Search the web for “NFTs” and you will see top results about NFTs of digital art being auctioned for millions of dollars and pixelated profile pictures being bought for thousands. It is hard to understand where the value stops & where the bubble starts. There is undoubtedly a significant amount of speculation and FOMO (Fear Of Missing Out) driving the NFT revolution. Yet, there is something fundamentally new here. For Brands, NFTs are an opportunity to redefine how they engage with their most loyal customers & their fans.
In December last year, MG Motor launched their NFTs on ngageN - an NFT platform designed specifically for brands to drive engagement with their fans. As part of the launch, MG Motor created digital collectibles inspired by the brand’s legacy. Fans and supporters of the brand had the opportunity to own a part of the brand e.g. a limited edition digital artwork inspired by the MG EX181 car that broke the land speed record back in 1957 bagging the title of the world's fastest car. The forty people who bought the NFTs of this digital collectible are the only ones who would be able to display it on their “digital walls”.
In many ways, the “digital wall” is what makes NFT valuables. A person’s digital wall is a web page or space where the content displayed is cryptographically verified to belong to the person. Social media platforms like Twitter and mobile apps are now moving towards creating digital walls for their users. Digital Walls allow users to display the NFTs they own thus giving them a way to express themselves. In the coming years, NFTs are how we will display the brands we love, the causes we support, the movies we love and the products we own. In virtual environments like video games and emerging metaverse environments, the digital wall morphs into virtual spaces like digital homes, digital cars and so much more. Herein lies one of the key value propositions of NFTs - they are digital collectibles that the NFT owners and only the NFT owner can display in their personal digital spaces.
Consider another example - Spartan Poker, an online gaming company is rewarding the top players of their poker championship with NFT rewards on ngageN. These NFTs are digital trophies that winners can display on their digital walls on social media websites & apps. Expect this to expand to cover video games and metaverse environments later this year.
As MG & Spartan were launching their NFT collection, Nike announced the acquisition of RTFKT Studios - a digital design studio specializing in the creation of digital sneakers. Nike has announced that it will start selling digital sneakers which people can buy for their digital avatars. This is a natural extension of the idea of branded digital assets.
In the last decade, a brand's social media played a critical role in establishing its identity. Today, NFTs are playing the same role. Brands are creating NFTs which communicate their identity, establish their legacy and prove their social commitments.
ngageN have extended the potential of NFTs for brands to go one step further. Besides offering fans & loyal customers to own brand digital collectibles, Brands get access to a private digital space where they can interact with the NFT holders of their brand. Think of it as a private member-only club of the brand for the most loyal supporters of the brand. Consider a fashion brand asking its NFT holders to vote on the choice of colours on an upcoming collection. Such close engagement between the brand and its loyal fans & customers creates deep emotional ownership and unprecedented loyalty.
For brand enthusiasts, the opportunity to influence their brand & co-create is powerful enough to join the club by buying a brand NFTs. This, therefore, becomes a new source of value for the NFTs.
When we put the two value propositions together, the impact that NFTS can create for brands is phenomenal. Not only do fans get the ability to show off their love for their favourite brands with digital collectibles as NFTs on their digital walls but they also get to shape the brand’s products.
Moving forward, ngageN is extending the value proposition of brands even further by integrating the creator economy into Brand Communities with NFTs. More on this coming soon. Register on ngageN's website at https://ngagen.com/ for updates or join their discord channel…
Dr. Praphul Chandra is the Founder & CEO of KoineArth, the creator of ngageN NFT platform.