NFTs as Gifts or Rewards for Employees

Introduction

Non-fungible tokens (NFTs) are gaining popularity worldwide, and during the 2021 holiday season, media reports highlighted a trend of people buying NFTs as gifts for their friends and family. According to Cryptonews, NFT transactions surged by 328% in the first three quarters of 2021, bringing the total volume to $2.5 billion. For comparison, in the first half of 2020, the volume of transactions was only $13.7 million. The pandemic and the rise of blockchain games have accelerated the mass adoption of NFTs, pushing the global market capitalization of these unique tokens to $7 billion. This growth trajectory shows no signs of slowing down, with Morgan Stanley forecasting that NFTs could become a $56 billion market by 2030.

NFTs make excellent gifts, and their value can be appreciated over time, much like art or collectible wines. Additionally, giving an NFT is often simpler than purchasing a physical gift, and a wide range of NFTs are available to suit different budgets. This trend has even reached museums, with institutions like the Hermitage Museum considering the creation of NFT-based gifts. The museum's director, Mikhail Piotrovsky, believes that while people enjoy the sense of ownership, NFTs represent a new way to monetize this desire.

Why NFTs Make Great Gifts

At first glance, NFTs may seem like a complex gift, especially for recipients unfamiliar with cryptocurrency. Terms like "wallet" and "keys" might be foreign, and understanding the concept of NFTs can be challenging. However, NFTs offer a unique and innovative way to introduce loved ones to new technology.

For example, 28-year-old Jessica Walker gifted NFTs to her family for Christmas to help them learn about this emerging technology. Walker, who creates educational content for CoinMarketCap, spent about one Ethereum ($4,100) on these gifts. She tailored her NFT selections to her family’s interests—American football-themed NFTs for her father and brother and a news-related NFT for her mother. Though her brother was more skeptical, Walker’s approach highlights how NFTs can be personalized and meaningful.

Similarly, Paula Sanguino, a 36-year-old dental hygienist from North Carolina, received an NFT domain name from a friend. While initially confused about its value, she eventually recognized its potential, illustrating the learning curve that often comes with receiving an NFT.

For some, NFTs also carry sentimental value. Nicholas Herbert, a 30-year-old from Montreal, gifted NFTs in memory of a recently deceased friend. These tokens, given to the friend’s niece and nephew, symbolize remembrance and continuity. In this case, NFTs serve not only as gifts but as lasting memories that can grow in value.

NFTs as Employee Rewards

Beyond personal gifting, NFTs are increasingly being used as rewards in business. They offer a unique way to recognize and reward employees, functioning like virtual medals or badges. For example, in May 2021, when Bitwala rebranded to Nuri, Co-Founder and CEO Ben Jones rewarded his team with NFTs to commemorate the hard work that went into the transition. This gesture not only acknowledged their efforts but also provided them with a potentially valuable digital asset.

At Mobile Reality, we plan to gift a rare NFT collection to all our employees during the company’s Birthday Party. NFTs in business are becoming a popular way to show appreciation, and they’re often given after successful collaborations. A great example is the NFT our #MRTeam received from TuneGO, a long-term business partner, as a token of respect and successful cooperation.

The art and market of NFTs open up new opportunities for businesses, clients, and employees. Physical gifts and rewards can sometimes feel mundane, but NFTs offer something new and unique. Plus, these digital presents have the potential to appreciate value over time, making them an exciting and forward-thinking choice for any organization.

Insights into Employee Recognition in the HR Industry

Are you interested in the unique challenges and innovative strategies for employee recognition within the HR industry? At NFT Reality, we are excited to share our extensive insights and experiences with you. Discover the challenges we tackle, the techniques that drive us, and the creative solutions we implement in our employee recognition initiatives. Dive into our collection of related articles featured on our blog – a treasure trove of knowledge awaits you:

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Enjoy exploring these insights. If you have any questions or want to learn more about how our platform can enhance your employee recognition programs, don't hesitate to reach out. Experience the impact of NFT Reality – your partner in fostering a culture of appreciation and motivation - sign up today!