‘Open Edition NFT’ are three words having helped creators to make their digital assets accessible to their audience.
Still journey deeper into the digital age, the Open Edition NFT stands as an exciting variant of the standard NFT, presenting new opportunities for brands. The distinction of Open Edition NFT from typical NFT sales can be harnessed to serve brand objectives.
What is an Open Edition NFT?
To begin with, Non-Fungible Tokens represent a unique piece of digital content owned by an individual and are stored securely on a blockchain. They’ve been used to sell a variety of content, from digital artwork and music to PFP, services and virtual real estate, fundamentally reshaping the way we assign value to digital objects.
Open Edition NFTs, however, diverge slightly from this path. These tokens don’t follow the one-owner rule. Instead, they can be owned by multiple individuals within a specific period. This contrasts with the more familiar “limited edition” or “single edition” NFTs, which are sold in finite quantities. By facilitating unlimited ownership, this type of NFT break down barriers to entry and make participation in the digital economy more democratic.
The unlimited nature of Open Edition NFTs democratizes access to these digital assets, creating a paradigm shift in how we understand the value of digital art and assets. It’s an antithesis to scarcity-driven value, and it holds significant potential for brands.
Some Varieties of this concept:
According to Opensea, Open Edition sales are a flexible format, allowing creators and brands to tailor and adapt their approach to fit their unique needs and goals.
Time-Constrained Open Edition Sales: One type of Open Edition sale is defined by a set timeframe. Within this period, users have the liberty to mint an infinite number of NFTs from a given collection. However, once the time window closes, the minting process is terminated, resulting in a fixed supply of NFTs from that specific minting event.
Generative Art Open Edition NFT Collections: Another interesting variation within Open Edition sales integrates generative art principles. Generative art refers to artworks crafted using algorithms or other computer-driven processes that alter an original piece. When a collector mints an item from a generative art collection, each minting yields a unique piece, distinct from all others within the same collection. An exemplar of this approach is the “Crowd” collection by Creature World.
The significant difference between Unlimited NFT Sales and other NFT Sales
Regular NFTs are often seen as scarce digital assets. Their value lies in their uniqueness and non-reproducibility. The digital artist Beeple’s artwork for instance, “Everydays: The First 5000 Days,” an NFT, sold for a mind-boggling $69 million.
In contrast, Open Edition NFTs focus on accessibility and collective ownership over exclusivity. Their worth is not associated with rarity, but rather the shared ownership they encourage. This accessibility opens up opportunities for a wider and more diverse audience of collectors and even those new to the NFT investment scene.
The Open Edition model allows a wider net of participants to own and interact with these digital assets, disrupting the status quo of digital asset ownership. They allow for unlimited ownership of a particular asset within a given time frame, meaning that the value of these NFTs lies not in their scarcity, but rather in their universality and the joint ownership they facilitate.
Magnificent Garden #47 was minted by @CollinaCleo_nft
Thank you for collecting!
— Iuliia Art 🇺🇦 (@iuliaartprofile) July 18, 2023
An exemplary demonstration of these type of NFTs is the artwork “The Merge”. Unlike traditional NFT sales where a single entity purchases the token, “The Merge” flipped the script. It was sold for a staggering sum of $91.8 million via Nifty Gateway, not to a single buyer, but to a whopping 29,983 individuals. The artwork was split into 312,686 digital tokens, distributed amongst the buyers, embodying the inclusive spirit of Open Edition NFTs.
However, one of the key challenges with Open Edition NFTs lies in their unpredictability. The resale value of an Open Edition NFT is challenging to forecast prior to the conclusion of the minting event because the final supply is uncertain until the minting concludes. In situations where the minting event attracts a large number of participants, resulting in a considerable supply of NFTs, sellers might find it challenging to locate a willing buyer.
Brands and Open Edition NFTs: A Match Made in Digital Heaven
Brands can leverage Open Edition NFT sales in several ways. These sales allow brands to reach a broader audience. Unlike traditional NFTs, which are often priced high and accessible only to the affluent, Open Edition NFTs are typically more affordable, allowing a more extensive customer base to participate in the digital economy.
These unlimited NFTs enable brands to create a sense of shared ownership and community. When countless people own a digital representation of a brand, it fosters a sense of connection and loyalty that traditional branding strategies struggle to achieve.
The NBA’s successful foray into the NFT realm with their Top Shot product is a great illustration. This platform offers fans the opportunity to purchase officially licensed NBA highlight clips. In just a few months, the NBA Top Shot has generated over $500 million in sales, proving the efficacy of the Open Edition NFT model in fostering fan engagement and brand loyalty.
While profitability of Open Edition NFTs might be a concern for creators due to the typically low entry price and the potential for limited investor interest, these factors do not necessarily equate to lower profitability. The unlimited NFT minting event from a well-known creator and brand, combined with affordable prices, can draw significant participation, potentially leading to a high-profile event.
Furthermore, brands can make use of Open Edition NFTs as a part of their Corporate Social Responsibility strategies. For forward-thinking brands, Open Edition NFTs represent a unique opportunity to engage with audiences and redefine traditional branding strategies.
Open Edition NFTs open up a new horizon for brands to partner with digital artists and creators. These collaborations can result in unique digital merchandise that resonates with the younger, tech-savvy demographic, offering a fresh avenue for revenue generation and brand promotion.
Embracing the NFT Revolution
In a world that’s rapidly going for Web3 activations, embracing the Open Edition NFT wave could very well be a brand’s passport to novel growth. By democratizing digital ownership and cultivating a sense of community among consumers, brands can leverage this unique opportunity to create stronger bonds with their audiences.
Companies must remain agile, recognizing and capitalizing on emerging trends. By doing so, they can not only reach new audiences but also foster stronger brand loyalty, provide value to their customers, and ultimately stay ahead in the dynamic digital marketplace.