The crypto asset market is bearish, the NFT market demand has dropped sharply, and the secondary market transaction volume has shrunk significantly. Dune Analytics data shows that in August, the Ethereum version NFT transaction volume on OpenSea was only 273,000 ETH, equivalent to $472 million. Compared with the peak of 1.604 million ETH (about $4.857 billion) in January this year, the transaction volume has shrunk. 90%.
The NFT market is cooling down, but traditional brands are accelerating their entry into NFTs.
On August 2, Gucci's official Twitter announced that some of its US stores will add a new payment method for encrypted assets - the native Token ApeCoin (APE) of the leading NFT project Bored Ape Yacht Club (BAYC). At that time, Gucci customers in the United States will be able to use APE to purchase items in stores by using the payment infrastructure provided by payment company BitPay. This is also the first luxury brand to publicly support an NFT project.
On August 1, Tiffany officially announced the launch of a new NFT project, NFTiff, for creating custom pendants and NFT digital artwork similar to final jewelry designs. NFTiff is generated based on CryptoPunk NFT. Tiffany's designers restored the NFT image of the Cryptopunks series on the chain with physical necklace pendants. This time, Tiffany's product that combines NFTs on the chain with entities has been very popular as soon as it is launched. 250 NFTiff NFTs were sold out on the day of the launch on August 5, and the issue price of each NFT was 30 ETH (about 54,000 US dollars). ).
In fact, since 2022, more and more traditional brands have actively embraced NFTs, and existing brands have gained good income from NFTs. According to statistics from kingjames23tong, a user of the Dune Analytics platform, NFTs of sports brand Nike have generated more than $185 million in revenue for the company. Among the traditional brands that issue NFT collections based on Ethereum, Nike has become the top seller of NFTs, followed by brands such as Tiffany, Gucci, and Adidas, which have earned $10 million to $20 million in revenue through NFT projects.
So, what are the forms of traditional brand layout NFT? How is it different from NFT projects native to the crypto market? How is the operation of NFT projects issued by traditional brands? This issue of Web3 Honeycomb will sort out one by one.
The number of wallet addresses is 1.247 million, and the average transaction price of NFT is $798.
Compared with the first quarter of this year, the performance of NFT-related data has declined, but the number of projects and the overall user activity have made a qualitative leap compared with the same period last year. With such a basic market, traditional consumer brands have begun to give up onlookers and deploy NFTs one after another.
For traditional commodities, NFT technology can be used to solve the problem of counterfeit and shoddy products. As a non-fungible token, NFT has the characteristics of scarcity and inseparability. It can allow some content or artworks to obtain digital ID cards with unique identification in the way of blockchain confirmation. Its creators can decide on their own. The number of releases of a work is numbered, and every link of circulation and transaction is completely recorded through the blockchain, and the data is open and transparent, which can not only protect the creator but also restrict the holder.
Therefore, NFT can be used as a digital identity certificate for any product in the real world, that is, "everything can be NFT" in theory. Since NFT is traceable, verifiable, non-tamperable, and non-forgery, it is the most favorable endorsement for the authenticity and uniqueness of the product. This is especially important for products that require traceability (such as luxury goods, high-end alcohol, etc.), which can not only prevent counterfeiting, but also better use its characteristics to authenticate the value of scarce commodities.
For example, in real life, luxury imitations are flooding the market, and consumers often look for professional appraisal agencies when identifying authenticity. If the information of these luxury goods is stored on the blockchain and made into NFT or corresponding NFT virtual products on the chain, then consumers can view the public on-chain information (including the raw materials of the product, production place, production quantity, etc.) ) to distinguish the authenticity.
For brands, NFT, as a new favorite of encrypted users and the younger generation, has its own traffic.
On the one hand, brands can conduct marketing through NFT, digitally develop their own IP, make NFT a bridge between brands and users, and use NFT as a medium to build more scenarios and bring new product experience.
On the other hand, the inherent scarcity of NFTs can even enhance the value of a brand or product, because scarcity itself brings a premium for commodities. Taking luxury goods as an example, its limited products are often sought after by consumers. After the introduction of NFT products, it can break the homogeneous competition of mass-produced products, match consumer preferences from multiple dimensions, realize customization, and further increase scarcity.
In addition, NFT is becoming an important digital asset in the metaverse space, and brands can use NFT as a link to lead users to lay out their own metaverse world.
For users, NFT brings the possibility for users to participate in brand building, allowing users to change from the previous role of consumers to the role of builders who develop together with the brand. For example, the holders of Stickman NFT mfers, in order to increase the popularity of the NFT project, they made offline peripheral products at their own expense, and even advertised it.
What are the ways for traditional brands to enter NFT?
