This guide will examine a new upgrade to NFT called NFT Token Offering (NTO). Will it redefine the world of NFT? Or is there more to this token distribution method? Let us delve into a thorough examination of what NTO really is.
The inception of non-fungible tokens (NFTs) created a lot of hullabaloo in the blockchain space. Many critics regarded NFTs as mere digital pictures or artistic work with no market value. Although NFTs were invented to solve ownership and authenticity issues, these critics believed anyone could screenshot an NFT for use. In a short time, NFTs became very valuable and dominated the blockchain/crypto space. Besides this, the utilization of NFT evolved as more use cases surfaced. Notably, NFT sales spiked by over 21,000% in 2021, generating a revenue of approximately $17 billion.
Despite all these remarkable features, NFT faced quite a lot of issues. These challenges range from distribution, value depreciation, hacking, and much more. In 2022, NFT sales slumped drastically to around $466 million in sales. Due to the prolonged bearish market, creators could not regulate NFT prices as owners sold NFTs at lower prices. This guide will examine a new upgrade to NFT called NFT token offering (NTO). The reviving innovation would affect the distribution and value of NFT by generating a high income from primary and secondary sales. The premium question is: will NTO redefine the world of NFT? Or is there more to this token distribution method? Let us delve into a thorough examination of what NTO really is.
NFT Offering (NTO) Defined
NFT token offering (NTO) is a distinct kind of token distribution often accompanied by NFT minting, which aids secondary sales of valuable tokens. This new distribution method utilizes a new asset concept termed overcollateralized NFTs. The mechanism behind NTOs aims to revitalize the slumping cryptocurrency market.
The use of NTO attaches a fixed price to NFT, thereby providing a mild price regulation. Invariably, NTO gives NFT creators immunity against irrational sellers as well as a bearish season. Henceforth, NFTs will have a better secondary market value.
How NTO Was Created
NTO was created by Choise.com, a top crypto marketplace founded in 2017. The platform is a unified ecosystem where investors can explore a galore of financial strategies needed to earn from digital assets. This provides investors with the best financial product alongside a high ROI. Besides this, investors escape the stressful rigor of conducting technical analysis on such assets. They can trade assets without any knowledge of the current market direction. This approach mitigated the common TA challenge faced by promising investors and traders.
Choise.com’s new initiative introduced a new dimension of tokens and distribution of NFTs in the crypto market. The crypto platform unveiled its maiden edition of NTO called Chobies NTO collection. Hopefully, the release will mark the beginning of a new trend in the crypto market. The launch of the Chobies NTO collection illustrates how tokens can back NFTs with real value. Choise.com plans to split the launch into six different types beginning with the minting stage. Within this launch, every successive step increases the price by $50. This method extremely simplifies the accessibility of NFT prices and the effective way of managing price fluctuations. NTO campaigns under the tag “The NFT is dead, long live the NTO.”
NTO vs ICO
Before the introduction of NTO, there were ways of distributing tokens. These methods include initial DEX offering (IDO), initial coin offering (ICO), security token offering (STO), and initial exchange offerings (IEO). IDO, which is the most recent distribution method, differs from NTO in terms of the integrated token. While tokens offered by NTO are already traded on the market, tokens on ICO are not.
Apart from this, the NTO distribution method comes with perks, bonuses, rewards, and lots more. NTO eliminates the previous method for brand-new mechanics where investors enjoy low investment risks. Another spectacular standout for NTO is the availability of financial licenses for its backed assets. In most cases, ICO turns out to be rug pulls carting away with the investors’ funds. NTO simultaneously allows a company with good tokenomics to raise funds for products and settle market players’ desires. In a few years to come, the massive adoption of NTO will liberate a new market trend in the NFT space.
The NTO Benefits
The revolutionary entry of NTO comes with a chain of benefits for the blockchain space. Every odd method of NFT distribution and sales would be discredited and replaced with a spectacular mechanism. Here are some of the benefits of NTO:
- NTO introduces a new phenomenon of possessing already traded tokens in an NFT. This innovation is the first sale of overcollateralized NFTs in history; Purchasing such an NFT gives a buyer an extra value for the asset.
- The token distribution of NTO is well organized and innovative with its approach. In this distribution, every digital item is filled with valuable tokens. NTO is discounted 3,4, or 6 times off the initial prize of the gems attached. Imagine the significant gain obtained from purchasing NFT distributed by NTO!
- Aside from this, NTO owners can win massive cash prizes, rewards, etc. Owning NFTs distributed using the NTO mechanism serves as raffle tickets to share in a prize pool. For instance, the Chobies NFT collection has a prize pool of $5 million for minters only. About 20% of the collection offers cashback coupled with cash prizes of up to $100,000. Ultimately, Chobies NFT owners stand a chance to win a Lamborghini Spyder and a Tesla caThe original NFT creator eternally receives 5% of every successive sale as royalties.
- Interestingly, NTO secures high profitability for owners who plan to sell their assets. These resellers will earn massive gains because NTO provides a valuable secondary market sale and other royalties.
- With the help of NTO, blockchain companies can expand their communities and grow their investment. More people will troop into a community where royalties and other bonuses are distributed irrespective of the market condition.
- Ultimately, the use of NTO will foster the organization of token sales in the NFT community. Many NFT projects have locked their wares for a certain duration to prevent unregulated sales from investors. Such selling pressure devalues the price of the project’s NFT.
Among the several challenges found in the NFT space, price regulation is taking shape with the invention of NFT token offering (NTO). This innovation will be beneficial to both the creators and investors. While projects would not fret about market manipulations, investors would be assured of earning from their investments. The development of innovations like NTO will keep on increasing the productivity and usability of the NFT space.
In a short time, this promising distribution method could become a yardstick for the entire market and several blockchain companies. NTO will ease the organic growth of blockchain communities where members enjoy great incentives. It would also resurrect the crashing NFT space far beyond its previous feat. Notably, the successful launch of NTO will provide a new way of generating funds for blockchain companies.
There might be some other advanced usage of NTO beyond the creator’s periscope. It is cool to have another blockchain solution to a long-lasting challenge. Above all, NTO will breed more trust among NFT market participants.