From large corporations to mom and pop shops, businesses across the world are embracing NFTs. Learn how your organization can leverage NFTs to connect with customers. Want to accept crypto for your NFTs? Get started with BitPay.
Why Are NFTs Valuable?
NFTs (non-fungible tokens) in the form of digital art, like CryptoPunks, have collected colossal price tags that may leave some scratching their heads. But moving past digital art, NFTs create value by showing proof of ownership that can’t be destroyed or counterfeited, but can also be easily transferred or sold. Ownership is publicly verifiable on the blockchain for all to see.
What are NFTs again? NFT stands for non-fungible token. An NFT is a unique digital asset represented by data stored on the blockchain. It can represent tangible and intangible items. The most popular NFTs to date have represented digital items like art, but NFTs can be used to show ownership of a physical item like a pair of exclusive sneakers or even a piece of real estate.
How Businesses Can Use NFTs
Commercial uses of NFTs are still in their infancy. Currently businesses are using NFTs to drum up brand interest, create memorable experiences, and expand promotions. Outside of NFT marketing, NFTs/smart contracts can be used to show digital ownership of physical high ticket items.
A community of die hard NFT supporters laid in wait for years. It wasn’t until 2021 that those communities broke into the mainstream. Now savvy brands are tapping into NFTs to engage with a new fanbase, creating next level fandom.
NBA Top Shot is an NFT community created by the National Basketball League. It gives fans the opportunity to purchase historic in-game moments featuring their favorite NBA stars and teams. NBA Top Shot takes one of the oldest forms of collectibles, sports memorabilia, and reimagines it for the digital age. Instead of owning a game-worn jersey or rookie card, NBA superfans can now own a moment in history.
Ahead of the US Grand Prix, Mclaren Racing of Formula One offered complimentary NFTs to superfans. Each NFT represents a specific car part, like a mirror or wheel. Fans could collect all parts to build their very own digital McLaren race car.
These types of unique fan experiences offer brands a new and exciting way to interact with their biggest supporters.
Raise Money and Awareness for Causes with NFTs
If your business is aligned with a non-profit or cause-focused organization then NFTs offer a unique fundraising opportunity. Your brand can auction or raffle off rare NFTs to connect with the blockchain community while raising awareness for your cause.
Coca-Cola’s Friendship Lootbox NFT collection auctioned for more than $575k. The collection, which benefited The Special Olympics, includes multisensorial NFTs representing the brand’s connection with friendship. Along with the NFT collection, the winning bidder received a custom-made Coca-Cola fridge.
Taco Bell also got in on the NFT hype by launching its own digital art in the form of 30 taco-themed NFTs. All proceeds from the collection benefited its own Live Más Scholarship through the Taco Bell Foundation.
Releasing collectible NFTs is a way to gain brand exposure and raise money for a good cause.
Run Smarter Promotions & Events with NFTs
NFTs can take the form of blockchain-based coupons, promos, and access codes which are easily trackable and can’t be counterfeited. Use the NFTs to offer member-exclusive deals to your new NFT community or package collectibles with purchase of new products.
Streetwear brand The Hundreds is leading the way with their Adam Bomb Squad NFT collection. The digital art series was a massive hit, selling 25,000 digital art pieces in less than an hour. Holders of the NFTs use their proof of ownership to get exclusive merchandise, early access to new clothes, plus special privileges at in-person events and sales.
Another brand leveraging NFTs to promote launches is BitPay partner AMC Entertainment. The movie theater released 86,000 NFTs as a reward for those that pre-ordered tickets to the new “Spiderman: No Way Home” movie. Thanks in part to the NFT, the movie generated the second biggest one-day ticket sales in AMC’s history.
The Hundreds and AMC demonstrate that NFTs as part of a product launch or promotion can emphasize monumental brand moments and events.
Track Ownership of Rare and High Ticket Physical Items
While the most popular uses of NFTs so far relate to digital art, they can be used to represent physical assets as well.
Way back in 2019, Nike was awarded a patent for “CryptoKicks”, giving it the ability to track digital and physical sneakers on the blockchain. This type of tracking could be used in place of receipts and certificates of authenticity for high price items like a Rolex watch, Birkin Bag, or Louis Vouton dress. Everledger is doing exactly this. The “digital transparency” company can show where precious items like diamonds go during their journey. Many consumers want to ensure they’re buying conflict-free diamonds. Retailers want to maintain sustainable and ethical business practices. Assigning NFTs to physical items can help everyone in the process.
Be an Early Pioneer of the Metaverse
NFTs are opening up an entirely new market for brands: the metaverse. High fashion brands like Gucci and Balenciaga have tested selling virtual accessories which are displayed in various digital formats and simulated worlds. Nike acquired RTFKT Studios, which revolutionized digital sneakers.
Digital wearables for your avatar are just the tip of what the metaverse means for brands. Virtual goods, services, and real estate are on the table. Will your brand jump in?