NFT from you, NFT from me
Before you run to the digital NFT marketplace, it's good to know what an NFT actually is. No doubt you've heard the term passed by before. But what exactly do NFTs entail? NFT stands for Non-Fungible Token. It is a digital proof of ownership. Whereas physical works of art have a paper certificate, owners of NFTs get a digital version. This proof is stored on the blockchain. That is an online database that decentralises and stores information about the creator, traded prices and owner forever.
No copycats
What is the big advantage of NFTs? In the digital world, it is increasingly difficult to distinguish between real and fake. Thanks to NFTs, this can be done. Copies are therefore easier to spot. Now, this question is not yet in play on a large scale, but as our lives increasingly take place online, chances are it will. Compare it to fake branded clothes. Where you used to get away with a Gucci from Turkey, selling it is now a criminal offence.
Club of bored monkeys
So what can you do with NFTs? Many, many things. One of the biggest NFT projects is the Bored Ape Yacht Club. Four friends drew cartoons of bored apes, sold them as NFTs and attached a community to this. Only owners of the Bored Ape NFTs get access to this community, and thus to exclusive parties. Thanks to famous owners such as footballer Neymar and rapper Eminem, the NFTs go over the counter for hundreds of thousands of euros and are a 21st-century status symbol.
In front of the music
Other examples come from the music industry. For example, singer-songwriter Lil Nas X, known for the hits Old Town Road and That's What I Want, sold NFTs through which owners receive a share of the royalties from his latest album. Rock band Kings of Leon published an album of previously unreleased songs as NFTs. They also sold six golden tickets, which give free admission for life to any of the band's concerts. A godsend.
NFT's for fans
In an increasingly digital world, there is a growing demand for new ways to shape this virtual reality. This offers opportunities for companies. Brands like Nike, Coca Cola and Gucci already took the plunge. Besides extra media attention, this earned them a new bevy of - mainly young - fans. By giving exclusive benefits to owners of NFTs, these companies connect current and new customers to their brand.
The first Prince Sausage Bread
NFTs can also be used in a playful way. Together with sausage bread bakery Pulskens, Capital Advertising was one of the first Dutch companies to offer NFTs. We did so in the run-up to Carnival. By corona, few villages had designated a Prince and Adjutant. Pulskens changed this digitally by raffling off NFTs that virtually made the owner prince or adjutant.
The collectibles to be won referred to Pulskens and the local carnival associations: Prince Worstenbrood d'n Irste, Prince der Pezerikken, Pinnekleuvers, Stopnaolden, etc. The NFTs were raffled off on social media in the week before Carnival. Winners not only received an NFT, but were also allowed to pick up a bag of sausage rolls for free at the shop in Hilvarenbeek.
Football stickers 2.0
We also see opportunities for other companies to use NFTs. In sports marketing, they can act as football cards 2.0. For luxury brands, NFTs are an opportunity to give exclusive benefits to loyal fans of the product. And so there are many more ideas to come up with to take the first steps into this digital world of the future.
Need help conceiving, creating or selling NFTs? Capital Advertising has the expertise to make it a success.
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