If you have any doubt that NFTs are becoming more mainstream, one of the biggest companies in the world is out to prove you wrong. Brands that want to stay relevant will soon need an NFT strategy, and we are already seeing how some notable players are embracing this.
Growing a brand in a highly competitive market is a daunting task that comes with many challenges. How to acquire new customers without breaking the bank? How to further engage existing customers efficiently? At the same time, consumers are demanding fresh, customized ways to interact with brands that create healthy, emotional engagement and drive value.
Everyone is familiar with email marketing campaigns, and we all experience how fiercely companies compete with each other for consumers’ attention – and dollars – by bombarding our inboxes several times each week, if not every day. While still effective, this strategy is a bit played out. Our social media feeds are also loaded with ads and promotional posts, begging us to like, click, and shop for a quick dopamine hit when we tap “Buy Now.” That rush quickly fades, and then we’re back to scrolling. Digital engagement does not often lead to real-world fulfillment.
You’ve probably heard of Bored Apes and CryptoPunks and know them to be weird – and sometimes ugly – images that have been trading for a lot of money. These JPEGs are not just digital pictures, but NFTs, or non-fungible tokens. NFTs are just one of the many assets in this new world of web3 that leverage blockchain technology.
To put it simply, blockchain is digital information on a public network. The unique nature of an NFT is that it has verified credentials associated with its owner, which is why a CryptoPunk can sell for millions of dollars even though someone else can simply copy and paste the image. It’s the difference between buying an original Van Gogh versus a print of one of his masterpieces.
But NFTs as JPEGs that sell for a lot of money are what we refer to as “NFT 1.0.” It’s an entry-level use of blockchain, and even though it has generated wealth for early adopters – and headlines – it’s perhaps the least productive use of blockchain.