Web2 to Web3: The Importance of Utility for Long-Term Success

In recent years, the world of NFTs has grown in popularity, with many companies launching NFT projects in the hope of creating a new and exciting way for people to collect, trade, and own digital assets. However, many struggle to find a utility that provides enough value to justify their existence. In this article, we will look at why the utility of a project is important in determining its value and stability, as well as how starting as a Web2 company can help ensure a project's long-term success in the NFT market.

Utility Is Important: Utility is an important factor in determining the value and stability of an NFT project. An NFT project is only useful if it offers a tangible benefit for owning an NFT, such as exclusive access to content, in-game use, community involvement, or other distinguishing features. Without a clear utility, an NFT project is nothing more than a digital asset that is difficult to distinguish from the countless others on the market, making it less likely to gain traction and find success.

Popular Utilities: NFT projects can provide a variety of popular utilities as a tangible benefit for owning an NFT. Among the most popular are:

• Staking allows NFT holders to earn rewards based on their stake in the project, which increases its value over time.
• In-game use: This gives NFT holders a one-of-a-kind and valuable item to use within a specific game or application.
• Participation in community events, contests, and other activities: This allows NFT holders to be a part of a larger community and participate in events, contests, and other activities.
• Exclusive access: This gives NFT holders first dibs on content, merchandise, or other special features.

Popular Utilities Have Limitations: While these popular utilities can provide a tangible benefit for owning an NFT, they also have limitations. For example, if an NFT is linked to a specific game, its value decreases as the number of players in the game decreases. This is because the NFT loses value as the utility it provides diminishes.

Why Starting a Web2 Company is Critical:

To ensure long-term success in the NFT market, a project should begin as a Web2 company and integrate NFTs into its product or service. This provides a tangibly beneficial benefit for owning an NFT, as well as a solid foundation for the project's future success.

NFT projects can provide a clear and valuable utility that can withstand the ups and downs of the NFT market by beginning as a Web2 company. This contributes to the development of a stable and sustainable ecosystem that provides long-term value to NFT holders while also laying the groundwork for the project's continued growth and success.

Finally, the utility of an NFT project is critical in determining its value and stability. NFT projects that offer a tangible benefit for owning an NFT, such as in-game use, community involvement, or exclusive access, have a better chance of long-term success. Beginning as a Web2 company and incorporating NFTs into its product or service can lay a solid foundation for a project's success and ensure its long-term viability in the NFT market.