Brands can also benefit from NFTs by selling limited edition products to consumers, growing their brands and building loyalty with the buying audience.
The clearer the understanding of NFTs and what they can do, the clearer the use cases for these crypto tokens become, whether they manifest themselves in digital art, gaming tokens, collectibles, or even real-world assets. Organizations looking to integrate NFTs as part of their overall strategy may want to consider these aspects in their planning and execution. Keep in mind that the NFT only indicates ownership of assets. Where it can be “used” or traded is key to the success of an NFT.
NFTs are auditable and traceable, meaning the consumer knows the NFT they are purchasing is genuine and cannot be copied. NFTs can also be used to build brand loyalty and community around their products. Coca-Cola sold in 2021, a series of collectibles called the Friendship Box, which sold for $575,883. The Friendship Box contained four friendship-inspired multi-sensory NFTs that brought a virtual twist to Coca-Cola imagery.
The Formula 1 team McLaren Racing has started his experience on Tezoswhere fans can collect NFTs representing different parts of a Car McLaren racing car. The pieces are limited editions and those who manage to complete the set will win an interactive 3D collectible of the finished MCL35M vehicle as well as a chance to win a trip to a Grand Prix race in 2022 where the all costs are paid Using NFTs creates additional touch points for the brand and offers unique opportunities to bring people together under the brand umbrella.
For example, the famous rock band Kings of Leon have released their album, When You See Yourself as NFT earlier this year, as well as a token that gave fans perks for their live shows, such as B. Front row seats. This allowed the band to develop a more direct relationship with their fans.
It demonstrated how NFT and IRL products could be packaged together, traversing both online and offline realms. It also shows how NFTs can also be used to generate pre-launch enthusiasm for new products or create new revenue streams by creating digital goods to increase sales of physical goods. Enterprise NFTs are still in their infancy, but the potential uses are almost limitless. Any document, digital asset, or ID card can be converted to NFT. NFTs are unique and are perfect for governments and businesses looking to create verifiable and non-reproducible goods and services, whether digital or in the real world.
Launching an NFT is just the beginning, a strong post-NFT roadmap is key to its continued success.
The Reddit case
This platform is a UFO, Redditors have posted over 430 million posts, up 14% from last year, and over 2.5 billion comments, up 7% from 2021. Some of the rarest Reddit NFTs have fetched high prices on secondary NFT marketplaces like OpenSea the most expensive sells for over $300, while the platform’s own marketplace sees prices around $50.
As of July 2022, Reddit has quietly added over 2.5 million users to Web3 without actually using the words NFT, crypto, or Web3. Still, Reddit’s Vault feature is a digital wallet based on the Blockchain which allows users to collect digital goods while browsing. Since then, the collection has reached a new milestone in early December with a record 255,000 of its coin avatars in one day. What Reddit doesn’t say is that these digital products are actually NFTs, which is what makes this Web3 strategy so influential. In a world where people tend to resist change, getting users to adopt new technologies is difficult. Terms like “crypto”, “NFT” and even “Web3” sometimes carry negative connotations as some malicious actors have exploited the nascent ecosystem for their own benefit.
The key takeaway from Reddit’s Web3 launch is that when working with non-native Web3 audiences, it’s important to make the onboarding process as smooth and easy as possible.
What is an NFT?
An NFT (Non-Fungible Token) is a type of unique cryptographic token that can be used to represent unique digital assets such as artwork, collectibles, real estate, etc. An NFT differs from other cryptographic tokens such as Bitcoin because it is indivisible and cannot be exchanged for other assets in an equivalent manner. This means that each NFT is unique and has its own intrinsic value.