While flipping tokens for profit is the most prevalent way to make money in the nonfungible token (NFT) ecosystem, there are other ways to make money with NFTs as the market develops.
Bill Starkov, the founder of Apocalyptic Apes and a member of the Bored Ape Yacht Club (BAYC), discussed how NFT holders might lease the tokens’ intellectual property (IP).
Starkov observed that “holders might gain thousands of dollars by licensing out their monkeys for commercial use,” citing BAYC as an example. He explained that if the NFT collection grows more famous, this could happen with other projects as well.
Aside from that, Starkov believes that with NFTs, people’s profile images will someday become celebrities themselves. He mentioned:
“In the future, NFT holders will be earning hundreds of millions of dollars through IP rights, because PFPs in the future will become your new Jay Leno, they’ll become your new Jimmy Kimmel, your new Oprah.”
However, in order for this to happen, the Apocalyptic Apes creator stated that individuals must first retain their NFTs and enable the project to mature. The BAYC member also thinks that “turning your PFP into a character is an opportunity to bring it to life.”
There is a lot of misunderstanding about copyright, intellectual property, and the ownership of NFTs. Spice DAO was mocked on the internet in January for tweeting about ambitions to develop an animated series based on the book Dune after obtaining an NFT of a rare copy of the novel. Many people responded to the tweet by pointing that purchasing the NFT does not imply that they will own the copyright to the real book, as the law states that the copyright will remain with the writers of the original work.
The BAYC NFT of American actor Seth Green was stolen and sold to someone else in May. Concerns over who owns the commercial usage rights arose since the BAYC was slated to be utilized in a television show. A law scholar even stated that Green may be prosecuted because consumers are legally protected if they unknowingly purchase a stolen object, implying that the IP passes to the new owner. Green eventually purchased the NFT back.