The expectations and development routes of crypto-native NFT projects and traditional brand layout NFTs are diametrically opposed. The former hopes to link products in the virtual world on the chain to offline application scenarios, while the latter hopes that NFTs can become the entrance to the virtual world on the chain.
The starting point of the encrypted native NFT project is issued by the creator, the development route is driven by community users, and the on-chain and offline worlds develop together. It is hoped that based on the NFT IP on the chain, it can be extended to the offline physical world, giving more real usage scenarios . This is a bottom-up development process from fiction to reality. For example, the NFT project BAYC has been made into offline clothing, skateboards, shoes and other peripheral products, and the stickman mfer has offline cafes.
The traditional brand issuing NFT hopes to use it to enter the Web3 or metaverse world, build more online virtual space based on the brand IP in the real world, and let the brand IP have a place in the chain world, and its development route is guided by the brand side . This is a top-down development process from the real to the virtual. For example, the beauty brand Estee Lauder released a small brown bottle NFT (Advanced Night Repair) during the Metaverse Decentraland Fashion Week event. The user's virtual avatar of the metaverse can enter the small brown bottle to obtain a wearable NFT. The brown bottle gives a bright and bright face, bringing a new experience of the Metaverse to users.
At present, many traditional brands have been deployed in the NFT market and have achieved considerable benefits. Most of these brands are consumer brands, and the NFT projects launched are not only in cooperation with the native NFT in the encryption market, but also produced by the brand itself. According to the latest data from Dune Analytics, among all brands that issue NFTs based on Ethereum, Nike ranks first with a total revenue of $185 million.
Brand NFT revenue statistics from DuneAnalytics
For brand enterprises, embracing NFT is not only a product in the form of NFT, but also a systematic project. Based on the unique attributes of NFTs, enterprises can create a series of new interactive scenarios that could not be achieved before, which can be consumption scenarios, social scenarios or game scenarios. These scenarios can be built by themselves, or they can rely on external cooperation. In addition to focusing on the gameplay and value of NFT as a digital asset, brands pay more attention to how to activate a new brand marketing system and user ecology through NFT.
At the same time, NFTs will also open up new development channels for brands: based on the underlying technology of blockchain, all NFTs and related transactions can be opened across platforms and interact across scenarios, and NFTs issued by brands will not be restricted to a specific underlying technology. middle.
From fiction to reality: Obtain NFT IP authorization to make physical goods
Domestic tide brand China Li Ning buys the boring ape #4102 making peripherals
In April of this year, the domestic trendy brand China Li Ning won the Boring Ape BAYC #4102, and then launched the "China Li Ning Boring Ape Trend Sports Club" series of clothing, which was designed with the image of #4102 Boring Ape as the theme, combining the Li Ning brand with the boring ape. Combining the elements of ape, it launched clothes and shoes offline, and also held a trendy pop-up event of "boring is not boring". #4102 Boring Ape became the manager of Li Ning's pop-up store.
Jeweler Tiffany&Co Makes the CryptoPunk Pendant
On August 5th, Tiffany&Co launched the first set of NFT works "NFTiffs". This series of NFTs is limited to 250 pieces, each priced at 30ETH, and the current market price is about 55,000 US dollars. The NFTiff series of NFTs are generated based on the cryptopunk CryptoPunkNFT. Tiffany's designers restored the image of the cryptopunk NFT on the chain with a physical necklace pendant.
More than just digital artwork, NFTiffs are CryptoPunk's 3D designs and redeemable passes that can be used to claim custom Tiffany&Co physical pendants and standard necklaces. After the user purchases the NFTiff, it will link to the CryptoPunk represented by the NFT, and grant Tiffany's design and production rights, and the user will receive a physical necklace offline based on the NFT image they hold.
From Real to Virtual: Expanding the Metaverse Layout with NFT
Nike plays three steps around NFT
Sports brand Nike's early layout of NFT mainly revolves around virtual shoes.
In 2019, Nike launched the first virtual sneaker NFT "CryptoKicks". Each pair of virtual sneakers is an NFT, and its color, style and other attributes are recorded on the chain, and the ownership is transferred with the transfer of the NFT. CryptoKicks later added gameplay, and the various designs of sneakers can continue to evolve. Drawing on the gameplay of the first-generation blockchain game representative "CryptoKitties", the sneakers can be paired to generate new sneaker offspring. The difference is that Nike will This kind of gameplay is derived offline. As long as the manufacturer can produce it, the offspring of these sneakers can be produced as a pair of customized physical sneakers.
In December 2021, Nike announced the acquisition of RTFKT, a virtual sneaker collection platform. At that time, it was during the hot period of NFT, and the concept of the metaverse was ready to go. Before the acquisition, RTFKT had launched the 3D character avatar NFT series CloneX, which became a blue-chip project in the NFT market.
