It’s official! NFT is now a household name known to all netizens from young to old. It stands for non-fungible token, and it’s the new blockchain buzzword. With its popularity on the internet, NFT has created a reputation for itself in the business world.
For instance, NFTs open both a brand-new revenue stream and a way to keep customers interested. Additionally, by creating their own digital artworks, businesses and individuals in a wide variety of industries can attract new generations of customers and earn notoriety while avoiding the involvement of third parties such as agents, distributors, and galleries.
This is made possible by the introduction of new use cases for NFT, says NFT expert and investor Jurgen Cautreels. The following are other ways NFTs brands can benefit from NFTs.
This might be helpful for brands that aren’t currently involved in the gaming industry. In 2021, Burberry entered the non-fungible token (NFT) market by forming a partnership with Mythical Games to release an NFT collection in conjunction inspired by the video game Blankos Block Party.
Because of the inclusion of digital vinyl toys on a blockchain in this multiplayer party game, Burberry decided to produce a non-fungible token (NFT) shark toy that can be purchased, upgraded, and resold in the Blankos Block Party marketplace. In addition, Burberry intended to develop in-game NFT accessories that could be applied to the toys, such as pool shoes and a jetpack, in order to spread brand awareness to players of the game.
In order to provide customers with the opportunity to try virtual representations of their real-world items, a number of other companies have started selling NFTs. In 2021, Nike completed the acquisition of RTFKT Studios, a virtual shoe startup, in order to further intimately engage with customers who adore collecting sneakers.
RTFKT is well-known for working together with various artists in order to provide collectors with real sneakers that come matched with virtual sneakers.
NFT collectibles have been released by brands to give customers the opportunity to acquire ownership of one-of-a-kind digital assets that symbolize their products, says Jurgen Cautreels. The Pepsi Mic Drop was Pepsi’s first-ever brand-exclusive NFT, and it was introduced in 2021 as part of a limited collection of 1,893 NFTs.
Apart from the costs associated with the consumption of gas to manufacture the NFTs, using them and minting them did not cost the users anything. In honor of the long-standing connection between the company and the music industry, the NFTs featured graphics of microphones.
The NFTs encompass a diverse range of communities located in the metaverse. By allowing users to contribute their own material, NFTs can help a brand build a following and generate buzz. For example, they can solicit ideas from their community on the types of assets they want to see and own or use them as prizes in marketing projects and contests.
This will make it possible for the brand to grow and build more relationships, both of which will lead to a rise in the brand’s overall growth.