We are entering a hype cycle for NFTs. Lot of advice for investing in NFTs, but nobody talks of how to Make Money through NFT as a developer..
The market for NFTs is booming and a lot of entrepreneurs are building NFT projects some of these NFT projects have a lot of users. For example, in august 2021 OpenSea the biggest NFT marketplace had a trading volume of almost 2 billion and charge a 2.5 trading fee for each transaction. They made 50 million dollars of revenue in single month on top of trading fees. A lot of this NFT project raised a million from VC funds and with all this money NFT companies can pay good salaries to blockchain developers.
There are two kinds of Make Money through NFT as Developer project NFT creators and NFT marketplaces. Let’s start with NFT creators NFT creators are the project that create NFT collections for simple NFT collections like artworks created by digital artists. Anybody can create NFT collection with just a few clicks and put it for sale in this case we don’t need any custom development. It gets more interesting for NFT collections that are advanced. For example, generative arts like crypto pen for this NFT collection there is an algorithm that generates programmatically the image of each NFT, and it can get complex and requires some custom development.
There are also NFT collection that are part of the NFT game like crypto kitties or infinity. In this case each NFT represent a character and you have all the game logic. For example, for crypto kitties each virtual kitty can breed other kitties for this kind of use case this is very custom, and we need some custom development.
The other part of the industry is NFT marketplaces. Once the NFT creator created his collection he or she wants to sell it on a marketplace which is primary market. Primary market is finished and NFT traders buy and sell NFTs from each other are secondary market. Primary focus of an NFT marketplace is to provide liquidity and needs to provide a nice user experience for traders.
Make Money through NFT as Developer allows you marketplaces like decentralized exchanges are non-custodial which means they don’t own the NFT of their traders and for this we need to do the trading in smart contracts. It requires expertise in smart contracts. If someone want to work for an NFT marketplace then research on the main NFT marketplaces is necessary for this check out the NFT marketplace ranking like OpenSea and check what make them special. For example, OpenSea is the oldest and largest NFT marketplace they have a lot of users and NFTs listed it’s like the eBay of NFT. There are also some other NFT marketplaces that are specializes in digital artwork Superrare is another marketplace for digital artwork.
Another way to monetize skill which has even more potential when as a blockchain developer already have a lot of cards in hand to launch NFT project. Since already know how to code you don’t need to hire someone to do it which means you need money to launch your own NFT project. If you are willing to take a bit more risk in exchange for a potential higher upside you can consider creating your own NFT project instead of working for NFT project.
Let’s see where the opportunities as an entrepreneur in the NFT space are. First kind of idea is to create your own NFT collection as discussed before there are three kinds of NFT collection digital artwork, generative art and blockchain game.
Problem of digital artwork is that you need to have good skill as an artist and a good following on social media and you don’t really leverage your strength as a developer. This is not the most interesting opportunity however when it comes to generative art NFTs and blockchain NFTs there is much more coding involved and as a developer you have a much bigger competitive advantage. So that’s why it is recommend doing either generative NFT or blockchain game NFTs.
Launch self-own NFT collection the simplest is probably generative or art NFTs. Blockchain game NFTs must think of the gameplay also have to create a lot of visual assets there is more work to do. There are two ways to make money when you create your own NFT collection. First there is the primary market in which selling NFTs to buyers for example crypto punks had 10,000 items for sell. During their primary sale you can either choose to sell each NFT once or sell an NFT several time but in this case it’s harder to justify a higher price. Since the NFT is less rare but what do you do once you have sold your initial collection is it over. First you don’t need to sell all the NFTs of the collection right away you can sell a part of them and keep some for later and if later your project becomes more popular you can sell the remaining NFTs for a higher price.
The secondary market after the primary market the buyers of your NFTs can resell their NFT to other buyers. Normally don’t recognize any of that money the new buyer pays the seller and that’s it. Recently NFT marketplaces introduced the concept of NFT royalties set up royalties for your NFT collections you get a percentage of each sale. The secondary market allows to have some passive income after the primary market.
Summing up if you decide to create own NFT collection it’s recommended to either focus on generative art NFT or blockchain game NFTs can make money both with the primary and secondary market. Beside creating your own NFT collection there is also another way to be an entrepreneur in the NFT space it’s by creating your own NFT marketplace which offers even more upside than an NFT collection in the previous section.
Another interesting idea is to introduce Defi (Decentralized Finance) concept to the NFT world. Project are introduced flashlights for NFTs liquidity mining as well as lending and borrowing so now you know how you can make money with NFTs as a developer. It doesn’t prevent you from also investing in NFTs but don’t just invest in NFTs also explore these unique opportunities as a developer and currently we are in a hypercycle for NFTs the timing is perfect.
This article shows that it’s possible to create a passive income stream with NFT royalties. NFT royalties will keep receiving payment even after the initial sale of your NFT.