Non-fungible tokens, or NFTs, are the cornerstones of Web3, an open, 3D-immersive internet where digital and physical worlds blur and new business models are born. While global consumer brands, including Coca-Cola, McDonald’s, Nike, Gucci, Pringles and Taco Bell, build out their first-mover advantage with marketing initiatives that boost brand “coolness,” media companies are gaining traction with creative strategies that harness NFTs to do more than badge social media profiles. They are anchoring entertainment franchises that are attracting new audiences.
Their approaches teach an important lesson: The real action isn’t in hawking collectibles. It’s in cultivating new communities around valuable IP.
At a basic level, NFTs enable digital assets to become collectible and investible. Themed collections of NFTs continue to make headlines (and money) for creators and traders. Among these, the series of pixelated faces known as CryptoPunks make up 5 of the top 10 largest NFT sales. Likewise, the Bored Ape Yacht Club, a series of 10,000 ape faces, has skyrocketed in popularity, and one even made the cover of Rolling Stone. The limited-edition zine drop last fall sold out within 30 minutes.
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