Giving away an NFT: What you should know about it

There are always promotions where companies give away an NFT.

Why companies give away a NFT

A Non-Fungible Token (NFT) is a unique, non-exchangeable and non-counterfeitable crypto value. Usually, NFTs are works such as digital artworks, pieces of music, scenes from films or video games. In the past, various companies such as Amazon, Coinbase or Atari have already given away NFts. What’s behind these actions:

• Giving away NFTs is being hailed by some marketing experts as an interesting new idea for marketing campaigns.
• With the high interest in NFTs, giving away NFTs is said to enable brands to create unique brand experiences, increase their own brand awareness as well as interactions with the brand.
• Atari has even launched exclusive NFT gifts, called GFTs, for this purpose. These NFTs, intended as gifts, initially look like wrapped gift boxes. On a certain date, they are unwrapped and the NFT is revealed.

This is what you need to know about giving away NFTs

If you want to give away an NFT, you should first find out whether your counterpart has a wallet to which you can transfer the NFT.

• If the potential recipient does not have a wallet, it is not possible to transfer the NFT to them. While they can purchase the NFT and initially hold it for the donee in their own Wallet, an actual transfer is only possible once the donee has set up a Wallet themselves.

• To give an NFT as a gift, you will of course need a wallet yourself. You have to buy or create the respective work yourself and store it in your own wallet in order to be able to transfer it afterwards.

• If the recipient already has a wallet, it is easy to give the NFT as a gift. To do this, transfer the respective NFT (whether purchased or self-made) to the corresponding wallet. Depending on where you have your wallet with the NFT to be given away, the procedure varies depending on the platform.

• You can then create or buy an NFT. If you want to buy an NFT, then there are various marketplaces available for this. Popular places to start include OpenSea, Binance or Coinbase NFT.
• In order to buy an NFT, you also need coins in a cryptocurrency to pay for the NFT. Most platforms require Ethereum for this purpose.