CloneX is designed for the interactivity of the metaverse world, as it utilizes 3D modeling technology, trying to combine NFTs with AR devices. RTFKT later planned to develop virtual costumes, trying to make CloneX's NFT characters wear shoes and hats in the metaverse world. The company's development and planning routes are all heading towards the Metaverse, and Nike's acquisition of it has undoubtedly paved the way for its entry into the Metaverse.
In February this year, Nike and RTFKT jointly released the first Ethereum-based virtual sneaker NFT series RTFKT*Nike Dunk Genesis CryptoKicks (hereinafter referred to as RTFKT*NDGC), which is mainly used for virtual human wearable devices in the metaverse world. The total amount of RTFKT*NDGC issued is 20,000, and the initial selling price averaged 3 ETH. Today, its floor price in OpenSea is 0.54 ETH, which is about $864.
Adidas Releases NFT as Metaverse Pass
When Adidas lays out NFTs, the goal is more precise - hitting the metaverse directly.
In December 2021, Adidas purchased #8774 Boring Ape for 46 ETH (~$156,000), turning this NFT into a metaverse character named Indigo Herz.
Metaverse image
In the same month, Adidas released the "Into the Metaverse" series of NFTs, with a total of 30,000 pieces. The NFT series used Indigo Herz as the character image and prepared different costumes for them.
Issuing NFT is not the ultimate goal of Adidas, but building a metaverse brand space. In the core position of The Sandbox in the metaverse space, Adidas has a piece of "Land". In the future, users who hold NFTs can be used as free passes to enter the virtual space, and virtual avatars can wear related virtual clothing equipment in The Sandbox. Buyers of this NFT collection from Adidas not only have access to an exclusive fan club, but also receive physical clothing from these NFTs.
Coca-Cola transforms core elements into NFTs
In July, Coca-Cola partnered with 3D avatar app platform Tafi to launch a series of NFTs in celebration of The International FriendshipDay, including Coca-Cola® Pride Collectibles, Coca-Cola® Hamburger Day and Coca-Cola ® International Friendship Day digital collectibles, these NFTs feature the iconic Coca-Cola bottle.
Loot Box (Coca-Cola Friendship Box) NFT, players can use in Metaverse Decentraland, the box includes the classic Coca-Cola retro refrigerator, a red Coca-Cola delivery uniform (wearable in Decentraland), a friendship card (modeled after 1940) A Coca-Cola game card design from the 1990s) and a sound visualizer that plays the sound of a bottle opening, a drink being poured over ice, and the bubbly sounds commonly found in carbonated beverages. Coca-Cola says each NFT in the Friendship Box honors core elements of the Coca-Cola brand, but they interpret them in a new way in the virtual world.
Budweiser NFTs canned elements
In 2021, Budweiser released a heritage version of the NFT "Budverse Cans Heritage Edition" with the theme of branded beer cans. A total of 1936 pieces were issued. The number 1936 represents the year when Budweiser first launched canned beer, which is also the first edition of Budweiser. The year in which the LOGO was released, these NFTs document Budweiser's historic moments, design photos and the development of canned beer.
BudverseCans Heritage Edition exterior
In addition, these NFTs will become the pass for consumers to participate in the Budweiser metaverse "Budverse" in the future, unlocking the exclusive benefits and surprise rewards of Budweiser for the holders.
In January of this year, BudLight NEXT, a zero-carb brand under Budweiser, launched an NFT called "Bud Light N3XT Collection". Each NFT appearance combines the brand background and icons representing beer culture, and the number of releases is 12,722. After purchasing the NFT, consumers will have the opportunity to vote on Bud Light NEXT products, visit the Bud Light NEXT brand, participate in partner activities, and more.
Integration of virtual and real: NFT corresponds to the simultaneous sale of physical goods
Luxury brand Gucci dives deep into the crypto sector
Gucci's layout in the encryption sector not only includes support for APE as a payment method, but also the launch of NFT products.
In 2021, Gucci will launch NFT collections called "SUPERGUCCI" and "10KTF Gucci Grail", as well as the Metaverse Store "Gucci Vault" series of NFTs.
"SUPERGUCCI" is an NFT project launched by Gucci and digital collectible art design company Superplastic. Each NFT design is based on Gucci's classic totems, and is displayed through Superplastic's virtual Internet celebrities Janky & Guggimon as the protagonists. The number of Janky and Guggimon series is 500, and each NFT will be accompanied by an 8-inch white SUPERGUCCISuperJanky pure handmade ceramic doll solid sculpture, which is made by Italian ceramic artists.
