The Crossroads Of Brand NFT, Metaverse To The Left, Web 3.0 To The Right

In the three years of the global epidemic, in stark contrast to the impact on the real economy, the virtual economy has exploded.

2021 can be described as the first year of NFT (digital collection). In foreign countries, in addition to several eye-catching top-streaming projects, such as Twitter founder Jack Dorsey’s first tweet NFT, American digital artist Beeple’s NFT work “EVERYDAYS: THE FIRST 5000 DAYS”, McLaren, Coca-cola, Well-known brands such as LV have also launched NFT projects with high profile this year.

Overview

In China, under the leadership of major Internet companies such as Ali and Tencent, the exploration of the digital collection market using RMB for compliant transactions has also begun to take shape. As of the end of 2021, more than a hundred domestic digital collection markets that support RMB transactions have emerged, and thousands of them have developed so far.

Regardless of whether it is a large manufacturer or a brand, behind the layout of NFT, the most important thing is to link each end user through this decentralized node established on the blockchain, each with its individuality marked by NFT-distinguished users.

Whether it is extending brand increments in the virtual world or revitalizing old brands and injecting new vitality, interaction is the core. This interaction is a decentralized interaction, including direct interactions between users and between users and brands, as well as linkage interactions between different brands and users. And these interactions require the carrying of scenarios and applications.

For users, in addition to the collection value of NFT itself, there is always a soul torture of “what can the NFT I own bring me.”

The intersection of the needs of the issuer and the holder forms the value intersection of NFT, that is, the utility in a specific scenario.

This brings us to the Metaverse intuitively. In the virtual world, NFT serves as a symbol of digital identity and binds corresponding digital assets, corresponding to corresponding rights and interests. So in the past two years, while NFT was popular, everyone was talking about the metaverse. Of course, we are still talking about it now, but the direction of the wind is different.

Due to user safety considerations and system map limitations, it is difficult to bring the immersive experience of the metaverse to outdoor spaces with existing technologies. People cannot run around with VR glasses. And even at home, users are still limited by the physical space of the real world. TA may hit the wall and break the cup…

The development of the metaverse is based on the technical support for immersive and anytime, anywhere experience, AR/VR, real-time rendering, computing power, network bandwidth, and even olfactory and tactile experience, as well as supporting the development of future brain-computer interfaces…

The development of these technologies cannot It can be achieved overnight, but an immersive experience that is more convenient anytime, anywhere and free from complex hardware devices takes longer to accumulate. The continuous loss of Meta (Facebook) metaverse business, and the dismal number of 200,000 registered users of its core metaverse product Horizon World by the end of 2022 (far from its original goal of 500,000 registered users), may passively give Metaverse This concept of early consumption has burst some bubbles.

The concept associated with the use rights of NFT in specific scenarios, in addition to the Metaverse, also has Web 3.0.

In simple understanding, Web 3.0 is a decentralized Internet ecosystem based on the blockchain protocol, and Web 1.0 (information is published by the portal website, the user is only the receiver, and the user role is the reader) and Web 2.0 (users are not only information receivers but also information providers and content creators).

Web 3.0 is user-centered, and the value of information is in the hands of each user (users are creators and owners of information value), the circulation of value is realized through cryptocurrency, NFT, or digital collections. In the ideal Web 3.0 era, users can use any platform with only one decentralized universal identity (a blockchain wallet address).

The core value of Web 3.0 is decentralization and community building and consensus. The realization of true decentralization still has a long way to go based on the development and improvement of technology and related regulations, but the community consensus is a value that can be realized immediately. Based on the consensus of the community, users will spontaneously participate in brand building. Users will not only play the role of users but also creators of brand value.

The Bored Ape (BAYC) NFT project is the most typical representative based on the consensus of the Web 3.0 community. NFT holders have the rights and interests of their NFT secondary creation and commercialization, which maximizes the community consensus.

Whether it is the Chinese Li Ning Boring Ape T-shirt derived from #4102 Bored Ape NFT or the Bored Ape-themed burger restaurant derived from #6184 Bored Ape NFT, these derivative IPs and their owners are constantly delivering freshness to the native Web 3.0 community of NFT projects The vitality and value superposition.

Brand NFT chooses the path of combining Web 3.0 and its community building, which will be closer to users and more sustainable than building complex metaverse application scenarios.

Typical examples

In August 2021, to commemorate the 200th anniversary of the birth of the founder of the Louis Vuitton brand with the same name, LV launched the metaverse concept mobile game “Louis: The Game” with LV limited NFT lottery. When the game was launched, it quickly ranked first in the IOS free game rankings. It can be said that this is a successful brand marketing event.

However, similar to other NFT issuances for the purpose of one-time event marketing, after the event is over, no one cares about NFT. On Opensea, the largest foreign NFT trading platform, the 10 Vivienne NFTs on the shelves have not been traded in the secondary market for nearly half a year, which means that the NFT project has lost its activity.

Without the continuous operation of the community, even with the metaverse concept and the blessing of the brand, it is difficult to maintain the popularity of only one game, and those users gathered through marketing activities will find it difficult to interact with the brand again after the event.

In stark contrast to this, one is Starbucks and the other is Porsche.

In December 2022, Starbucks launched a beta version of the Web 3.0 community platform Starbucks Odyssey that combines the membership reward mechanism with NFT, and in the US market, selected Starbucks members, employees and partners will participate as the first batch of community members to participate in unlocking specific experiences, including obtaining NFT stamps by participating in offline store activities, checking in at different coffee stores, sharing coffee experiences, etc.

