Three reasons why you shouldn’t jump on the big brand NFT train (yet)

By Joe Gaggles, co-founder and CEO of Global Digital and Social Innovation Group Viral race.

I have recently been the victim of NFT fraud. I lost a total of $ 3,400 through one, not two, very similarly structured scams. I’ll give you a minute’s description of how it happened, but it wasn’t very sophisticated. Imagine for a second you were transposed into the karmic driven world of Earl.

Meanwhile, in my day job, big brand leaders are increasingly coming to me to discuss all aspects of crypto. Many, especially those buying the hype of non-fungible tokens (NFTs), want to be an early entrant. It’s understandable. Last year alone, transactions in NFTs reached .6 17.6 billion, up 21,000% from 2020. It must be a very hot place right now That said, my advice to some big brands is: Of course, dip your toes in water, but you still don’t have to dip completely into NFTs. Here’s why.

1. There is a high level of risk.

Let’s back up to my NFT scandal experience for a moment. I consider myself a futurist and technology is my passion. I have been running a social technology company for over eight years. So if I could easily fall victim to a crypto scandal, how risky are the “regular” people out there? What’s more, shortly after I lost my money, I learned that the same scammer that got me stole a staggering $ 2.2 million from another NFT holder.

This is a serious matter. Many are being deceived there. In fact Discord has many support groups – popular group chatting apps in the crypto community – where people are coming together to share information and comfort each other about the problem.

I’m not in the hole like the person who lost $ 2.2 million. But still, the frustrating part is that after this happened I was able to see my money wallet on the blockchain. And yet, there is no one to report it. For now, there is no way for me to get it back. This is the current state of space. Given what I’ve personally felt, it’s clear that there needs to be a lot of learning, integration and control in space before it can be safe for the average consumer base.

Brands need to keep this in mind. If they are not fully aware of the risks, they can be caught in the clean-up if such scams inevitably happen in this exciting, but still unknown world.

2. The crypto community is not your target buyer.

NYU Business Professor Arun Sundararajan says it is the best in its recent part HBR When he advises brands, “Your ultimate audience is the completeness of your current and future customers, not today’s crypto community.”

In fact, according to a new report, last year they owned about 360,000 NFTs, containing 2.7 million NFTs worldwide. Significantly, only 9% of these NFT holders occupy 80% of the total market. That’s just 32,400 total users আমার literally my great but small town population. To turn it off, this data focuses on counting the “wallet” number associated with the acquired NFT. Since people may own multiple wallets, the number of people actually buying and selling NFT may be much lower.

Here’s another way of thinking about it. According to a survey, it is estimated that 2.8% of the US population owns an NFT. Would you pay to put up a huge banner at a sports collegium with only 2.8% of seats sold? Exactly.

3. There are still many big payoffs to come.

One could argue that big brands are already seeing significant success with NFTs. This year’s Super Bowl, Miller Lite, Wrangler and Kia have created waves by adding technology to event ads. Others have joined the campaign, including Campbells, White Castle, the NBA, and Dolls & Gabbana. Of course, for those who want to spend time and money now, NFTs can be a fun way to test technology and potentially create some buzz. But the real potential for brands in the future NFT space is much wider and, obviously, exciting to consider.

The huge price to come is not towards the industry (which we now see mainly with industry-based collections) but for the benefit of the NFT. We are only realizing the very tip of the iceberg in terms of affordability from a marketing standpoint. Once the usefulness of NFTs begins to emerge — and I guess it will happen the most in the next three years যা all that will emerge is a whole new and powerful marketing channel and ecosystem that will surpass email and social media in its ability to attract. , Wonder and joy.

Imagine membership-type communities that allow NFT-owned customers multiple levels of connectivity, provide initial access to products, VIP presence at major events, real-time response surveys, and more. Importantly, under these circumstances, brands will have the ability to develop and manage first-party data from customers in an ever-changing privacy climate. Another great opportunity lies in decentralized autonomous organizations (DAOs), which today can shift the ownership of big brands from the familiar corporate structure to new joint, affordable and fair business models.

Conclusion

Of course, there are exceptions. For brands and SMBs whose listeners are initially receptive, now is probably the right time to jump on the NFT train. The same goes for companies that benefit from PR in order to emerge as an innovative brand.

But for the rest, now is the right time to pay attention to the old “patience is a virtue” proverb, to observe what others are doing right (and wrong), to be properly prepared and to set strategies. And when the upcoming NFT tipping point starts, they can jump straight to the big results on the express train.

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