Introduction
2021 was the year we witnessed the significant growth of NFTs. This growth resulted in a market with a considerable financial turnover and enough attractiveness for the Market participants and potential customers.
Concerning this growing trend, some markets provide the opportunity to buy, sell or trade unique tokens. Some of the most popular NFT marketplaces, including “Opensea“, “SuperRare“, and “Rarible“, During 2021 could attract the participation of people in this scope of digital assets/Art, along with significant growth in the sales of these artworks.
In August 2021, OpenSea, the most prominent NFT platform, and marketplace surpassed $1B in its monthly trading volume. Some reports assessed the market growth rate as about 286% in only one month between July to August 2021.
What is Initial NFT Offering?
Various companies and projects use initial coin offerings (ICOs) as a reliable and guaranteed way to fundraise for their project. In ICOs, the project developer team usually offers tokens to investors at a discount in exchange for other cashable digital assets.
In this method, if the project becomes successful, the participants in the ICO can benefit from the increase in the price of the project’s cryptocurrency. Recently, we have seen the attention of various people to an event called initial NFT offering or INO, another approach in the blockchain sphere. Just like IDO, INOs also allow projects and creators to have the ability to interact with supporters and the user community by creating (minting) NFTs.
Initial NFT offering means the supply of NFTs produced in the first stages of the project. Therefore, the INO allows participating investors to access the rarest NFT collections available in the projects. The INO solves many challenges the artists and creators face in selling NFT art.
Only1 is the first initial NFT (INO) launchpad. Indeed, Only1 is a new way to provide crowdfunding in the cryptocurrency world and is based on the idea of Initial Coin Offering (ICO). During this process, a limited number of unique tokens will be on a list to sell through the INO launchpad on Only1.
With the increasing popularity of the NFT market, the initial offering of this branch of blockchain-based digital arts is a reasonable solution to motivate and reward investors and various community members.
How INO Works
A large number of NFT platforms are offering INO options to their community members. NFT platforms allow their ecosystem habitats governance which is the right to vote for the project to be listed on the platform and give prizes to the winners. In the first steps, developers of the project release technical documents, plans, and roadmaps to their community, which is an excellent opportunity for creators to promote their NFT collections.
NFT projects sometimes choose a First-Come-First-Serve model or a faster action-based distribution model. Other projects have another choice: the lottery model for fair NFT distribution of the project to motivate people for more interactions in the project ecosystem.
Some Key Benefits of NFT
- Creating community in the initial stages of launch
Only1 is here to assist creators in monetizing and allows NFT fans to connect uniquely and directly with creators they love. This mechanism will enable creators to build their target community, consisting of investors, in the early stages of the NFT project. - Lower Transaction Cost
Each transaction has a fee, even if it is about to sell or buy an NFT. But, in an Initial NFT Offering (so-called INO), the transaction fee is fewer, which encourages investors to benefit more from purchasing more NFTs with lower transaction fees. - Higher Investment Returns
This model rewards the investors in different ways. Investors benefit from the limited supply of the NFT collections and having voting power to participate in the project decision makings.
Conclusion
Alongside the crypto market, the NFT world gets bigger daily. This widespread favor of NFT tokens among people has also put them on the good side of financing for issuance with revolutionary solutions like Initial NFT Offering, known as INO. The advent of the INO almost allows everyone to present themselves to a broader community. Due to the emergence of the initial NFT offering, any NFT artist can raise the financial resource required before making their artworks.