NFTs and Big Brands: Exploring new possibilities

NFTs and Big Brands: Exploring new possibilities

The surge in popularity of NFTs, which are unique digital tokens that cannot be replicated, has recently captured the attention of notable corporations. Big names such as Marvel (a subsidiary of Disney), Coca-Cola, Gucci, Pizza Hut, KFC, Taco Bell, Lamborghini, and Hot Wheels (which is owned by Mattel) have joined the frenzy by delving into novel ways of integrating NFTs into their advertising schemes. Consequently, there has been a surge of fervor and anticipation amongst the masses, with many enthusiasts itching to partake in this latest trend.

The value that the big brands bring to the table is tremendous, and this is the same topic that I presented at NFT NYC in April 2023- “Think Bigger In The Next NFT Summer”. The big brand will take the lead. They are utilizing the distinctive properties of NFTs to enhance customer interactions and experiences, boost brand recognition, stimulate purchases, and promote diverse campaigns.

They generate and vend NFTs, providing patrons with exclusive and distinctive digital items like virtual collectibles, artwork, and experiences. These NFTs are singular and unrepeatable, thus giving them a high intrinsic value that’s coveted by consumers. I will walk you through some examples.

Starbucks

Starbucks has entered the cryptocurrency world with a new rewards program named Starbucks Odyssey, developed using the Ethereum scaling network Polygon. This program offers customers an exciting opportunity to acquire and earn collectible non-fungible token (NFT) stamps that can be used for various purposes. Starbucks chose Polygon over other blockchains because of its “proof-of-stake” blockchain technology, which consumes less energy than first-generation “proof-of-work” blockchains.

The demand for Starbucks Odyssey has been unprecedented and garnered an overwhelming response from the initial beta testers. Since Starbucks Odyssey’s beta launch in December 2022, its stamp NFTs have garnered a remarkable 360 total sales, amassing over $143,000 in total sales on the official secondary marketplace of Nifty Gateway. Starbucks has partnered with Polygon to evaluate Web3’s potential in influencing brand loyalty, and the results are eagerly awaited.

Gucci

Gucci has entered the world of non-fungible tokens (NFTs) with its first offering, “Aria.” This NFT is a four-minute video clip inspired by Gucci’s recent Aria collection and features the creative director Alessandro Michele’s runway presentation. The video showcases a surreal, post-COVID clubbing experience, which makes it a unique and exciting piece. The NFT was auctioned at Christie’s as part of a sale titled “PROOF OF SOVEREIGNTY: A Curated NFT Sale,” with all proceeds donated to UNICEF USA to support UNICEF’s role in COVAX. Gucci also collaborated with SuperRare to create an NFT marketplace called Vault Art Space, which features collectible fragments of the brand’s heritage.

Additionally, Gucci collaborated with Superplastic to create a limited series of NFTs called “SUPERGUCCI,” which Alessandro Michele and synthetic artists Janky & Guggimon co-created. The first drop incorporates House codes found in the Gucci Aria collection, while the second drop spotlights Guggimon embellished with the Gucci Love Parade. These collaborations showcase Gucci’s dedication to the world of NFTs and its commitment to exploring new possibilities in the digital space.

Porsche

Porsche has been exploring the world of non-fungible tokens (NFTs) since 2021. This journey began with an auction in August 2021, where a design sketch by chief exterior designer Peter Varga was sold as an NFT for a significant amount. Recently, Porsche introduced a collection of 7,500 NFTs, allowing owners to co-create their digital artwork.

The NFT collection features a white Porsche 911 Carrera with a personalized license plate that can be customized to reflect the owner’s personality. Porsche’s foray into NFTs aligns with its commitment to co-creation and community as it seeks to merge the physical and digital worlds. Porsche continues to explore the potential of NFTs and their role in creating unique and innovative customer experiences.

