At least once or twice a week, we have been filling you in on a brand releasing NFTs or virtual “Metaverse” happenings. More and more big brands are taking advantage of crypto and NFT trends, typically as a retail channel. We’ve been seeing the same structure happening, and while some strike it big, some fall flat.
Here are a few things companies need to know to avoid common mistakes of NFTs:
- How an NFT looks doesn’t matter too much: The artistry of the art is not what makes an NFT valuable. Instead, designing an NFT project should center around things like scarcity, innovation, and community. Many brands mistake that for just creating something quirky or really specific.
- So what is a community in regards to NFTs?: Communities aren’t about companies, they are about ideas. NFT’s are sort of like a club membership (or sometimes an inside joke) that act as social currency to a community. The big mistake companies make is not establishing a community before releasing NFTs.
- Early buy-ins have higher value: While many brands are rushing in blindly to NFTs and the metaverse. Metaverse-native brands are currently more valuable than existing corporate brands in this new arena. It’s supporting that idea of building community before launch, because “real-world” brand recognition does not always translate virtually.
- NFT projects should change over time: The best NFT projects are constantly evolving and owners should be listening to their community for more changes.
- Not every brand and product should have NFTs: But it seems every brands thinks they should. But most products should never have an NFT. Many brands are also rushing their NFTs. Yes, the market is saturating quickly, but innovative projects take time!
Check out CoinDesk’s full article for specific brand examples and more details about doing NFTs the right way.
