NFT Marketplaces are incredibly powerful ecosystems that have not been fully tapped by NFT projects. Much of the focus is being listed on third-party marketplaces. While this is a necessity, it ignores the potential for a different type of marketplace. The concept is still new for many projects, but as we move into the future of NFTs, marketplaces will become more niche and community-powered.
Dedicated marketplaces provide NFT communities major value. Projects seeking ways to deliver more value, increase engagement, and fuel growth should be exploring their own marketplaces as a solution. Far too many collections are missing an opportunity to deliver a community hub because they believe massive third-party marketplaces are good enough.
Here are three reasons why dedicated NFT marketplaces are the new alpha…
Every NFT project has varying goals and visions for their collections. The one factor that unites all great projects is the need to incentivize community members. Whether inspiring new members to join, existing members to engage, or all members to remain a hodler, community focus is critical to success.
A dedicated marketplace can appeal to all of these members. There will always be the fun collectors that are there for the good times and art, but financial incentives often motivate the most. When smart collectors see a unique marketplace as the hub of a community, they will have more confidence in the economic potential and long-term vision.
One of the clear benefits of a community owned marketplace is the ability to consistently reward participants. The platform will retain the ~2.5% transaction fee that is lost to external marketplaces. This fee can be redistributed or used to reward active community members. The result is an incentivized community, creating more sustainable growth and even network effect as more members join.
Die-hard NFT collectors are seeking a new experience. They want to be a part of something bigger than themselves, and engage with a community that shares in a vision for the project they support and desire to grow everyone’s value.
Delivering an incredible experience in Web3 requires a virtual home for participants to gather, engage and grow. Within the NFT space, an ecosystem built around a marketplace is perfect to inspire these actions from your community. So much of this space is driven by buying, selling and trading. Creating a home away from home for participants to take these actions while elevating them to fuel exploration, creation and connection can be transformational.
When relying on third-party platforms for this experience, projects are losing engagement and communal value. Perhaps your project started with a customized minting site, but after mint, all new members engage through irrelevant marketplaces and social channels. These platforms are siphoning your community's value, which can slow adoption. Full-cycle experiences are made possible through a customized and branded marketplace, maximizing the potential of a project long term.
User generated content (UGC) now fuels engagement on the internet, representing 39% of content consumed by Americans. YouTube, TikTok and Instagram have transformed the distribution process for creators, enabling the creator economy to grow massively over the last several years.
NFT projects that launch their own marketplace can start tapping into this massive economic opportunity for themselves and their community. Inspire fan art, videos, graphics, music, blogs and more through an ecosystem that enables its members to create and grow the value of these assets related to your project.
As a collector, when joining a new community it can be difficult exploring everyone’s contributions and gauging the community’s involvement. This is because everything is fragmented, with twitter feeds, discord channels and telegram groups. An official community collection hosted on a dedicated NFT marketplace will showcase the strength of your community while empowering them to create, monetize and resell their work.
NFT marketplaces are incredibly dynamic and empowering platforms when used to engage a community. Throughout history marketplaces have served this function, creating a space for not only economic empowerment but community building and collective experiences. Now, as we move further into virtual worlds, marketplaces will continue to represent these values.
The web3 space is still new, and we are all learning how to best develop and grow. For us here at Liteflow, the path is clear. Marketplace infrastructure and tooling is one of the most impactful elements of blockchain technology. We are witnessing new projects that amplify their brand by implementing dedicated marketplaces.
This is what Liteflow is fully dedicated to, helping businesses to start building. We are focused on making it easy to get an NFT marketplace up and running with no technical expertise required. So if you’re building in Web3, just reach out and let’s bring your ideas to life!