A maturing of the NFT ecosystem

As one cycle ends, another begins. NFTs are dead, they say. And they may well have a point.??

Because right now, the market is bleeding a slow death. And most people think they’re just useless JPEGs, wash traded by insiders and holding zero intrinsic value.

By James Caunt

However, if you look a little deeper, there has always been plenty of substance behind the speculation.

The very nature of NFTs — unique, verifiable, and traceable assets on a blockchain — means that they’re incredibly useful. In fact, they solve two of the biggest obstacles digital assets have faced so far: authenticity and scarcity.??

And with the digital art bubble now well and truly burst, there’s finally space for innovative and game-changing NFT use cases to emerge.?

For many, the crypto price crash has been a blessing in disguise.??

Times they are a-changin' ?

We definitely see signs of a maturing ecosystem. As we predicted a few months ago, big brands are starting to get involved, enticed by passionate, tight-knit communities and opportunities for quirky and inventive brand engagement.??

Because it’s pretty obvious that people don’t want to be advertised to anymore.??

They don’t want their personal data to be collected and sold to the highest bidder. They’re tired of giant tech companies dictating their digital lives with manipulative algorithms and ever-more invasive ads.???

They want to feel a connection, to be part of something.?

NFTs are the backbone of Web3?

This is the advantage of Web3. With its core tenets of community, ownership, and decentralization, the power is given back to the users.???

NFTs are a key part of this. First and foremost, they prove ownership within a community.??

For example, if your wallet holds a certain NFT, you automatically gain access to that community. Different communities can offer various benefits and incentives for holders, including engagement rewards, voting rights, merchandise, access to real-life events, and so on.???

The result? The kind of interactive, engaged, and invested communities that brands can only dream about.

Brands that are slaying the NFT game?

Are we about to enter a new era in NFTs? We think so!?

As we head into 2023, some businesses are already exploring the true potential of this misunderstood asset class. Let’s take a quick look at some next-gen NFT projects for the year ahead and give you some ideas on leveraging Web3 for your business.?

Porsche?

Luxury brands are leading the way with Web3 integration, attracted by the authenticity and exclusivity that an accompanying NFT collection can create. According to reports, Porsche is about to set the bar with “the most beautiful and compelling NFT concept we've seen to date.”?

Beginning in January 2023, Porsche NFT holders will be taken on a “journey” comprising virtual and real-life experiences. Imagine, for example, getting access to exclusive events worldwide, tickets to race days, or even a few laps in your favorite car at the local track.?

The concept opens up various ways to interact with community members and enrich their experience. It also expands the ownership group — you don’t need to own an actual Porsche to get your hands on an NFT. That said, ownership will still be highly exclusive. Only 7500 NFTs of differing tiers (Performance, Heritage, or Lifestyle) will ever be created.???

Nike?

Another company looking to foster community and augment its physical products with digital counterparts is Nike. Swoosh is a digital space that’s designed to “give you the opportunity to co-create the future of Nike.”?

Nike wants Swoosh to be a marketplace for its virtual products, where users can collect, trade, and flex their NFT wearables in games and other digital experiences. They’ll also have the chance to participate in community challenges, creating their own designs and collaborating with other members to build next-gen virtual products.??

Swoosh will complement Nikeland, a metaverse project that has already seen more than 26 million visitors since its launch in November 2021.???

Metaverses will, according to Mckinsey, generate up to $5 trillion in value by 2030. Vast and detailed virtual environments promise a new layer of exploration and interaction, with users able to travel between worlds with their carefully curated persona.??

However, we are still in the early stages, and users have yet to embrace the metaverse fully. Nike plans to entice users with a “phygital” approach — physical products and experiences that come attached to digital purchases.??

“We’re learning that buying a virtual product isn’t the end of a purchase journey. It’s the beginning of it.” — VP/GM of Nike Virtual Studios, Ron Faris.??

Starbucks?

Loyalty programs are a brand’s ideal entry into NFTs, and Starbucks is setting the standard. They’re one of the first companies to integrate NFTs with a comprehensive loyalty program at scale.?

“We‘re creating an accessible, digital community enabled by Web3 technology where Starbucks Rewards members and our partners can connect through unique experiences and come together around the love for coffee,” — Brady Brewer, Starbucks executive vice president, and chief marketing officer.??

The coffee giant’s Odyssey experience is a series of “digital collectible stamps” that allow holders to unlock access to new, immersive coffee experiences. Users can engage in interactive games and journeys to earn their NFT stamps, which unlock access to unique benefits and experiences.??

Imagine a virtual espresso martini-making class, invitations to exclusive events, or even trips to a coffee farm. Coffee and community go hand-in-hand, and by creating shared experiences, Starbucks is building an active and engaged customer base that will stay loyal for a lifetime?

Anybodies?

You might’ve noticed a few keywords that keep popping up. Brands are integrating NFTs because they’re looking to make the customer experience more immersive, interactive, and community-focused.??

Anybodies is an NFT project that’s helping to build this infrastructure. They’ve developed QR codes and NFC tags that can easily connect physical products and spaces to NFTs.??

So how does it work???

Well, let’s say you buy a special hoodie with an NFC tag woven into the sleeve. This tag holds the metadata of an NFT you own, which provides access to a specific event, for example, or a free cup of coffee. With a simple tap or scan, your hoodie is now a ticket to all kinds of access and perks, which you’ve earned by being a valued member of a particular community.???

A seamless blending of physical and digital is the next step in marketing, and Web3 companies like Anybodies are making it possible.??

Brands are already using this tech to create custom in-store buying experiences, offer location-based deals and discounts, and reward loyal customers with exclusive access. Toys”R”Us, for example, has recently partnered with Anybodies to release its own digital collectibles range, complete with a full suite of “phygital” experiences.??

2023 will be a big year for NFTs?

The narrative is changing. Utility is now king, and big brands realize the potential of Web3 to transform their relationships with their customers.??

NFTs, digital collectibles, or whatever you want to call them, will soon become a part of our everyday lives.??

Prepare for this by familiarizing yourself with the NFT scene. Look for projects that are developing the tools and infrastructure for mass adoption and think about the potential use cases of Web3 for fintech.??

Can your business benefit from immersive and interactive customer experiences? How about a passionate, engaged community actively invested in your success???

Whatever your particular needs, you can start easily by onboarding Web3 users. That gives you the option of either launching an NFT collection of your own or building prototype apps for NFT management. Tools that display and organize NFTs across blockchains have a huge potential audience! Use insightful Web3 analytics to understand your community and react to their needs based on metrics like location, transaction history, purchase behavior, and more with DeepSonar — powered by Blockmate.

The opportunities that an NFT-gated Web3 community can provide are limitless. Don’t get left behind in the race for Web3 — start exploring ways to position yourself for the upcoming transition.

Because no, contrary to widespread belief, NFTs are not dead. They’ve simply grown up.

In the next edition, we’re going to look at various industries, solutions and use cases, and how businesses are integrating Web3.