This thesis surveys the rise of NFTs in 2020-2021 through a critical lens and explores the efficacy of using NFTs to broaden physical goods companies. As a skeptic, the intention behind this thesis was to challenge my own existing reservations on the topic, and to instead make informed judgments. As they always say, "do your own due diligence".
In 2020, the NFT market experienced dramatic growth, with the total volume exchanged daily surpassing US$10 million in March 2021. From the beginning of 2021 through mid-December, nearly $41 billion worth of cryptocurrency was sent to two types of Ethereum smart contracts associated with NFT marketplaces and collections. Of these, the largest amount of Ethereum sales were collectibles ranging from artworks to even virtual furniture; in February 2021, Argentinian designer Andrés Reisinger sold ten pieces of virtual furniture for a shocking total of more than US$450,000. Could companies selling non-virtual goods have anything to learn from the euphoric rise (and subsequent fall) of NFTs?
This thesis surveys the potential expansion of physical goods companies into the NFT and virtual space, and evaluates its advantages and pitfalls.