Red Bull Racing

Red Bull Racing has vigorously explored the vast possibilities of non-fungible tokens (NFTs) and blockchain technology. Through strategic partnerships with notable companies such as Oracle, Bybit, and Azuki, the team has rolled out an impressive array of limited-edition NFT collections. One of the most recent and sensational NFT collections released by Red Bull Racing is the Lei the Lightning Azuki, featuring a vivacious young racer in the Azuki universe with an unwavering aspiration to become an F1 driver. The NFT is conveniently available through Bybit’s NFT marketplace.

Adding more spice to their collection, the team has also released a bunch of limited edition NFTs of the RB16B, the iconic 2021 F1 car driven by the incredible Sergio “Checo” Perez, decorated with his signature livery. In addition to releasing NFT collections, Red Bull Racing has creatively pioneered NFT auctions during F1 race weekends.

One such auction was held during the electrifying Monaco Grand Prix weekend, where the highest bidder received a remarkable digital version of a one-of-a-kind Playseat simulator rig, alongside the rights to claim a physical version of the rig. This groundbreaking move has created a buzz and is the first time a blue-chip NFT finds its way onto an F1 race car.

The active involvement of these big brands in the fascinating world of NFTs is undoubtedly a sight to behold.

 Big Brands Working with Generative Artists

The narrative of big brands giving away a PFP (Profile Picture NFT) was a craze last year. Then twin NFT, which represents a digital twin, or virtual replica, of a physical object, helps to connect the Web2 folks to Web3 is a widely used concept. I even got my digital twin NFT.NYC tickets. But increasing, I see that big brands are working with generative artists to create centerpieces for their storefronts, wrapping paper to new product lines.

Generative art is a fascinating field that has recently captured the attention of prominent brands. Many companies are exploring how generative art can be used to create unique and imaginative experiences for their customers. Here are some examples of generative artists collaborating with big brands:

Adidas has collaborated with generative artist Joshua Davis to create a unique line of sneakers. Davis used code to create an algorithm that generated millions of different shoe design options. The resulting designs were then printed on the sneakers using a digital printing process. This collaboration demonstrates how generative art can be used to create personalized and customized products for customers.

Generative artist Refik Anadol has worked with major tech companies like Google and Microsoft to create immersive installations that use AI and machine learning to analyze and interpret large data sets. Anadol’s work explores the intersection of technology and art. His collaborations with big brands demonstrate how generative art can create cutting-edge experiences that push the boundaries of creativity and innovation.

Generative artist Rafael Lozano-Hemmer has worked with brands like BMW and Samsung to create interactive installations that engage audiences and promote brand awareness. His work often uses technology and data to create unique experiences that blur the line between art and advertising. Lozano-Hemmer’s collaborations with big brands demonstrate how generative art can create memorable and impactful experiences that connect with audiences in new and innovative ways.

A leading international gallery, Pace hosted an exhibition, QQL: Analogs, featuring generative artist Tyler Hobbs’ innovative works. This groundbreaking exhibition showcased 12 large-scale paintings based on Hobbs’ QQL algorithm. Visitors immersed themselves in the creative fusion of technology and art as the paintings were crafted using traditional techniques and robotic tools. Coinciding with the physical exhibition, for the very first time, Pace presented a metaverse gallery in collaboration with AOI.

This unique event highlighted the importance of generative art and the convergence of the digital and physical art worlds. I spoke to Tyler Hobbs, who said, “How can you work more humanly with the computer and the machine? And when you work by hand, take a more mechanical approach to work procedurally?” This statement got me thinking. Perhaps this is a new way and approach to looking at digital art. This is a very forward-thinking statement to many, and I believe it sets the right tone moving forward.

These examples demonstrate how generative artists collaborate with big brands to create imaginative experiences that engage audiences and promote brand awareness. By incorporating generative art into their designs, companies can create personalized and customized products, transform retail spaces into dynamic environments, and create immersive installations that push the boundaries of creativity and innovation.

Benefits of NFTs for Big Brands

The use of NFTs by big brands has been increasing in popularity to enhance their customer interactions. NFTs allow brands to create unique digital assets, which can be used to offer exclusive experiences or access to products or events. This can create a stronger bond between the brand and its customers, increasing brand loyalty.

