There is an ongoing plunge in interest around non-fungible tokens, or NFTs, over recent months. It still seems to be quite the knowledge gap regarding what they really are, how useful they are and whether they could become a valuable asset for individuals and businesses. There are the most notorious companies in the market that choose strategies that involve NFTs. But what are NFTs? And, most importantly, are they worth the buzz?
Appetite Creative reviews the rise of NFTs and suggests ways that marketers can embrace this new tech trend
What are NFTs and how do they work?
So what is a NFT? There’s no easily understandable answer here. A NFT is a digital asset that certifies unique ownership of an item, but without a fixed value, making it un-interchangeable. A NFT acts as a token of ownership over an item. Even if the owner of the item never even has it, the NFT proves they own it. Blockchian technology is protected by the decentralised format that cryptocurrencies are known for. These tokens can be anything from an image or video to a 3D design or animation. While they operate on a similar system to cryptocurrencies, they are the exact opposite of a currency, as they are not tied to a fixed value and therefore cannot be exchanged.
If you are still confused and want to know more about the applications of this technology in hopes of understanding it, take a look at these examples of some of the world’s biggest companies and associations and the uses they have found for NFT technology.
Nike now including a digital copy of your next sneakers
Nike, the iconic sportswear giant, has started using NFTs as a means of certifying the authenticity of a pair of trainers. When you buy a pair of the brand’s shoes, a digital version of the product is now uploaded to your “virtual locker” through an initiative called Cryptokick. The subculture revolves around collecting, swapping and reselling trainers. Nike’s incorporation of a digital seal of authenticity into the token’s physical counterpart takes things to the next level.
It is a truly unique strategy for NFTs. It is a digital collectible that is tied to a physical item. This can also be used for video game characters or online sneaker forums. This shows that digital fashion is another use for NFTs beyond the “conventional” artistic application.
Team GB’s NFTs for the 2021 Olympics
A pertinent example is the British team’s NFT campaign. This was launched following this summer’s Olympic Games, which will go down in history for its lack of international fans. The British Olympic Committee set up an NFT shop where fans could buy NFTs for various limited edition collectibles. There were, for example, murals by artist Ben Mosley or unique experiences with some of Team GB’s gold medallists. It was a great initiative that allowed fans to support their national team without having to travel to the stadiums to cheer on their athletes, recognise their achievements and raise funds for the British Olympic Association.
The NBA and ‘owning’ moments digitally
The aim was to broaden the appeal to European audiences and shift their focus to a more digital and direct-to-consumer approach. The National Basketball Association (BNA) released “NBA Top Shot”, a new online marketplace for licensed digital collectibles where fans can purchase moments of their favourite teams, players or games and receive a certificate along with an original clip in return. Trading collectible images is one of the oldest strategies for generating additional revenue in sports. The NBA has developed a system that could be the future of this field.
Does Taco Bell sell digital tacos as NFTs?
Yum Brands, the parent company of some of the world’s best-known fast food franchises such as KFC and Taco Bell, has also developed a strategy for NFTs. In February 2021, Taco Bell created a series of NFT gifs and put them up for sale on the specialised digital marketplace Rarible. All NFT gifs sold out in less than 30 minutes. The campaign proves not only that NFTs are good for pieces costing hundreds of thousands of dollars, but also for $1 gag purchases to raise money for a scholarship programme Taco Bell is associated with.he resale value of some of these pieces reached $3,000.
Coca-Cola joins the NFT trend with a charitable auction
The Coca-Cola Company launched an NFT auction in July 30 2021 for International Friendship Day. They making available their first collection of digital collectables that “re-imagine some of Coca-Cola’s iconic assets for the metaverse, with each NFT inspired by shared moments of friendship.” The auction included one-of-a-kind items such as a futuristic redesign of the iconic Coca-Cola delivery jacket. It is digitally wearable on Centraland, a ‘decentralized 3D virtual reality platform.’ The proceeds of this campaign all went to Special Olympics International, the world’s largest organization for disabled athletes.
Thinking about joining the NFT trend?
Only time will tell if NFTs are the future of art and collectibles. But there is no denying that they are an interesting case study in the digitisation and decentralisation of culture. It is definitely worth considering jumping on the NFT bandwagon. Brands that don’t currently have an NFT strategy are like brands from 1997 that don’t develop a website strategy. So if you have any questions about how we can help you or your company develop an NFT strategy or campaign, don’t hesitate to contact us.Contact us HERE.
JennyStanley, managing director at Appetite Creative.