Introduction

NFTs have many positive aspects but in this whitepaper, we are going to focus more on one of them: its investment utility.

Crypto currencies deeply changed the way we were used to see the global finance system by decentralizing capital and removing regulatory boundaries. Now, NFTs are having the same impact on conventional capital investment. Current capital investment system relies on big investors, like angels and ventures. For regular people, it is hard to become an investor unless you have accumulated a serious amount of capital. Also, even if you have enough capital, it is really hard for you to find the right firms or projects to invest in. On the other hand, from the side of entrepreneurs, they have limited options with regards to from whom they can get investment. NFTs made it possible both for regular people who want to invest their small-scale capital to promising projects and for entrepreneurs who want to have easy access to investment, to tear down the entry barriers.

Release of an NFT collection can really alleviate the problems created by current capital investment system for small time investors and project owners all over the world. From the point of investors;

• First, and the most important of all, it enables small investors to participate in funding of a new company or a project without the necessity of having a considerable sum of capital.

• Second, waiting time for a return of investment is considerably shorter compared to traditional investments although investors do not become a shareholder of that company.

• Third, probability of losing the investment is not higher than a traditional investment whereas percentage of profit can be beyond expectations.

• And lastly, especially true for NFTs with utility, most of the projects provide additional benefits, like staking, airdrops, etc., for NFT holders and when project is finished, NFTs are used as utility items within the finished product of the project.

From the point of projects and their owners, the most important aspect of an NFT release is that they are constrained with the limits of traditional capital investment structures. They don’t have to sell out their dreams to a select few who hold the power of money at their hands. On the contrary, with decentralized structure of NFT markets, they just attract attention of thousands of like-minded people. The future wealth, if the project succeeds, is not distributed among the few but among those who believed in the project from the very beginning without putting forward any conditions.

So, project owners don’t have to compromise in order to maximize future profits as their investors expect them to finish their project as they have presented it. Most of the first comers of a project are believers of that project and their main concern is to see it finished. Monetary gains are secondary, at least we want to believe it is, as they know their investments will be rewarded after a successful launch. Also, an NFT collection launch is much faster than a traditional investment, which can take months of negotiations with different investors.

Some other benefits can too be mentioned but these are the main positive aspects of NFTs for our focus point. However, all these can be summed briefly as:

NFTs empower the small-time investors, who otherwise do not have access to traditional capital investments, with their decentralized structure and helps teams/companies/projects to be funded faster and by like-minded people.

We know there are many scam NFT projects and not every project owner sees NFTs as we described above. Still, they provide previously impossible opportunities for both aspiring investors and entrepreneurs.