Fuad Fatullaev, Co-founder and CEO of WeWay ‒ a Web3 ecosystem for bloggers, celebrities, and media personalities
The NFT and metaverse technologies are changing rapidly today, attracting more and more brands to unique projects that hold the potential to forever change the future.
We have already seen a number of brands from completely different spheres join the race, with the most notable example being Meta, but also Applei, Louis Vuitton, Coca Cola, and many others.
Facebook (NASDAQ:META), for example, decided to invest $10 billion in metaverse technology, once again trying to become the early mover and the leader of its development. Microsoft, however, outperformed it with a $22 billion contract for Mixed Reality technology.
The world is moving fast, but unfortunately, not all businesses and people are following in its footsteps, which might be bad for them. In ignoring the trends, they might be left behind, as they simply do not understand how it works, what benefits there are for them and their clientele, or how powerful this new trend is.
Why do brands need to adopt NFTs and metaverse?
There are some benefits that are universal for everyone, be they McDonald's or Apple (NASDAQ:AAPL). Early adopters will get the advantage over competitors and draw attention to their own brand. For example, they could find new ways to engage users or use the metaverse to showcase and sell their products. They could hold virtual events, and introduce new forms of advertising in virtual reality.
Companies like Tommy Hilfiger, Louis Vuitton, PepsiCo (NASDAQ:PEP) and alike, can benefit from the metaverse by offering digital goods. McDonald’s already offered an NFT with which it celebrated its sandwich, the McRib, at its 40th anniversary. Things like that give brands the opportunity to showcase and sell their products, offer exclusive merchandise, special discounts for NFT owners, and access to private events. TripShock, for example, offered crypto wallet connections and discounts for Based Fish Mafia NFT-holders. Alternatively, companies can rent commercial spaces in their metaverse to smaller brands, sell virtual clothing and accessories, such as Nike’s NFT sneakers.
Meanwhile, some of these things can also be used by tech giants such as Google, Apple, Microsoft, or Meta, especially when it comes to advertising and digital conferences and meetups. They can create more interactive and immersive social media, and generally, social experiences. They can also launch their own games on blockchain, like Square Enix is planning to do; develop supercomputers, store massive quantities of data, power immersive virtual worlds, and more.
What problems do brands face when entering the NFT and metaverse sectors?
Of course, despite their efforts and hopes, brands still face issues when entering the metaverse. Brands need to adjust, and sometimes completely re-learn marketing strategies.
They sometimes have too high expectations about both their users and employees, who also need to learn how to use this new technology. Some employees have spent years, if not decades using the same software for specific purposes, and now, because of blockchain technology, they must learn how to use this new tech on the fly. Incentives can help here, as well, to help ease the transition. The usefulness and advantages of the new tech will take care of the rest. This technology is very easy to adopt, once people start giving it a chance.
Another issue is the fact that it is challenging to explain NFT credibility, or explain the value of NFT products. After all, most people see them as digital images that can easily be copied and downloaded, and if that is the case, then what is the point in paying for them?
The fact is that copies can be made with ease, that much is true. However, users who have copies cannot do anything with them, as they do not copy the NFT — only the artwork represented by the NFT. The ownership of the original artwork still lies with the NFT holder, and they are the only one who can prove it with their NFT. Think of Mona Lisa, Leonardo da Vinci’s famous painting. There are countless copies of the painting all over the world, recreated by artists of all sorts. However, only the original one has a true value of $870 million.
The artwork represented by the NFT has the true value of the original artwork, and only the NFT holder can prove that they own it, while all digital copies that people can make are practically worthless. Once again, the solution lies in educating the masses about the fact that NFTs provide proof of ownership and value that cannot be taken from them.
Conclusion
The metaverse and NFT adoption is on the rise, as these technologies are rapidly developing. They can bring a great change to the brands that are developing and using this new tech for their advantage, which is especially true for the early movers. Of course, there are also many issues to resolve, such as learning how to navigate the new digital worlds, how to best apply the new digital goods and assets, and how to educate users to do the same.
However, with such great potential, this technology is attracting regular people, as well as brands, and there is a great desire to get the benefits that metaverse and NFTs have to offer. Companies that enter the NFT and metaverse market expect an increase in profits or the number of potential customers, as well as a positive result for the invested funds and time spent. This new technology will definitely be rewarding for everyone involved, and we expect that this will lead to mass adoption in the next several years, should the development and the interest remain as high as they are right now, or higher.
