How Brands are Using NFTs

Technology has been advancing at warp speed in the past few years.

One area that has been enjoying some of the most rapid advancements is blockchain.

That doesn’t mean solely cryptocurrencies like Bitcoin, Ethereum, and the slew of other cryptos being peddled on the crypto market.

Let’s look at non-fungible tokens (NFTs) and how brands can use NFTs in their marketing campaigns.

What Are NFTs?

While they’ve been around for a couple of years, NFTs have recently become a hot topic (and even hotter investment).

What are they, and how do they work?

To understand non-fungible tokens (NFTs), we must first define the word “fungible.”

If something is fungible, it can be exchanged for something of equal or similar value. A typical example would be fiat currency (and even cryptocurrency). It’s fungible because you can trade it for goods of an equal value. You can also trade it for another currency if need be.

On the other hand, something that’s non-fungible is unique and therefore can’t be exchanged at equivalency. For example, a diamond is non-fungible as no two diamonds in the world are alike, and thus each has its unique value. You can’t trade one for another at equivalency.

A non-fungible token is a cryptographic asset created using blockchain technology.

What sets NFTs apart from cryptocurrencies (which are fungible tokens as they are identical to each other) is that they have unique identification codes and metadata to distinguish one NFT from another.

Because each NFT is unique, it cannot be traded or exchanged at equivalency with another NFT. The result is that each NFT is a digital collectible, a one-of-a-kind asset that can’t be replicated.

That’s where the craze for NFTs started. In 2017, CryptoKitties, a blend between Tamagotchi and trading cards, exploded onto the scene. Each kitten is unique and can be raised, reproduced, be traded— some for as much as $140,000.

NFT mania was born, and today, the interest in NFTs is only increasing.

Why Are Non-Fungible Tokens (NFTs) Important to Brands?

One of the main reasons NFTs are important to brands is that they can be used to represent digital files, such as art, audio, and video. They are so versatile, they can be used to represent other forms of creative work like virtual real estate, virtual worlds, fashion, and much more.

What does this have to with your brand and marketing strategy?

Thanks to the global interest they’ve generated, NFTs have opened up new ways of brand storytelling and consumer interaction, which, as you know, are the two main pillars of an effective marketing strategy.

With NFTs, you can: