NFTs are worthless — and that’s great for brands

If your Twitter feed isn’t overflowing with jokes about the demise of NFTs, then you probably haven’t checked in over the last month. 

The NFT market has taken a nosedive in both value and activity. While no one feels sorry for someone with a worthless jpeg, does that mean the space is dead for brands? That the metaverse and Web3 were just bubble ‘shills’ with no long-term purpose or viability? 

Absolutely not.

In fact, the significant decline in financial speculation around NFTs and the metaverse, while painful for some, is a net positive for brands. It shifts the focus from the distraction of ‘get rich quick’ thinking to the real value and innovation that blockchain technology brings to marketing.

Let’s consider the potential of blockchain and why it will become fundamental to brands. NFTs by their very definition mean that every token is distinct, delivering uniqueness and scarcity on an unprecedented scale. This utility enables the most broad based brands to de-commoditize. In the Metaverse, my soda or toothpaste can be uniquely mine, delivering the potential of ‘one-to-one’ marketing while creating a collectability only previously available to luxury and traditionally ‘rare’ products and brands.

A second powerful property of NFTs is their ability to build community. Just as a rare sneaker enables the owner to uniquely stand out from the crowd, it also acts as a badge of membership to a community of like-minded people. NFTs behave the same way, signifying both individuality and community belonging. This creates unlimited potential for loyalty and rewards for brands. Together with new media such as Discord, the community power of NFTs promises deeper engagement between consumers and brands.