NFT: the idea always wins

magazine
Alberto De Gaspari
16 February 2022

Now the word NFT is on everyone’s lips and the same things are always said about this topic. In fact, many articles begin like this:

«Here are 6 simple steps to immediately create your first NFT (non-fungible token):

  • Activate a wallet (CoinBase or others)
  • Register on OpenSea or another marketplace
  • Upload an image, video, tweet or 3D model in any format
  • Provide the marketplace with a name and description of the NFT
  • Choose the type of protocol to use (e.g. Ethereum or Polygon)
  • Press “create”»

Done. You have now created your NFT. Nobody bought it.
NFTs are a bubble.

What many don’t say is that several artists and brands followed these steps to the letter and, in the rush to get there before the others, created their NFTs in unsuspecting times.
Result? A few front pages in online magazines but many projects without real feedback on the market, without a clear direction, a structured strategy, an idea.

Our task as marketers and technology enthusiasts is to analyze new phenomena and study the right strategy to transform them into corporate assets.

Let’s start with the analysis.
Let’s briefly see what the NFT phenomenon is and how it was born.

It is essentially a cryptographic token, created to generate digital property.
The token is governed by a smart contract, i.e. a digital contract signed by two parties and stored in the blockchain. Through this contract the value and consequently the potential profit are determined.

The evolution from digital works of art to virtual objects has been sudden.
The concept of NFT understood as an artistic work (see the Bored Ape Yacht Clubphenomenon) is today accompanied by a much broader extension, which embraces the entire market for the exchange of virtual objects.
An NFT today can be a virtual terrain, a sword in a video game, a special ticket to attend a concert.

Adidas presented a drop of 30,000 NFTs, in co-creation with a community of artists, and raised almost 24 million dollars thanks to a clever mix of virtual and real.
The owner of the NFT released by Adidas will be able to wear the clothes from the collection in the Metaverse and redeem the products physically in 2022.
Adidas has thus created an extremely loyal community of early adopters, and will also have a sample of customers available in the future to test the collections in preview.

An extremely interesting operation was implemented in the NBA.
The US league has understood that Gen Z enjoys sport in a completely different way: short and dynamic formats were almost always preferred to the long matches on the schedule.
For this reason he took advantage of content that he already had available, match highlights, and created “NBA Top Shot”. A series of highlights of the most famous matches sold in the form of videos, with an exclusive digital contract for owners.
We can compare Top Shot to the sticker albums we collected as children, with the small difference that for NBA we are talking about a 1 billion dollar business from the moment of release.

So we ask you, does it still make sense today to create NFTs with the sole purpose of making them collectible? As the good ones say: it depends.

The virtuous examples we have just seen work because brands have been able to dominate creativity and strategy in a perfect marketing mix.

You will answer: but I’m not Adidas, I can’t create a collection of NFTs and hope that people will rush to buy them.
Absolutely true, we would say.
It’s about going in search of that added value that enriches the relationship with your community.

Let’s think for example of a gym that needs to communicate the first opening.
It therefore decides to reward the first subscribers by distributing a limited number of NFTs, offering a series of benefits such as: access to all courses forever, a monthly supply of supplements, guaranteed participation in events and exclusive dinners.
Customers will be highly loyal and will feel part of a small circle that they will be careful not to abandon.
On the other hand, as the prestige of the gym increases, the value of the NFTs distributed will also increase. This will create a market in which the first owners will be able to resell their NFTs at a higher price than the initial one.

The potential for companies is exponential and being ready will be crucial.

If you want to know more, let’s have a chat. Even if you don’t have a gym.

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