NFTs.
Can you name a current phenomenon that is as widely discussed but more frustratingly difficult to get your head around? NFT refers to non-fungible tokens—unique, unreproducible digital assets that someone can buy or sell. They can take many digital forms, from artwork to tacos and well beyond. It’s hard to miss the prominent brands that are jumping into NFTs, many from fear of missing out on the next cool thing.
Other brands might be reluctant to get involved in this rapidly developing experience, largely because of a lack of understanding around how NFTs can be useful. They might think it’s difficult to create NFTs, requires hiring crypto expertise or has the misperception of being inherently risky and speculative.
Luckily, that’s not the case. Here’s a closer look at why and how NFTs are being used by organizations today—for ticketing, digital merchandise, fundraising, brand loyalty and more—and the new possibilities that are driving the technology’s development and expansion.
New audiences and markets
An important way that brands should be thinking about NFTs is their potential for opening up new markets—specifically, crypto-native audiences.
According to Statista, there are about 81 million blockchain wallet users worldwide as of February 2022, up from about 69 million a year earlier. Blockchain wallets enable the use of cryptocurrency, and their users are educated, tech-savvy early adopters. Reaching these folks with NFTs is an excellent way to engage a substantial new group of potential customers.
And here’s another thing: We’re in the middle of a 10-year transition where people will own digital assets more readily. Brands that hop aboard now will be seen as cutting-edge, lending to an ability to build new relationships. The halo effect of being tech-forward and aligned with the emerging metaverse might just be enough to create separation between your brand and its competition.
I recommend that brands start with creating digital collectibles, like trading cards, memorabilia, ticket stubs commemorating fan-favorite events, notable events in the brand’s history or sponsorship moments. Budweiser hit several of these targets squarely with its Budweiser Royalty NFT Drop celebrating emerging musical artists. Coachella Collectibles NFTs offered lifetime access to its annual music festival, as well as digital collectibles of festival photos and sound. And Nike bought a virtual shoe company that makes sneakers for the metaverse.
The most exciting thing is that your brand, too, can create a headline-worthy project. Voice is proud to be leading the way for NFT adoption. In November we presented a gallery exhibition of 26 rising artists to kick off the NFT.NYC conference, with attendees admitted via tickets minted as NFTs on Voice. In December we partnered with the Museum of Graffiti for a Miami Art Week event, demonstrating the use of NFTs as a “proof of attendance” gift for visitors. Not only did the events create super buzz for the Voice brand, but positioned us accurately for what we do best—supporting emerging creators and communities in an exciting new way.
There are many more examples in this continually updated list of the various ways brands are using NFTs. It should give you some great ideas of their many possibilities and start your digital juices flowing.
Take it slow, but go!
When getting started, the most important point is to just keep it simple. Kick things off by offering free NFTs to your most loyal fans. Real-life events are great tie-ins because they naturally lend themselves to memorabilia. NFTs allow fans to prove that they went to your event, giving it a lasting impact long after the last guest goes home. And by providing NFTs in exchange for information, you can gather more details about their brand and product preferences.
Still concerned about expense and lack of expertise? No worries. On Voice you can set up an account with only an email address (no crypto wallet necessary), and you’re ready to create your initial NFT—for free.
1. Click the Create option in the Voice header (or go to voice.com/create), and enter a title.
2. Upload your media file, whether a single NFT (1 of 1) or multiple ones (called editions).
3. Enter a description of your work.
4. Review your work to make sure everything looks exactly as you’d expect.
5. Select Create and there you go—about 5 minutes from beginning to end.
Being friends with the environment
A prominent stumbling block remains for those still on the NFT sidelines: negative press over the huge amounts of electricity generated by the cryptocurrencies used to buy and sell them. Let’s face it, you don’t want customers thinking you’re responsible for generating tons of planet-heating carbon dioxide emissions. For most brands, this is a dealbreaker.
Voice is proud to offer an alternative with our carbon-neutral NFT marketplace experience. That’s made possible by our blockchain, which uses Delegated proof of stake, a consensus algorithm that doesn’t require huge server farms to mine for a solution. Plus, we use data centers that rely heavily on clean energy.
The bottom line: NFTs are rapidly becoming an important part of the metaverse discussion. The sooner you get started the better, so why not give it a try?
