Non-Fungible Tokens (NFTs): Use Cases, Status, Scarcity

Animation of spinning gems

This is the free version of Trends PRO #0050 โ€” Non-Fungible Tokens

Get Full Access to Trends Pro

โ“ What You’ll Learn

  • What are NFTs?
  • What drives the price of NFTs?
  • Who sold an NFT for $75,000+?
  • How are NFTs leading to recurring revenue?
  • How can communities benefit from NFTs?
  • How can creators use NFTs?
  • Who offers social-tokens-as-a-service?
  • How are flippers profiting from NFTs?

๐Ÿ” Problem

Traditional art is hard to secure, sell, authenticate, store, tokenize and collateralize.

In-game items have weak property rights.

Communities have weak alignment.

๐Ÿ’ก Solution

Non-Fungible Tokens represent one-of-a-kind items. 

  • Bitcoins are fungible. Tradable 1 for 1.
  • This CryptoKitty is non-fungible. Itโ€™s 1 of 1.

Physical, non-fungible assets include the Bubble Palace, this 1993 MVP Trophy and Michael Jordanโ€™s โ€œFlu Gameโ€ shoes. There are no equivalents.

Non-Fungible Tokens (NFTs) include:

NFTs are digitally scarce. They are easier to store, sell, authenticate, collateralize, tokenize, value and have stronger property rights than physical assets.

๐Ÿ Players

Use Cases

  • Art โ€” Prove ownership and authenticity
  • Voting โ€” โ€œBurnโ€ tokens to affect change
  • Games โ€” Buy, sell and trade in-game items





NFT Projects

๐Ÿ”ฎ Predictions

  • Creators and communities will retroactively airdrop tokens. RAC used Zora to give early Twitch, Bandcamp and Patreon fans $RAC.
  • NFTs will become cash-flowing alternative assets. Guy J sold royalty rights to โ€œCotton Eyesโ€ for $26,000
  • Projects will piggyback on the success of others with interoperable NFTs. KittyRace and KittyHats build on CryptoKitties. These are two, of many, projects in the KittyVerse

โ˜๏ธ Opportunities

๐Ÿ”‘ Key Lessons

  • NFTs are easier to store, authenticate, collateralize, value, transfer, tokenize and secure than physical assets.
  • Belief drives the price of art and most currencies. Taxes, corporations and nations are also collective hallucinations.
  • Timing and access, not price, are the primary sorting functions of drops. Brands build hype and leave money on the table with artificial scarcity. This is a flippersโ€™ profit. 

๐Ÿ˜  Haters

โ€œNFTs have no utility.โ€
Owning art signals status. NFTs are a new, superior form factor that solves a very old problem. Some NFTs are used to vote and trade for physical goods.

โ€œI can just copy-paste an NFT.โ€
Yes. You can also download mona_lisa.jpg. But do you own it? NFTs sell for hundreds of thousands of dollars. This ship has sailed.

โ€œProof of listening, watching and attendance can be bought.โ€
Yes. And weโ€™ll know whether it was bought or earned.

๐Ÿ”— Links

  1. Who’s bought/sold NFTs? โ€ข The tweet behind this report. 
  2. A Beginnerโ€™s Guide to NFTs โ€ข NFT use cases from art to social tokens.
  3. Trends #0026 โ€” Drop Culture โ€ข Status and scarcity serve the same role in physical and digital drops. 

๐Ÿ™ Thanks

Thanks to John Crain (SuperRare), Chris Carella (Tezos), Linda Xie (Scalar Capital), Paul Martin (Integrity Music), Stuart Sim (FinLister), Abby Barsky (Cord), Aadil Razvi (Demand Curve), Bram Kanstein (No-Code MVP), Ime Essein (HBCUvc), Ethan Jones (Tools for MGMT), Ryan Deiss (, Marty Bell ( and A.J. Lawrence (Beyond8Figures). We had a great time jamming on this report. 

Get Weekly Reports

Join 65,000+ founders and investors

    ๐Ÿ“ˆ Unlock Pro Reports, 1:1 Intros and Masterminds

    Become a Trends Pro Member and join 1,200+ founders enjoying…

    ๐Ÿง  Founder Mastermind Groups โ€ข To share goals, progress and solve problems together, each group is made up of 6 members who meet for 1 hour each Monday.

    ๐Ÿ“ˆ 100+ Trends Pro Reports โ€ข To make sense of new markets, ideas and business models, check out our research reports.

    ๐Ÿ’ฌ 1:1 Founder Intros โ€ข Make new friends, share lessons and find ways to help each other. Keep life interesting by meeting new founders each week.

    ๐Ÿง Daily Standups โ€ข Stay productive and accountable with daily, async standups. Unlock access to 1:1 chats, masterminds and more by building standup streaks.

    ๐Ÿ’ฒ 100k+ Startup Discounts โ€ข Get access to $100k+ in startup discounts on AWS, Twilio, Webflow, ClickUp and more.

    What youโ€™ll get:

    • 8 Use Cases (166% More)
    • 17 NFTs (240% More)
    • 18 Marketplaces (160% More)
    • 21 Artists (320% More)
    • 12 Games (300% More)
    • 20 NFT projects (566% More)
    • 5 Metaverses (๐Ÿ“ˆ Trends Pro Exclusive)
    • 7 Predictions (133% More)
    • 9 Opportunities (200% More)
    • 6 Key Lessons (100% More)
    • 10 Links (233% More)

    With Trends Pro youโ€™ll learn:

    • (๐Ÿ“ˆ Pro) How are NFTs and DeFi related?
    • (๐Ÿ“ˆ Pro) Why are people buying art from algorithms?
    • (๐Ÿ“ˆ Pro) What are examples of member-owned communities?
    • (๐Ÿ“ˆ Pro) Why are legacy brands undervalued?
    • (๐Ÿ“ˆ Pro) What are redeemable tokens?
    • (๐Ÿ“ˆ Pro) Where are data-as-a-service opportunities?
    • (๐Ÿ“ˆ Pro) Who’s using NFTs to growth hack?
    • (๐Ÿ“ˆ Pro) What services are being built around NFTs?
    • (๐Ÿ“ˆ Pro) How can NFTs create more alignment?
    • (๐Ÿ“ˆ Pro) What’s the best use for NFTs in communities?
    • and a lot more…