Non-fungible tokens, or NFTs, are another name for collectible tokens. Their distinguishing characteristic is that they denote possession of one-of-a-kind products, such as artwork, merch, or ranks. NFTs are about being unique: while utility tokens are fungible, i.e. two of such tokens are the same and indistinguishable from each other, NFT represents a unit of possession strictly one of a kind. In a way, NFTs are similar to baseball cards, all of which are unique and have exceptional value.
As for today, the most recognizable NFT function is to preserve the fact of possession. Using this kind of token allows digital artists to monetize their artworks: owning an NFT with a particular gif, meme, or sketch doesn’t transfer the intellectual right to the possessor, but is an analogue to holding an original painting signed by the author.
Collectible tokens can also be used as digital souvenirs, so to say. By issuing their own branded NFTs, businesses may positively influence the appearance of their brand, as inside the corporate ecosystem, NFTs can represent some ranks or achievements. This would allow people to connect with a brand and experience a sense of belonging to the community. If this case sounds interesting to you, check out our Lucky Ox NFT Merch Collection