Digital collectible

Many large companies prefer to call their NFTs digital collectibles, a term that sounds familiar to fans of trading cards and avoids the speculative image of crypto. Sports leagues sell licensed highlight clips and player cards, social networks have offered collectible avatars, and brands issue limited-edition items tied to events or loyalty programmes. Buyers often pay by card and receive the items in a custodial wallet created for them.

This approach brought millions of people into owning NFTs without needing to understand wallets or gas. A social platform's avatar programme on a low-fee chain created millions of wallets, and a basketball highlights marketplace was among the largest NFT platforms of 2021. The collectibles framing also suits traditional collectors who value scarcity, fandom and display.

Many corporate programmes have since closed or been scaled back, and resale markets for most digital collectibles are thin. Custodial setups may limit withdrawals or trading outside the brand's own marketplace, and items can lose features if the company exits. Lawsuits have argued that some collectible sales were unregistered securities.