{"id":79469,"date":"2022-03-03T18:23:03","date_gmt":"2022-03-03T18:23:03","guid":{"rendered":"https:\/\/rockcontent.com\/?p=79469"},"modified":"2025-09-19T03:47:21","modified_gmt":"2025-09-19T06:47:21","slug":"nft-benefits-for-brands","status":"publish","type":"post","link":"https:\/\/pingback.com\/en\/resources\/nft-benefits-for-brands\/","title":{"rendered":"NFT Grows 11,000% In A Year \u2014 Is It A Good Idea For Brands To Think About It As A Strategy?"},"content":{"rendered":"

If following the news is part of your everyday life, then you’ve probably come across the term NFT several times in the last few months. The acronym that stands for Non-Fungible Token<\/strong> was elected the word of the year by Collins Dictionary<\/a>, with a meteoric growth in its use of more than 11,000% in 2021<\/a>. The reason for this increase is that last year NFTs generated $23 billion dollars in negotiations according to the 2021 Dapp Industry Report<\/a>, and everyone seems to want to know how to enter this billion dollar market.\u00a0<\/p>\n

Companies from all over the world have joined the NFTs race as a way to rethink their branding and be closer to markets that are still underexplored. But, what are NFTs anyway? <\/p>\n

About NFT and Blockchain<\/h2>\n

As I said, NFT is an acronym that stands for non-fungible token. In technology, the word token can be defined as a digital representation of an asset. Non-fungible means that something cannot be replaced with something else. An easy way to exemplify what is a non-fungible asset is the art market: how many paintings by Van Gogh are worth a Mona Lisa? There is no such relationship, as they are unique, distinct and irreplaceable works. On the other hand you can exchange a $10 dollar bill for 2 of $5 dollars because they are fungible.<\/p>\n

These unique, distinct and irreplaceable electronic codes are recorded by the blockchain system, which is the same technology used in cryptocurrencies, such as Bitcoin<\/a>. The blockchain<\/a> system records transactions in an encrypted form and the information included in the blockchain cannot be changed, in theory. In this way, the single file of the digital asset is connected with the single certificate generated by the blockchain, guaranteeing the authenticity and ownership of that asset. In general words, NFT is a unique digital certificate, registered on a blockchain, which is used to register ownership of an asset such as a work of art or a collectible.<\/p>\n

Any person or company can link their assets, whether digital or physical, to an NFT, just look for a company that does the service and a fee is usually paid for the creation of these digital assets. These assets are usually traded on marketplaces, such as OpenSea<\/a> and Rarible<\/a>, which act as showcases where NFT owners can leave them exposed to receive purchase offers.<\/p>\n

How are brands using them and what results are they getting from it?<\/h2>\n

NFTs became popular due to millionaire transactions for works of art such as the Beeple\u2019s The First 5000 Days<\/a> and by celebrities joining the movement as belonging to a club that has exclusive assets. Neymar, Jimmy Fallon, Eminem and Snoop Dogg have images of monkeys generated by algorithms, the Bored Ape Yacht Club<\/a>, bought for millions of dollars.\u00a0<\/p>\n

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Although they became famous due to these events, NFTs are an emerging technology. There is a blue ocean of possibilities for brands and it is already possible to see some microtrends emerging due to new behaviors and technological innovations. After its popularization, it was possible to observe companies from various sectors adopting branding strategies using NFTs as power to connect with customers and do new business.<\/p>\n

Clothing<\/h3>\n

Some companies have been working with the connection between the physical and the digital. <\/p>\n

This is the case for companies like GAP<\/a> and Adidas<\/a>, which have created exclusive NFT collections that enable the buyer to access physical pieces exclusively. The strategy behind these initiatives is mainly aimed at heating the spirit of community and exclusivity behind the brands, strengthening the idea of creating fan clubs and customer loyalty.<\/p>\n

Other clothing brands have decided to adopt collaboration strategies. This is the case of Gucci <\/a>and Nike<\/a>, which invested in shares with companies and artists to create apparel collections available on NFT in exclusive partnerships expanding its visibility and reputation.<\/p>\n

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A post shared by Gucci Official (@gucci)<\/a><\/p>\n<\/div>\n<\/blockquote>\n