NFTs are far more than a digital piece of art that’s stored on the blockchain. Oftentimes, these artworks act as tickets to live events, exclusive content, and discounts unavailable to anyone not in the club.
However, there’s a hole in the utility that seems to be being filled.
Imagine you’re a New York Mets fan but in order to go see a live game, you had to own a lifetime ticket that costs thousands of dollars. Unfortunately, you’d be much less likely to ever see the New York Mets play in real life than you would if you could buy a much lower cost single ticket to a single game.
NFTs are often faced with the same conundrum. In order to be part of certain Discord events, have access to exclusive video and art, and take part in other events, you have to own specific NFTs that act as your lifetime ticket into the ecosystem.
But what if you don’t have, or want to spend, the tens, or even hundreds, of thousands of dollars it costs to own one of these lifetime tickets?
ReNFT is bringing a solution to the industry and venture capitalists are eating it up.
What is ReNFT
ReNFT is a protocol layer that lives on the Ethereum blockchain, giving owners of NFTs an opportunity to monetize their art ownership while giving others in the community the ability to rent the NFTs that act as tickets to exclusive events and content.
ReNFT acts as a protocol layer that enables peer to peer renting of NFTs. As is the case with the rental of any other goods, the NFT owner is rewarded with monetary compensation when allowing others to hold the copyright to their art while the renter pays to own the art for a predetermined period of time.
For example, the project recently facilitated the peer to peer lending of Stoner Cats, an NFT collection that provides owners with access to a library of short videos and animetas. These NFTs also grant holders access to private discord events. The rental of Stoner Cats in this example was centered around providing temporary access to a private discord event. So, owners that didn’t want to, or couldn’t, make the event, were able to make money by renting their tokens to people that were willing to pay to go, much like selling a ticket to a sporting event on a secondary market.
The Concept Is Taking off Among Venture Capitalists
Not only does ReNFT seem to have a great idea when it comes to the utility of NFTs, the project is seeing quite a bit of attention from venture capitalists. The company behind the rentable NFT platform, Animoca, is driving in the big bucks.
In fact, in a recent fundraising round, the company brought in around $1.5 million from firms like Lattice Capital, Play Ventures, MetaCartel Ventures, Scalar Capital, LongHash Ventures, SkyVision Capital, Fedora Capital, and Maeve Ventures.
So, what does that have to do with the price of rice in China?
Venture capitalists make it their life’s work to find projects in their infancy that have the potential to be the next big thing. Once a project is found, these big money players reach deep into their own pockets to help fund projects in exchange for a percentage of ownership in the project.
While it seems like everyone and their friends have an idea to bring to the table, grabbing the attention of the venture capitalist community is a difficult task to accomplish. So, the fact that the VCs are diving into this project head first tells us two things:
- NFT Value Isn’t Going Anywhere Anytime Soon. First and foremost, NFTs are highly valuable assets and that value isn’t likely to dissipate any time soon. In fact, with big money players emptying their pockets to get behind NFT rental technology, increased utility will likely continue to lead to increased value.
- Rentable NFTs May Be the Next Big Thing. There’s no question that there’s value in the ability to rent an NFT, both from the perspective of the NFT owner, and the renter. However, with venture capitalists diving in, the NFT rental industry is getting the funding it needs to explode onto the scene and could become the next big thing.
The Bottom Line
The bottom line here is simple. The NFT industry is still in its infancy and as it continues to grow, the utility of these assets will expand along with their value. The fact that NFTs are actively being rented to give access to exclusive content and events to those who would otherwise not have that access is yet another feather in the cap of the industry, pointing to the continued rapid growth of the space.