It is also an effective way of increasing brand awareness. By creating limited edition or unique digital assets, brands can create exclusivity, generating buzz and excitement amongst customers. This can lead to increased engagement with the brand, as customers are more likely to want to interact with and purchase the NFTs before they run out.

One of the main benefits of using NFTs is the ability to promote marketing campaigns more engagingly. By creating interactive experiences through NFTs, brands can allow customers to participate in campaigns in a more immersive way. This can increase sales, as customers are more likely to purchase when they feel part of a campaign.

Some brands are using NFTs to offer collectible items for sale. These can be anything from designer eyewear to fast-food dishes. By creating unique and valuable digital collectibles, brands can provide customers with a new type of product, which can create a new revenue stream for the brand. Customers can also own a unique and valuable digital asset associated with the brand, enhancing their perception of the brand and increasing loyalty.

Potential Long-Term Value of NFT

Some consumer groups complain that big brands are trying to pull a fast cash grab on their fans. I do not think that the big brands are merely looking just using NFTs to make quick sales. They also realize the potential long-term value of these unique digital tokens, which is reflected in their stock prices and overall worth. These companies are embracing NFTs and exploring fresh ways to harness their one-of-a-kind properties, enabling them to position themselves for future growth and success.

These brands are gaining an edge in the cut-throat marketplace by taking a forward-thinking approach. They understand NFTs can create novel revenue streams, cultivate brand loyalty, and spur innovation. This proactive attitude toward emerging technologies draws investors who perceive the potential for future value creation.

The adoption of NFTs by big brands is not only profitable for the companies themselves but also for their shareholders. By investing in these visionary companies, shareholders can reap the benefits of future growth and success. NFTs are a strategic asset for these big brands as they leverage this innovative technology to create fresh growth and value-creation opportunities.

Summing Up

The emergence of big brands into the NFT arena has caused a stir in the market, and rightly so. It hints at the growing acceptance and recognition of NFTs as a lucrative tool for generating new revenue streams. This infusion of capital from big players in the industry is likely to spur the development of more creative and original NFT offerings, leading to increased brand engagement and community involvement.

Although there are still a few bumps to iron out, such as integrating sales models in virtual worlds, the market is anticipated to become more sophisticated. Metaverse could be the bridge to what we expect.

Like my friend AOI would say:

“It’s time we bring technology to the arts in a meaningful and immersive way. The metaverse should enhance the digital art experience.” As these obstacles are gradually resolved, it will become more straightforward to create and sell NFTs seamlessly and efficiently.

Another element that could contribute to the growth of the NFT market is the projected bull run in the crypto industry. During these periods of high market activity, cryptocurrencies, and blockchain technology tend to pique the interest and attention of investors. Consequently, it is highly plausible that the NFT market will experience substantial growth during the next bull run, attracting even more investment and attention from big brands and individuals alike.

In conclusion, the entrance of big brands into the NFT arena is a positive sign for the market, indicating increasing adoption and mainstream acceptance. As the market matures and gains more traction, we can look forward to more ingenious use cases and innovative applications of NFTs, leading to a more dynamic and vibrant ecosystem.

Ending off with the usual Anndy Lian quote:

“Your new asset is in the digital world. NFT is the new asset.”

 

 

 

Source: https://cryptoslate.com/nfts-and-big-brands-exploring-new-possibilities/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Anndy Lian’s Keynote Speech at TMRW Conference Dubai: Web4, A New Way to Decentralise

Anndy Lian’s Keynote Speech at TMRW Conference Dubai: Web4, A New Way to Decentralise

Decentralised cryptocurrency, a digital currency that operates independently of a central bank or authority, is a concept that has revolutionized the financial world. Transactions are recorded on a public digital ledger, such as a blockchain, and verified by a network of users rather than a single centralized institution. This innovative and decentralised structure allows for increased transparency, security, and autonomy in financial transactions.

But decentralisation is not limited to just cryptocurrency. When we talk about decentralisation, the term web3 often comes up. Web3, also known as the decentralised web or “Web3.0,” is a visionary concept for the future of the internet in which power and control are distributed among users rather than concentrated in a small group of companies or organizations.

