A flurry of brands, from e.l.f. Cosmetics to CNN, this week are starting to sell their own NFTs, the non-fungible tokens stored on a blockchain that can never be duplicated.
In March brands began experimenting with NFTs, and since then, interest has not slowed. If anything, brands are getting more creative as they look to NFTs for promotional opportunities, ways to preserve their intellectual property and perhaps even drive revenue. Those hopping on the bandwagon now are taking advantage of new accessibility options available, such as allowing people to purchase NFTs using their credit cards, as well as the emergence of more environmentally-friendly blockchains. Since initial interest spiked with NFTs, brands have also found the time to develop their own platforms so they can own the consumer relationship and rake in more revenue.
There are signs that the NFT bubble might be bursting, however. NFT sales went from $176 million in May to $8.7 million by June 15, as reported by CNBC. Nonetheless, brands are bullish that consumers are just starting to learn about NFTs and will continue to take interest in digital collectibles. Success stories, like NBA’s Top Shot platform, which has generated over $230 million in gross sales on videos of NBA highlights being sold as NFTs in the same vein as trading cards, are also driving hopeful NFT newbies.
“There’s certainly a small community of crypto fans very into the space, but we’re seeing that expand quickly, which is why this is an exciting opportunity for brands because consumers are increasingly knowledgeable and excited about NFTs,” says Evan Horowitz, CEO of creative agency Movers+Shakers, which is working with e.l.f. Cosmetics on its new line of NFTs. “One of the things NFTs do is enable fans to have a deeper level of fandom and connection with brands.”
Here's a look at a few.