At Benzinga's recent Future of Digital Assets event, Alex Salnikov, co-founder and chief strategy officer of Rarible, participated in a panel discussion led by Ian Horn, head of content at Money20/20 Amsterdam. I participated.
The conversation focused on the challenges and opportunities of integrating non-fungible tokens (NFTs) into brand loyalty strategies within the expanding Web3 ecosystem.
Learn from past assignments
Reflecting on the challenges of the NFT market, Salnikov noted how speculative practices in 2021 have created skepticism about the technology.
“NFT is a dirty word in many communities these days,” he admitted. He explained that the market was rife with short-term profit schemes that fueled bubbles. Salnikov compared the situation to the recent craze surrounding meme coins, predicting that similar patterns may generate short-term interest but could lead to long-term challenges for the industry.
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This background provided a foundation for exploring how NFTs can be leveraged more effectively and responsibly to foster brand trust and consumer loyalty.
NFTs as a tool for engagement
Salnikov outlined how NFTs can transform customer engagement by making consumers stakeholders in a brand's success. He cited examples like Pudgy Penguins, which allows token holders to benefit from a brand's revenue streams. “If I own a stocky penguin, I expect the price to go up because the value is going to come back into it,” Salnikov said.
However, this model is not without its problems. Traditional brands are often hesitant to share revenue with NFT holders due to regulatory and structural constraints. Salnikov emphasized the importance of adapting the strategy to align with Web3's values, such as transparency and community involvement.
Web3 success story
The panel focused on brands that have successfully navigated these challenges. Salnikov cited Nike's acquisition of Web3 native brand RTFKT as an example of how traditional companies can grow in this space by partnering with established Web3 entities. In contrast, he said efforts like Louis Vuitton's high-priced NFT campaign focus too much on physical products and fail to build meaningful connections with crypto-savvy audiences. criticized as.
“Cryptoculture is virtual,” Salnikov said, stressing the importance of focusing on digital assets and fostering true community engagement.
Roadmap for the future
For brands entering the NFT space, Salnikov recommended a gradual approach that prioritizes experimentation and education. He encouraged companies to onboard users with wallets and digital collectibles, taking time to build trust and familiarity with the technology. “They need to start somewhere by experimenting and onboarding employees,” he advised.
As the Web3 landscape continues to evolve, the lessons shared on the panel provide valuable insight into how brands can better integrate NFTs into their strategies. By focusing on community building and long-term value, companies can navigate the challenges of the NFT space while fostering trust and loyalty among their audiences.
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