 2022 till date on WazirX NFT Marketplace. A growing number that we need to keep a close watch on.
With Crypto and NFT adoption growing at a neck breaking speed, NFT gifting has the potential to create a sizable parallel gifting industry on blockchain. NFT gifting will become a fundamental part of blockchain relationships and WazirX NFT marketplace is changing how it occurs.
(The author is VP, WazirX NFT marketplace. Views expressed are personal.)