A very common question for NFT newbies is why are people paying so much for NFTs? The reason lies in a few domains.
1. Rarity - Within a collection, some items are more valuable than other items due to their rarity. This draws in people's attention because it creates a sense of excitement that they might be able to mint a rare item!
2. IP rights - Rights exclusive to NFT holders of that collection. Some common rights include displaying or modifying the art piece, access to special content, and transfer or sell your rights.
3. Utility - One of the biggest part of the NFT space. Utility ranges from membership to clubs and contents, season tickets or concerts. It can be anticipated that only more will come!
4. Community - Community building is another fundamental part of the NFT space. In order to build a strong community, a solid value proposition is essential. With this, you will have a team of dedicated brand ambassadors who will advocate for the project to potential investors passionately.
5. Income Generation - Some projects now share profits from fundings and secondary sales with holders. One thing to be aware of is regular, stable profits from one collection may invite legal scrutiny.