Five of the biggest companies already using NFTs
Despite the ongoing plunge in interest around non-fungible tokens, or NFTs, over recent months, there 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. With some of the most notorious companies in the market deciding on strategies involving NFTs, the question has to be asked: what are they? 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, but an NFT is a digital asset that certifies unique ownership of an item, but without a fixed value, making it un-interchangeable. An NFT acts as a token of ownership over an item, so even if the owner of the item never even has it, the NFT proves they own it. Protected under the decentralized format for which cryptocurrencies are known for, blockchain technology, these tokens can be anything from a picture or video to a 3D design or animation. While they work under a similar system to that of a cryptocurrency, they are the very opposite of a currency given that because they do not adhere to a fixed value they are not interchangeable.
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 needs no introduction, and the iconic sneaker and sports apparel giant has started to use NFTs as a way to certify the veracity of a pair of sneakers. Purchasing a pair of the brand’s shoes will now upload a digital version of the product into your ‘virtual locker’ under an initiative they have named Cryptokick. Given the subculture that exists around collecting, trading and reselling sneakers, incorporating a digital seal of authenticity to the physical counterpart of the token takes this to the next level. It is a truly unique strategy for NFTs given that it is a digital collectable tied to a physical item, but it can be used for video game characters or online sneaker forums – showing that digital fashion is another use for NFTs beyond the more ‘conventional’ artistic application.
Team GB’s NFTs for the 2021 Olympics
A relevant example following this past summer’s very unique Olympic Games, which will go down in history for its lack of international fans and supporters at the event, would be the NFT campaign introduced by Team GB. The British Olympic Committee set up an NFT shop where fans could purchase NFTs for different limited-edition collectables, such as wall paintings by artist Ben Mosley or unique experiences with some of the gold-medal winners of Team GB. It was a great initiative to help fans support their national team without being able to travel to stadiums to cheer their athletes on, commemorating their achievements and raising funds for the British Olympic Association.
The NBA and ‘owning’ moments digitally
In an effort to increase its appeal to European audiences and shift its focus toward a more digital and direct-to-consumer approach, the National Basketball Association (BNA) released ‘NBA Top Shot,’ a new online marketplace of licensed digital collectables where fans can purchase moments from their favourite teams, players or matches and earn a certificate along with an original clip. Trading collectable cards is one of sports’ oldest additional income strategies, and the NBA has devised a system that could very well 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 most known fast-food franchises such as Pizza Hut, KFC and Taco Bell, has also implemented a strategy surrounding NFTs. In February 2021 Taco Bell created and put on sale a series of NFT gifs on the specialized digital marketplace Rarible, with all of them selling out in under 30 minutes. The campaign not only proves that NFTs work well for pieces costing hundreds of thousands of dollars, but that it is also good for $1 gag purchases to help raise funds for a scholarship program Taco Bell is associated with. The 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, making available its 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, which 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 whether NFTs are the future of art and collectables, but there is no denying that they are an interesting case study on the digitization and decentralization of culture, so it is definitely worth thinking about hopping on the NFT bandwagon. Brands not having an NFT strategy right now is like being a brand in 1997 and not developing a website strategy, so for any doubts regarding how we could help you or your company draft a strategy or campaign involving NFTs, do not hesitate to get in touch.
Jenny Stanley, managing director at Appetite Creative.
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