You’ve probably noticed that NFTs have taken a share of headlines in the marketing industry lately. During the Super Bowl, the NFL gave away NFTs to game attendees, while Bud Light dropped some 13,000 NFTs featuring “real life” sunglasses. Meanwhile, the Gap, Pepsi and have all created NFTs.
If you’re new to NFTs, here’s a primer of what they are and what value they bring to a brand.
What is an NFT?
“Non-fungible” means it’s unique and can’t be replaced. NFTs are often likened to baseball cards, since if you trade one for another, you lose your initial NFT and gain a new one.
What does the blockchain have to do with NFTs?
Most NFTs are part of the Ethereum blockchain. Unlike Ethereum, NFTs store extra information that make them work differently.
What’s the most expensive NFT ever sold?
Artist Pak sold his artwork “The Merge” for $91.8 million on Dec. 2 . The runner-up was Beeple’s “Everydays: the First 5000 Days” for $69.3 million.
Which brands have created NFTs?
In addition to the brands previously mentioned, the NBA has launched NBA Top Shot, licensed NBA moments on The Flow blockchain from Dapper Labs. Playboy has plans to rebuild its brand in the metaverse, and last October, dropped its first NFT collection, a series of 11,953 bunny avatars called “Rabbitars.” In February, Verizon asked consumers to send information on their worst Valentine’s Day gift, using the hashtag #MakeItUltra. Eighteen winners had their gift made into an NFT by Chibi Labs. The NFTs are viewable on Opensea.io.
What do people do with them?
According to a thread on Quora, some people HODL (hold on for dear life) to NFTs for projects they believe will have long-term value. Other people trade them. The model right now appears to be a patron supporting artists.
Why are businesses interested in NFTs?
This trend is based on the fact that people are spending more time in digital worlds. "When customers gravitated toward malls, brands followed. When customers gravitated toward e-commerce, brands followed," Dr. Dustin York, associate professor at Maryville University, told Forbes. "And when customers are now gravitating toward Web 3.0, digitally native brands are following, giving even more legitimacy to NFTs."
What does this have to do with the metaverse?
Investors speculate that as consumers spend more time in virtual worlds daily, they will begin to offer items for sale. One idea is to hold fashion shows in the metaverse.