Hello! This article was originally written in Japanese.
Little by little, more and more people are talking about how NFT and blockchain can be used in the real world, and how they are actually being used.
24karat aims to use NFTs and tokens not for short-term speculative goals, but to create long-term relationships between brands and fans.
One such thing that has inspired us is a column written by Scott Galloway and Arun Sundararajan.
“NFT Unpack” by Scott Galloway
Scott, who is well known in Japan for his book on GAFA, seems to be speaking more and more about NFT these days. In this article, he analyzes the fact that the bubble of NFT itself is expected to be over in 2021 and that speculative activities are expected to calm down, while he explains that the essence of NFT is to bring scarcity and authenticity to the digital world and that these two factors have been in existence since ancient times. He writes that it appeals to human instincts.
In one case, “Brands,” he asserts that scarcity and authenticity are the essence of a brand. For example, you only have to look at how much people care about a brand’s logo to see that. The article predicts that by utilizing the elements of scarcity and authenticity, the brand business, which has until now been built around the real world, will create a new digital fusion experience that users will be more enthusiastic about.
“How Your Brand Should Use NFTs” by Arun Sundararajan
Arun from NYU’s Stern School of Business takes a more branded case and lays out a path for NFT as a tool for blending real and digital experiences. I was so impressed with the article that I approached him via LinkedIn, and fortunately, we even got to talk to him in person!
The article recommends experimenting and evolving through the following steps: 1. work with the brand community while putting out NFT items as digital collections, as Campbell’s and Coca-Cola have done. Use it as a means to increase user loyalty; 2. Make the NFT item an experience tied to the brand’s real product. For example, when you buy a product, an NFT item will be added to the purchase, or an event will be held. 3. Evolve the experience into a more digital, metaverse experience.
In particular, 24karat agrees with the last part of the article, which states that NFT should be experimented with by setting KPIs for the purpose of creating a future where the product and user experience will be better, rather than how high the NFT can be sold in the open sea.
NFT and blockchain have been the subject of much debate regarding their use, but if we can create fun and exciting experiences for users, it will naturally become a well-established technology in the world.
Stay tuned for more examples of 24karat’s work with brands!
Thank you, professor!!!