Over the last few years, technology has been advancing quickly, with one of the fastest developments being in the blockchain industry. However, that doesn’t just mean cryptocurrencies such as Bitcoin and Ethereum are here. That’s because there’s been a new development in this niche, called NFT, or Non-Fungible Token.
Although NFTs have been around for at least a couple of years, their popularity really came into the mainstream in the last year, and they are now considered a very popular investment. NFTs are unique digital collectible pieces that can’t be exchanged for anything other than currency, and there are no two NFTs that are alike. They’re created using blockchain technology and they’re identified as cryptographic assets.
These digital collectibles were first introduced back in 2017 when the company CryptoKitties started creating a mix between trading cards and Tamagotchis. Each NFT that the company minted was unique and could only be traded for cash values– sometimes of over $100,000.
One of the biggest reasons why NFTs are so important for brands and corporations is because they can be used to represent different digital files such as video, audio, and quite commonly, art. Because of the interest they’ve generated all over the world in the last few months, these digital collectibles have given companies a new way to tell stories and interact with consumers.
With the help of NFTs, companies can increase brand awareness, encourage customer interaction, create unique experiences for their consumers, and generate more interest in the business and its solutions. At the end of the day, utilizing NFTs means that companies are able to generate more sales and increase their bottom lines.
Many consumers these days prefer making purchases from companies that share their own values, which is why companies should be sharing what they support publicly. Taco Bell is one of the corporations that has been consistent with this effort though its foundation. However, the company started selling taco-themed GIFs as NFT products to their customers that wanted to support a scholarship fund. The brand managed to sell every NFT it created in less than half an hour after they were put up for sale, and each one sold for thousands of dollars.
The music industry has been saturated for decades, which means musicians have to work hard to stand out from the crowd. One of the bands that has managed to do this with the help of NFTs has been Kings of Leon, which created digital collectibles for their latest album, featuring audiovisual art. The band managed to connect with fans through the NFTs, and although the new album was available on all music platforms, the token created more interaction with the fan base.
Although this type of digital collectible is relatively new to the mainstream, people are willing to spend money on them and collect them. This gives a positive signal that NFTs are here to stay for the foreseeable future, which means companies can utilize them in their promotional strategies.
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