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In recent months, there has been a steady drop in interest in non-fungible tokens, or NFTs. There still seems to be a huge knowledge gap about what they really are, how useful they are, and whether they could become valuable assets for individuals and businesses.

These are the most notorious companies in the market that choose strategies that involve NFTs. But what are NFTs? And, most importantly, is it worth the fuss?

Appetite Creative looks at the rise of NFTs and suggests ways marketers can embrace this new technology trend.

What are NFTs and how do they work?

So what is an NFT? There is no easily understandable answer here. An NFT is a digital asset that certifies sole ownership of an item, but without a fixed value, making it untradeable. An NFT acts as a token of ownership over an item. Even if the owner of the item never has it, the NFT proves that they own it.

Blockchain technology is protected by the decentralized format that cryptocurrencies are known for. These tokens can be anything from an image or video to a 3D design or animation.

Although they operate on a system similar to cryptocurrencies, they are the exact opposite of a currency, since they are not tied to a fixed value and therefore cannot be exchanged.

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 largest companies and associations and the uses they have found for NFT technology.

Nike now includes a digital copy of your upcoming sneakers

Nike, the iconic sportswear giant, has started using NFT as a means of certifying the authenticity of a pair of sneakers. When you buy a pair of shoes from the brand, a digital version of the product is now uploaded to your “virtual locker” through an initiative called Cryptokick.

The subculture revolves around collecting, trading, and reselling sneakers. Nike’s incorporation of a digital stamp of authenticity on the physical counterpart of the token takes things to the next level.

It is a truly unique strategy for NFT. It is a digital collectible that is linked to a physical item. This can also be used for video game characters or online sneaker forums. This shows that digital fashion is another use of NFTs beyond the “conventional” artistic application.

Team GB NFT for 2021 Olympics

A pertinent example is the British team’s NFT campaign. This was launched after the Olympic Games last summer, which will go down in history for its lack of international fans.

The British Olympic Committee set up an NFT store where fans could purchase NFTs for various limited edition collectibles. There were, for example, murals by artist Ben Mosley or unique experiences with some of the Team GB gold medalists.

It was a great initiative that allowed fans to support their national team without traveling to the stadiums to cheer on their athletes, recognize their achievements and raise funds for the British Olympic Association.

The NBA and digital ‘possession’ moments

The goal was to broaden the appeal to European audiences and shift their focus to a more digital, direct-to-consumer approach.

The National Basketball Association (NBA) launched “NBA Top Shot,” a new online marketplace for licensed digital collectibles where fans can purchase moments from their favorite teams, players, or games and receive a certificate along with an original clip in exchange. .

Trading in collectible images is one of the oldest strategies for generating additional income in sports. The NBA has developed a system that could be the future of this field.

Does Taco Bell sell digital tacos like NFTs?

Yum Brands, the parent company of some of the world’s best-known fast food franchises like KFC and Taco Bell, has also developed a strategy for NFTs. In February 2021, Taco Bell created a series of NFT gifs and made them available for sale on the specialized digital marketplace Raible.

All NFT gifs sold out in less than 30 minutes. The campaign demonstrates not only that NFTs are suitable for parts costing hundreds of thousands of dollars, but also for $1 jaw purchases to raise money for a scholarship program Taco Bell partners with. the resale value of some of these pieces reached $3,000.

Coca-Cola joins the NFT trend with a charity auction

The Coca-Cola Company launched an NFT auction on July 30, 2021 for International Friendship Day. They made available their first collection of digital collectibles that “reimagines some of Coca-Cola’s iconic assets for the metaverse, with each NFT inspired by shared moments of friendship.”

The auction included unique items such as a futuristic redesign of the iconic Coca-Cola delivery jacket. It can be used digitally on Central and is a ‘decentralized 3D virtual reality platform’. All proceeds from this campaign went to Special Olympics International, the world’s largest organization for athletes with disabilities.

Thinking of joining the NFT trend?

Only time will tell if NFTs are the future of art and collectibles. But it cannot be denied that they are an interesting case study in the digitization and decentralization of culture.

Jumping on the NFT bandwagon is definitely worth considering. Brands that don’t have an NFT strategy today are like brands from 1997 that don’t develop a website strategy. So if you have any questions about how we can help you or your business develop an NFT strategy or campaign, please don’t hesitate to contact us.