Weekly Web3 Recap 25/05/2024

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Another Saturday, another update on what has happened at the intersection of Web3 with sports and business.... welcome back! ??

Today we'll talk about HUGO BOSS' Web3 loyalty system, the most expensive UGC item ever sold on Roblox, Mercedes Benz's new series of the Icon collection, the Ethereum ETF(s), crypto regulation in the USA and Red Bull Racing's digital art drop series.

?? HUGO BOSS XP

The German fashion company has taken its current loyalty system to a new level and underpins it with a new tech stack. HUGO BOSS XP unites classic mechanics such as level and points with blockchain-based elements. It's supposed to be an omnichannel experience that comes together in their app. By leveraging Web3 tech customers will be able to collect and redeem digital assets by purchases and other interactions in the brand's ecosystem. Those will then act as keys to unlock exclusive products, experiences and more from their brands BOSS and HUGO but also from partners. They've also announced that there will be the opportunity to trade those earned digital assets in the future. Btw. the program will launch in the UK on 10th of June. Link

My take: While others slow down or take their chips off the table, HUGO BOSS doubles down. What excites me most however is the approach that the brand has taken. They're integrating this into their core program and are using Web3 tech to advance the traditional loyalty offering.

Additionally, the program will spread across multiple touchpoints both in the physical and digital world and will involve partners too.

In terms of execution I'm convinced that HUGO BOSS will set high standards in the industry. This is especially because of activations they've already done that involved various partners and touchpoints and their existing experience with Web3 based rewards systems - They've an active program that rewards employees for completing trainings in their HB University.

?? The most expensive Roblox item

Adidas has partnered up with WhoseTrade - a Roblox creator - to release a one of one in-game diamond chain. It has been sold just yesterday for 2.000.000 Robux. That makes it the most expensive UGC item on the platform. For those who aren't familiar with the exchange rates to Robux - it's about 20.000$. Link

My take: It is very clear that digital consumer products are playing an increasingly important role, especially among young target groups. There are ready to spend "real" money on that. However, such UGC items in Roblox, skins in Fortnite and many other digital stuff is actually rented for the very platform than really owned by the consumer. It's locked in that very ecosystem. That also makes it harder for brands to leverage such information and blend physical and digital.

The punchline: Owning digital stuff is real and blockchain is set to enhance that experience.

?? Mercedes NXT "The Era of Technology"

The Web3 devision of Mercedes Benz has released yet another collection of their eras tour or Icons collection as they call it. It features various vehicles from 2000 to 2017 - my favorite is probably the G63 6x6. Additionally, they have communicated that collectors of their Icons collection will be invited to a community event in Affalterbach and will be able to test-drive the top-end vehicles of the brand - at least in DE, NLD and USA. Link

?? The Ethereum ETF

The SEC approved the 19b-4 applications for all spot Ether ETFs last night. Almost five months after the approval of the Bitcoin ETFs, soon also ETH will be accessible for traditional securities accounts and therefore traditional investors. There is another set of applications that has to be approved, which is probably just a formality that might take some weeks. However, with that Ether is de facto a commodity which has been a point of contention for years. Link

Advertising wise, we've already seen the first commercial for an Ether ETF from VanEck that positions the crypto currency respectively the underlying network as a kind of digital oil for an open source, decentralised and "owned" internet. Link

?? Financial Innovation and Technology for the 21st Century Act

Developing legal frameworks for crypto currencies and digital assets has been on the agenda for many jurisdictions all over the world. Interestingly, the market that has arguably benefited most from past innovation cycles has been a negative example in that realm. However, with the positive vote on the FIT21 they're set to establish a regime to regulate the crypto markets, set consumer protections, make the CFTC a leading regulator of digital assets and what's most important clearly define what makes a crypto token a security, a commodity or maybe even non of the both. Link

??? Red Bull Racing's Velocity Series 2.0

The first piece of this year's Velocity Series - the digital art program of Red Bull Racing - is set to be released in the course of the Monaco GP. I'm especially interested in how the announced more accessible version of the program will look like. If you want to see a teaser of the digital art drop: Link