offers two membership tiers denoted by a set of Brand Profile Pictures (PFPs) bearing the seahorse logo: 444 “legendary” NFTs, which are worth a minimum of 88 ETH (approximately $111,860) on OpenSea at the time of writing, and 8,888 “Premium” NFTs, which can be purchased for 3 ETH (approximately $3,810) each. Holders previously received access to VIP events at worldwide concerts by artists such as Bad Bunny, Jack Harlow, and Post Malone, as well as live performances at rapper Polo G’s nightclubs.
The music industry will be “changed forever,” according to Dancing Seahorse, and the project joins a growing number of NFT ventures concentrating on utility NFTs, which tie digital artifacts to real-world incentives and experiences. Huh.
What are Utility NFTs?
Despite the widespread belief that NFTs are little more than static JPEG photographs or pricey fine art antiques, a number of NFT developers have begun to offer in-person benefits to NFT owners. This long-term holding approach has alleviated some of the worry generated by the crypto winter and the dramatic decrease in NFT trading.
Utility NFTs that provide access to tangible rewards or experiences are a sort of NFT. Many have a high market value because they are associated with bright artwork or have collector characteristics that attract quick-turnaround investors. Some NFTs, for example, are being utilized as a replacement to traditional event tickets to reduce fraud and price gouging, while others allow users to swap their tokens for digital and physical commodities.
Bored App Yacht Club and Doodle are two successful art-focused NFT ventures that have added value to holders by allowing them to organize unique events. These events are often “token gated,” which means that admittance requires the user to show possession of a specified NFT.
Token gating can be used to restrict attendance to events by requiring guests to connect their cryptocurrency wallet as proof of ownership of a certain NFT. This technology was used by entrepreneur Gary Vaynerchuk for the first-ever Wicon event, which guests could easily slide into their wallets. To get entrance to the conference, attendees only needed their airdropped VCoin NFT ticket and a VFriends NFT in their wallet.
Because there are no middlemen, there is less opportunity for ticket fabrication.
For Dancing Seahorse and other music-focused Web3 businesses, utility NFTs eliminate the need for traditional event tickets. Putting tickets on the blockchain could help customers avoid the ticket scams that continue to plague the music industry by eliminating their reliance on third-party ticketing systems, which can sometimes charge extra fees.
Given these issues, Groovu, a ticketing business, offered NFT ticketing last month. The software allows event organizers to accept NFTs as payment, making ticket ownership verification and transaction tracking easier.
Groovu co-founder Arthur Sampaio told CoinDesk that distributed ledger technology already has built-in solutions for problems like ticket fraud and theft.
He indicated that they were concerned about keeping the tickets in an unbreakable, secure area. What type of information can we store on the blockchain if we want other institutions to trust us?
He claims it’s integrated into the blockchain.
Reservations for dinner, culinary zeal
Problems in the hotel industry, which can irritate groups of self-proclaimed “foodies,” are also being addressed by utility NFTs.
One company is using NFTs to sell NFT holders preferential booking opportunities at some of New York City’s most well-known restaurants, as well as other unique experiences, as obtaining reservations at these venues has become increasingly difficult in recent years.
Front of House, an NXT event firm, provides digital collectibles that guarantee same-day reservations at highly sought-after restaurants with months-long waiting lists. It just so happens to be the case. Members can also participate at exclusive events, menu preview tastings, and purchase goods.
According to Front of the House co-founder Phil Toronto, accepting NFTs for restaurant reservations at high-end venues has the potential to improve the general public’s exposure to the culinary arts and stimulate the growth of communities of like-minded gourmands.
“We’re doing our best to bring the word ‘utility’ to life,” Toronto said. “We are taking an active role in demonstrating what is possible in the physical world and connecting this with the digital token world.”
NFTs providing access to elite New York City establishments such as Dame’s, Emmett’s on the Grove, and Hanoi House can be purchased on the Front of House website. Food photographer Evan Sung’s pictures and subscriptions to the Wildire’s Donut Club, both of which can be found in Polygon, are also collectible.
The Flyfish Club, a posh private dining club in New York City, was also founded by Vaynerchuk’s VCR Group. It is only available to NFT holders and has a starting price of 3.5 ETH (about $1,270) on OpenSea (at the time of publication).
Token-based access is strengthening communities.
Non-formal education projects that provide some sort of practical benefit are highly effective at bringing people together. Holders who have a strong feeling of community and belonging encourage involvement and teamwork.
Dancing Seahorse offers its customers with a range of token-gated events in which they may communicate with other music fans and get entry to special concerts by their favorite artists.
“With Web3, people are discovering that the experiences we provide also give people the opportunity to network,” says Nahai.
While the potential of owning a sought-after NFT may interest some short-term investors, Front of House believes that the key selling point for many utility NFT holders is the opportunity to participate in a fresh, community experience.
The main line is that money is not the ultimate goal. According to Toronto, having an asset that provides a practical advantage is critical.