One of the largest photo stock platforms that bring authors of high-quality licensed stock photos, graphics, vectors, and videos together with appreciative buyers.
This promoted content is produced by a publishing partner of Open Mic. A paid-for membership product for partners of The Drum to self-publish their news, opinions and insights on thedrum.com - Find out more
Digital ownership trends 2023: Why charitable NFT sales will rise despite NFT decline
December 5, 2022
Within the last few years, NFTs have been appearing everywhere: from art, fashion, and gaming, to real estate and entertainment. Many brands took advantage of the NFT hype to stay on top of trends, engage customers, and beat their competition. Nevertheless, OpenSea, one of the largest NFT marketplaces, has seen its trading volume fall by more than 90% since January.
Despite recent unfavorable NFT purchase patterns, Trend Hunter has a positive outlook for the coming year. According to the company’s 2023 report, brands will use NFTs to create charitable products or initiatives. Does this mean that we will see an increase in NFT charity purchases? Let’s explore charitable NFT initiatives, the reasons why people will buy charitable NFTs in 2023, and great examples of how NFTs can work for charity.
Why will we see a rise in charitable NFT sales?
Growing awareness of NFTs
In the US alone, NFT familiarity has skyrocketed since 2021. While only 20% of Americans knew what an NFT was in 2021, by 2022, that figure had risen to an astounding 65%. Plus, the number of NFT holders has doubled between 2021 and 2022, growing from an estimated 4.6 million to 9.3 million people. Moreover, around 7% of non-holders said they would likely buy an NFT in the next 12 months, resulting in 16.3 million potential customers.
Crypto donations and donations, in general, are on the rise
The world saw record numbers of donations in 2020 despite a global pandemic and a difficult economic situation for many. In 2021, total charity contribution increased by 4% in dollars, but remained unchanged after adjusting for inflation.
When it comes to crypto donations, their volume skyrocketed in 2021, making up an increase of 1,558% from 2020. In terms of charitable NFT initiatives, The Giving Block alone handled 12.3 million dollars in crypto donations from NFT projects in 2021.
Non-fungible tokens effectively attract media and people's attention
NFTs successfully grab the attention of media and people due to their novelty, exclusivity, and rarity. An NFT collection from a known company or brand in collaboration with a charitable foundation might appeal to all kinds of audiences. Among them are the brand’s regular customers, collectors, traders, caring people who want to help others, users interested in blockchain and web3 technologies, and individuals who are willing to keep up with trends.
NFTs allow the implementation of almost any idea or theme
The versatility of non-fungible tokens gives creators room for creativity, innovation, and experimentation. Most charitable NFTs are art-related and feature everything from 2D images, videos, and music to animations, 3D objects, and AR NFT pieces. Also, some creatives make digital frames for NFT art so people can hang them on their wall. Nonetheless, these digital assets may also be used as tickets to various exclusive events, provide early access to NFT drops, give a chance to participate in giveaways, gain access to specific communities, and much more.
People can purchase non-fungible tokens anywhere at any time
Since the pandemic's start, many charities have been unable to gather donations through their typical offline charity events and fundraisers. However, NFTs allow them to hold online charity events regardless of location and time, helping them to raise funds more effectively and safely.
NFTs provide greater transparency
Non-fungible tokens, as blockchain-based digital assets, allow greater transparency of cash flows. Many blockchain networks publicly expose their data, allowing users to view the network's transaction history. Therefore, users can easily check how much money nonprofits receive and spend. However, that doesn't imply you can view any personal information about users who donated. It is strictly confidential.
People receive NFTs after donating money
People can support a good cause while also having the opportunity to own a digital art piece, become part of a community, attend some unique events, or receive physical merchandise. Consequently, such practices can motivate them to participate in similar projects more often, sharing the benefits of donating to NFT charitable initiatives with their environment.
Charitable projects resonate with the brand's customers
People nowadays take more responsibility for the products they consume. Therefore, it’s critical for them to know that the companies that make those products share the same values and will support specific causes based on them, including projects that have a social, environmental, or economic impact.
Attention-worthy examples of how NFTs can benefit charities
This year started with heartbreaking news from Ukraine. The unfolding humanitarian crisis caused by Russia has not only harmed Ukrainians, but also left billions of people facing the greatest cost-of-living crisis in a generation. Therefore, many will agree that although Russia’s war in Ukraine is not the only issue confronting humanity, it has a global impact that worsens all existing crises.
In this scenario, NFTs could be a powerful tool for attracting people’s attention and raising funds for humanitarian needs, as well as preserving the history of current events through digital art. Just like the META HISTORY museum does.
META HISTORY museum is Ukraine’s largest charitable NFT project supported by the Ministry of Culture and Information Policy of Ukraine. It was founded a month after Russia’s full-scale invasion to record Russian war crimes and collect proceeds for humanitarian efforts using NFTs. To date, META HISTORY has raised more than $1.2 million for the Serhiy Prytula Charity Foundation and the crypto fund Aid For Ukraine.
It was originally conceived as a short-term project, as the founders believed that the war would soon be over; however, eight months into Russia’s invasion of Ukraine, it continues working, creating, and collaborating on important charitable projects such as The Revival Project.
The Revival Project is the most recent charitable initiative created by Depositphotos, an international content marketplace, with the support of META HISTORY and the Ministry of Culture and Information Policy of Ukraine. The project presents 38 unique charity NFT artworks accompanied by touching stories from Ukrainian artists who created them; all in an effort to raise money for the reconstruction of destroyed Ukrainian cultural sites that have suffered from constant Russian shelling.
Since the beginning of the war, Russia has destroyed over 450 buildings, monuments, and streets, endangering Ukrainian cultural heritage. Culture is a crucial part of any nation. It helps to identify and distinguish oneself from others, so it’s important to preserve and pass it on to future generations.
The Revival Project features artworks in which Ukrainian artists reimagine their own experiences, memories, and fantasies; all to share their vision of how destroyed cultural sites might look in the future. Personal stories about these places also back up each set of artworks.
There's something for everyone with a diverse range of compelling animated, 2D, and 3D artworks in different artistic styles. All NFTs in the project are available for multiple purchases to allow more people to contribute to an important initiative, while also becoming digital art owners. In addition, all funds are transferred to the crypto wallet of the Ministry of Culture and Information Policy of Ukraine.
Today, philanthropic NFT initiatives are the best way for companies and NGOs to stay on top of trends in 2023, generate buzz, and raise money for purposeful social causes. On the other hand, donating to charitable projects is an excellent way for individuals to make a difference, support important initiatives, and acquire exclusive digital collectibles that can later increase in value.