You’ve no doubt heard a lot about NFTs or non-fungible tokens by now.
If for whatever curious reason you haven’t, they’re essentially a form of digital goods that can be purchased and traded online, much like art is traded in the real world.
A number of brands are now realizing the brand and revenue-building potential of NFTs.
And we’re not talking small amounts of revenue either. The New York Times sold an image of a column it published, incidentally about NFTs, as a digital good for $560,000.
With that said, here are five brands leading the way in the commercialization of digital goods.
The sports apparel behemoth has used NFTs as a patent for its digital footwear. Its Cryptokick NFT links a digital shoe to its counterpart in the physical world. If you sell your physical shoes you sell their digital equivalent. The NFT also buys owners access to online sneaker forums and can be worn by your avatar as digital fashion in video games such as Fortnite.
Leading the charge into the world of NFTs would have to be the Dapper Labs with its NBA-licensed Top Shot tokens — effectively digital video highlights that can be traded, not too dissimilarly to physical basketball cards. Top Shot has generated almost a billion dollars in sales in little over a year and having recently raised $250 million, it is now worth US$7.6 billion.
The fast-food giant developed taco-themed images that it sold on Rarible — an NFT marketplace. It listed 25 NFTs at $1 and they sold out within 30 minutes, the highest-valued going for $3,000. That’s one expensive taco.
CryptoKitties — the world’s introduction to NFTs back in 2017 — are a little dated now, but Warner Music’s collaboration with Dapper Labs hinted at the potential of NFTs in the music industry.
Today, both established and up-and-coming artists are using NFTs — images, beats, and so on — to either supplement or generate the lion’s share of their income.
If your brand is interested in making its own NFTs, then consider:
1 — your objectives and target audience
2 — what kind of NFT to develop — including aesthetics — to meet objectives.
3 — where to mint and host the NFT (such as OpenSea)
4 — how to effectively promote the NFT (probably the most important step to a successful campaign)
Contact the team at Collective Campus for guidance in shaping your brand’s NFT strategy.
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