Utility tokens for NFT projects are rapidly growing, as the NFT trend grows stronger. The most common type of utility token is the ERC20 Ethereum standard. NFT companies are building their decentralised applications on top of the Ethereum blockchain, while launching private funding rounds to support the project’s growth.
Utility tokens have a much stronger purpose beyond just raising money for blockchain start up projects. These tokens are digital assets that are designed for transacting within their designed blockchain ecosystem.
There have been some exciting updates on NFT utility tokens becoming more widely available for purchase, with many being listed on major cryptocurrency centralised exchanges:
- Meme (MEME) was listed on Okex on 13th October
- Terra Virtua (TVK) was listed on Bitmax on 6th December
- Aavegotchi (GHST) was listed on Binance on 8th December
The popularity of NFT related communities is also growing with associated tokens.
The Sandbox have recently partnered with We have partnered with CoinMarketCap to launch the first ever NFT Gaming Campaign on CoinMarketCap. The Sandbox is a virtual world that allows players to build, own, and monetise their gaming activities on the Ethereum blockchain. There are three primary components, which are:
- Voxedit 3D voxel art animation software for building NFT game assets
- Market place for buying and selling NFT assets
- Game maker tool for creating gaming experiences in The Sandbox metaverse
The project has many more updates to come, with innovation being rolled out.
The rise of cryptocurrency utility tokens is allowing a bridge of cryptocurrency participants to access information on NFT projects. With greater understanding, this is allowing NFT projects to grow and build new platforms for a growing fanbase to access.
Many participants in cryptocurrency are focused on projects with strong fundamentals that is coupled with good tokenomics to allow price to gain in value and become a solid investment.
The use case of SAND is it is a gaming platform that allows the trade of assets, partaking in governance, staking and liquidity mining for passive income, with further features being added. The current tokenomics of SAND is there are almost 25% of total supply in circulation. Total supply is 3 billion SAND tokens.
The project has land presales in the pipeline to increase demand for the token and this is in addition to the project securing investment from Binance, Atari and partnering with Coincheck, to broaden adoption of digital NFT assets and virtual land in the Japanese market.
With this in mind, now would be a great time for the cryptocurrency community to become involved with NFT projects. The trend is growing stronger and utility tokens offer a first bridge to gain understanding into NFT projects, as they would do with commonplace cryptocurrency projects.