The central concept of web3 is decentralisation, which aims to allow users to control their own data and identity, as well as giving them more control over the apps and services they use. It is also thought to have the potential to create new business models and economic opportunities.

Jack Dorsey, co-founder and former CEO of Twitter, Inc., mentioned that web3 is not necessarily decentralised, and I completely agree with his comments. The reality is that the concept of decentralisation is complex and nuanced, and we must continue to explore its potential and limitations in the context of the evolving digital landscape.

We need something more decentralised. My suggestion to this is “Web4”. Web4, or what some refer to as the second generation of the decentralized web, envisions a future internet where power and control are spread across users instead of a select few companies or organizations. Rather than relying on centralized servers and data storage, web4 would utilize cutting-edge decentralized technologies such as blockchain and peer-to-peer networks to create an internet that’s more transparent, secure, and open. With this, users can enjoy greater data privacy, censorship resistance, and ownership of digital assets.

At the heart of web4 is decentralization, which empowers users to manage their data and identity while providing more control over their apps and services. The potential for web4 goes beyond mere convenience and opens doors to new business models and economic opportunities. Furthermore, web4 is intertwined with the burgeoning field of AI, which can complement its decentralized nature in various ways. Think decentralized AI, Federated Learning, Privacy-Preserving AI, Blockchain-based AI, and AI-driven scalability. The possibilities are endless!

Artificial intelligence (AI) could potentially play a crucial role in realizing this vision. Here are some tantalizing possibilities of how Web4 and AI could interact: First up, decentralized AI. Web4 aims to decentralize control on the internet, and that could be applied to AI as well. Decentralized AI systems would enable more distributed decision-making and prevent a single entity from having too much power over AI systems. Talk about leveling the playing field!

Then there’s Federated Learning. Web4 is all about making different technologies and platforms work together seamlessly. Federated learning, a technique where multiple devices, like smartphones, work together to train a shared AI model, could be a perfect fit for Web4. Who knew that smartphones could be such a powerful force for good?

And let’s not forget about Privacy-Preserving AI. Web4 is all about providing users with increased security and privacy. Privacy-preserving AI, which protects users’ data privacy while still allowing for useful AI models to be trained, is the perfect solution to achieve this goal.

Last but not least, we have AI-driven scalability. Web4 aims to handle more data and users by using blockchain technology and sharding concepts, which allows for faster processing of transactions. Deep learning techniques can also be used to optimize the scalability of the network. It’s all about being able to handle more, faster.

As you can see, the potential for Web4 and AI to work together is truly mind-boggling. We can’t wait to see what the future holds!

“I believe in decentralisation. Web4 could be the next big movement.” – Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Hong Kong’s New Crypto Licensing Regime: A Boon or Bane for Investors?

Hong Kong’s New Crypto Licensing Regime: A Boon or Bane for Investors?
  • The new regulations are expected to attract more foreign investment into Hong Kong.

  • Analysts remain unsure of how China will treat Hong Kong’s new crypto regime.

The new crypto regulations in Hong Kong have been a topic of discussion among investors and industry players alike. The announcement of the new licensing regime has brought hope for many who believe that it will make Hong Kong a major player in the crypto market. However, some remain cautious and have raised concerns about the potential risks that come with such a move. In this article, we will explore the opportunities and risks associated with the new Hong Kong crypto regulations, compare them with Singapore and South Korea, and discuss whether China is likely to back out.

New crypto exchanges

The new Hong Kong crypto regulations present several opportunities for the industry. Firstly, the licensing regime allows for the creation of new crypto exchanges, which will attract more investors and create more jobs. For example, a new exchange called Huobi Hong Kong is set to focus on institutional investors and high-net-worth individuals. This is good news for the industry as institutional investors are known to bring stability and liquidity to the market.

Secondly, the new regulations are expected to attract more foreign investment into Hong Kong. Hong Kong’s strong determination to regain the title of global crypto center is reflected in a series of policies and statements issued by the Hong Kong Monetary Authority. This is expected to create a favorable business environment that will attract foreign investors and companies to Hong Kong. This will benefit not only the crypto industry but also the overall economy of Hong Kong.