Community members can also purchase limited-edition NFT stamps co-created by Starbucks and artists on Starbucks Odyssey, and can conduct second-hand stamps in the community. The more NFT stamps you have, the more points you get.

Points can be redeemed for other perks like free coffee, a virtual espresso martini-making class, a visit to Starbucks’ Hacienda Alsacia coffee farm in Costa Rica, and more. A series of rich interoperability mechanisms between NFT and point rewards, as well as offline community activity plans, have made Starbucks’ Web 3.0 community and NFT projects highly anticipated.

Consumer goods have genetic advantages in the establishment and operation of Web 3.0 communities due to their low prices, high-frequency consumption, and huge customer groups. How to avoid the low value of brand NFTs caused by low commodity prices is left to consumer brands. Questions to think about in NFT strategy. Let us wait and see the answer sheet handed over by Starbucks.

Contrary to consumer goods, car brands, especially luxury car brands, are a category where it is difficult to implement NFT projects into practical application value related to brands. The selling price of millions of dollars makes the physical goods (cars) and the services surrounding the physical goods (maintenance, etc.) have a high threshold in terms of price or cost. This makes how NFT is priced and how rights are formulated.

Web 3.0 community how to maintain a high degree of activity through brand activities has always been a problem that plagues the NFT strategy of car companies. This is why the NFT projects of domestic and foreign car brands have always been just a gimmick to catch the popularity of NFT in the past, and there are few successful projects with high user retention.

During the Spring Festival in 2023, Porsche’s global simultaneous release of NFT and the implementation of its Web 3.0 community strategy will set a benchmark for the automotive industry in relation to Web 3.0.

The first is the digital collection of the 911 Dreamer series that Porsche China has exclusively customized for Chinese users based on the regulatory requirements of the Chinese market and cast on the domestic compliance alliance chain.

From the organization of the publicity and distribution activities of the project release to the setting of NFT rights and interests, everything reflects the importance that this luxury car brand attaches to the Web 3.0 community and its full strategic considerations.

At the official press conference on January 13, Porsche China not only invited mass news media and automotive professional media but also specially invited several media professionals and KOLs in the Web 3.0 industry, and conducted one-on-one interviews with these industry insiders in order to Listen to everyone’s valuable opinions on the future development of Porsche China’s Web 3.0 community.

On the other hand, the NFT project PORSCHΞ 911, which was released by the Porsche German headquarters on the same day and cast on Ethereum, paid a considerable price due to mistakes in the communication rhythm and strategy. Although the question-and-answer page of its NFT project official website clearly states that it is committed to the establishment of the Web 3.0 community and that NFT holders will have a series of “Money can’t buy” experiences and have the opportunity to co-create with Porsche in the Web 3.0 world.

The future but did not clearly indicate what these experiences that cannot be bought with money were before the public sale. The lack of clear communication at the level of rights and interests, coupled with its relatively large number of NFT issuances of 7,500 and the price of 0.911 ETH, made Opensea’s secondary market show a downward trend in floor prices a few hours after the public sale started, and once fell below the issue price. Two days later, after Porsche announced that it would stop casting to reduce the supply of NFT, the price in the secondary market quickly rebounded and was close to three times the issue price at a high point.

Some netizens on Twitter commented that the high price and non-scarce quantity of the PORSCHΞ 911NFT project issued by Porsche’s German headquarters violated the spirit of Web 3.0, and some domestic media people also defined it as a failed attempt at Web 3.0. The author does not agree with this statement. .

Perhaps Porsche has indeed overestimated the enthusiasm of the market in setting the number of releases, but in terms of the spirit of Web 3.0, Porsche has delivered a qualified answer sheet, and especially for relatively traditional car companies, this is not easy.

PORSCHΞ 911’s official Twitter announced the decision to stop casting as follows: “Our holders have spoken…” – About stopping casting, it is the voice of Porsche PORSCHΞ 911 NFT holders, and Porsche responded quickly and finally adopted this suggestion, which is It is also fulfilling the promise of its official project website: NFT holders will create a future with Porsche in the Web 3.0 world.

After shutting down the foundry, Porsche posted 9 tweets on Twitter to introduce the rights and interests of its PORSCHΞ 911 NFT project holders and community activity plans. The general reaction of fans was, “Why didn’t you say it earlier?”. Perhaps, this is the strict German style of acting.

Since then, with the official establishment of the Discord community, which is only open to 2,363 PORSCHΞ 911 NFT holders, and the launch of the community’s first activity, the prelude to Porsche’s global Web 3.0 layout has also officially opened.

On Twitter in the west, 2,363 holders of PORSCHΞ 911 NFT are cheering to become members of the PORSCHΞ 911 Web 3.0 community; in the circle of friends in the east, holders of Porsche 911 Dreamer digital collections are trying to grab their dream Excited for the skin of the home collection. At the beginning of 2023, the biggest brand winner of the global Web 3.0 is undoubtedly Porsche.

Conclusion

Whether the application scenario of brand NFT is bound to metaverse or bound to Web 3.0 is purely a matter of opinion, and there is no exclusiveness between the two.

No matter which path it is, it is better than using NFT as a pure marketing tool for a short time. But what is certain is that with the popularity of Open AI and the heavy support of big companies, Web 3.0, where users create content and enjoy value, will accelerate with the expansion of Open AI’s application range.

The Metaverse may not have to be about everyone, but the Internet is about everyone. The brands that get on the car first in the early stages of the development of the new generation of the Internet can always enjoy the dividends of the first movers. ‍‍‍‍‍‍‍‍‍‍‍‍‍

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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