Author’s note: Financially and mentally invested in some of the projects mentioned below. Also, most NFTs won’t hold value. With all the crypto-exchanges getting hacked and millions in crypto stolen, ever heard of NFTs getting stolen?
Exactly.
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What is real?
2021 was a watershed year for NAVIC. We made, we taught, we won. At the same time, the mind wanders into the tailwind sector of cryptocurrencies and decentralised economies.
With scams, investment opportunities, brand integrations and partnerships galore, the NFT space grew 20x this year over 2020. The word NFT became so famous that the Collins dictionary actually made it the word of the year for 2021.
NFT, or non-fungible tokens, are essentially entries on a blockchain that authenticate any digital asset – a land parcel in a game, a GIF, an image, a 3d rendering or a photo of your mom.
NFTs only hold value due to one or more of the four broad reasons
- Art & culture: Memes, cryptopunks (enthusiasts) and internet memorabilia
- Inherent value: NFTs that hold exclusive rights or grant access to events like BAYC
- Staking & mining: With some platforms like MOBOX, users can buy NFTs to mine the native cryptocurrency of the platform
- Branded and/or celebrity: When released as the first of any kind – especially connect with a brand or celebrity, NFTs hold value for sheer rarity and exclusivity
What is the metaverse?
Here the metaverse is defined as the future of the Internet, a shared 3D virtual universe in which users can exist forever. Over the next few years, the metaverse will be the place where the digital world and the physical world collide in what some people already call phygital. (I’m not one of those people) The metaverse is the promise of something new, something that brings digital experiences to the real world and vice versa
Look out! Brands are coming.
The metaverses will influence the consumer industry, but the companies that benefit most from Metaverse are global consumer brands. In its essence, as long as the experience is unique, creative and social, the immersive Internet will allow continuous interaction with the brand. For marketers, the metaverse provides many new opportunities to promote products, services and brands. Metaverse provides challenges and opportunities for brand owners who want to interact with new consumer groups and build brand loyalty through digital and virtual goods and services.
Some visionary brand owners have taken steps to register their brands for goods and services related to Metaverse, including downloadable virtual goods for virtual online worlds, retail stores with virtual goods, and digital collection services. Nike is quietly preparing to enter Metaverse and sell digital versions of its iconic sportswear in multiple Metaverse spaces. Nike is not the only company considering the role of the brand in the meta universe.
For decades, consumers have looked for the trendiest and trendiest garments to showcase their tastes to the world, and as the metaverse continues to grow in importance, brands are betting that these fashion preferences will carry over to virtual characters even when there are no physical items. connected. Fashion brands have found a home in gaming worlds lately, and as platforms based on the metaverse continue to grow, these opportunities should also grow. Brands like Warner Bros., Hyundai and Gucci have built their own virtual worlds; Coca-Cola, Anheuser-Busch, and Crockpot tiptoe into space selling NFTs – non-fungible tokens bought and sold on blockchain technology that allow people to own digital items like images or videos – while Sephora, Nike, and HBO support AR … and virtual reality experience. Brands ranging from sportswear giants to luxury suppliers such as Balenciaga and Gucci are rapidly considering – and in some cases actively testing – how they can use the metaverse (that is, a space that combines immersive virtual reality, huge gaming platforms Multiplayer online game, and various other aspects of the Internet) to connect with consumers and generate additional income.
Not only will brands be able to interact with young consumers in a local environment, but brand marketers will also have new opportunities, including virtual and real estate sales through NFTs. Whether it is to increase existing audiences or establish new relationships, every brand will have the opportunity to build strong relationships in the meta universe. However, for a brand seeking a place in the meta universe, the road to it is not as easy as going deep into the world itself. From billboards and videos in gaming environments and co-created spaces to interactive advertising and experiences, brands have huge opportunities in how to communicate in today’s new physical and digital mixed reality.
So are digital assets mandatory?
It’s about perspective. Where would you rather live most of your life? The idea behind any asset is the same – it’s direct use-case. For fashion and lifestyle products that work specifically on the psyche of customers and the people who see them, it’s a no-brainer to part of the metaverse. Think about it – the little pony on your Ralph Lauren polo shirt has the same effect as it would on your digital avatar i.e. I like/can afford this.
According to Gucci, it is “only a matter of time” for the brand at this point in time for major fashion houses to start using non-fungible tokens (NFTs) and other aspects of digital fashion. Fashion Month ends in October and many brands have included NFT and digital clothing in their collections.
Grab on to your Metamask wallets. Exciting times are coming.
Stay curious. Stay secure.
See you next week…
The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.
NAVIC aims to educate, inform and train students, professionals and entrepreneurs about the future of communications. NAVIC has collaborated with SCoRe for its flagship course: EVOLVE – A first of its kind curriculum that discusses hyper-relevant subjects like Meme Marketing, Trolls and Bots, AI in communications and more.
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