Thirdly, the new regulations are expected to enhance transparency and reduce the risk of money laundering and fraud. The Hong Kong Securities and Futures Commission has taken a regulatory approach to cryptocurrencies, which contrasts with recent actions in the US of regulation by enforcement. This approach will help build trust among investors and promote long-term growth in the industry.

However, while the new Hong Kong crypto regulations present several opportunities, they also come with risks. One of the biggest risks is the potential for increased market volatility. The crypto market is notoriously volatile, and the creation of new exchanges and the influx of more investors may exacerbate this. Moreover, there is the possibility of fraud and manipulation, which can further increase volatility and undermine investor confidence.

Lack of competition

Although the new Hong Kong crypto regulations present several opportunities, they also come with some risks. One of the biggest risks is the potential for increased market volatility. The crypto market is notoriously volatile, and the creation of new exchanges and the influx of more investors may exacerbate this. Moreover, there is the possibility of fraud and manipulation, which can further increase volatility and undermine investor confidence.

The new regulation may lead to a concentration of power in the hands of a few large exchanges. This can lead to a lack of competition, which can result in higher fees and a decrease in innovation. This is a problem that has been observed in other industries, such as banking and telecommunications, where a lack of competition has resulted in poorer service and higher prices.

Lastly, there is the risk of government interference. While the Hong Kong government has been supportive of the new regulations, there is always the possibility that it may change its stance. This could lead to a situation where the government restricts or bans crypto trading altogether. This would have a devastating impact on the industry and its investors.

Singapore as a major player

Hong Kong is not the only country in the region that is looking to regulate the crypto industry. Singapore and South Korea have also taken steps to regulate the industry. Singapore has been proactive in its approach, establishing a regulatory framework that encourages innovation while protecting investors. This has made Singapore a major player in the crypto market, with several major exchanges based in the country.

South Korea, on the other hand, has taken a more cautious approach. In 2017, the government banned initial coin offerings (ICOs), citing concerns about fraud and money laundering. However, the ban was lifted in 2018, and the government has since established a regulatory framework that requires exchanges to register with the Financial Services Commission. While this has led to a decrease in the number of exchanges in the country, it has improved investor protection and reduced the risk of fraud.

Compared to Singapore and South Korea, Hong Kong’s new crypto regulation is more similar to Singapore’s approach. Both countries have taken a proactive approach to regulation, with a focus on promoting innovation while protecting investors. However, Hong Kong’s new licensing regime is more focused on institutional investors, while Singapore’s regulatory framework is designed to cater to a broader range of investors.

Possible Backlash from China

Finally, there is the question of whether China is likely to back out of the new Hong Kong crypto regulation. China has been cracking down on the crypto industry, with a ban on ICOs and cryptocurrency exchanges in 2017. However, there are indications that China may be softening its stance. In 2019, President Xi Jinping stated that China should accelerate the development of blockchain technology. Moreover, in 2021, several Chinese companies announced plans to enter the crypto industry.

Despite these positive signs, there is still a risk that China may object to the new Hong Kong crypto regulations. China sees Hong Kong as part of its territory and may view the new regulations as a challenge to its authority. If this happens, it could lead to a deterioration of relations between Hong Kong and China, which would have far-reaching consequences for the industry and its investors.

Concentration of power

In conclusion, the new Hong Kong crypto regulations present both opportunities and risks. While they are expected to attract more investors and create a favorable business environment, there is also the potential for increased market volatility, concentration of power, and government interference. Compared to Singapore and South Korea, Hong Kong’s approach is more focused on institutional investors but shares a similar emphasis on promoting innovation and protecting investors. Whether China will back out of the new regulations remains to be seen, but there is a risk that it may object, leading to a deterioration of relations between Hong Kong and China.

Note: For new investors, be reminded that the crypto market is volatile. Please do your own proper research and do not get carried away by the hype. Today you can 10X, and tomorrow you may lose everything.

Source: https://www.financemagnates.com/cryptocurrency/hong-kongs-new-crypto-licensing-regime-a-boon-or-bane-for-investors/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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