Earlier this summer, as the crypto entered a bear market, the odds were against NFT.NYC 2022. But even – and perhaps especially – as the market for non-fungible tokens plunged to $700 million in June , compared to $2.6 billion in May, there could have been more focus on addressing the issues facing the industry. While the conference itself may have attempted to take NFTs more seriously, many of the projects attending the event seemed more focused on hiring a Snoop Dogg impersonator to generate hype than to advance the industry. And instead of informative sessions on how to create serious use cases for NFTs, many attendees reported “zero silent space” at a conference that seemed to culminate in partying with millionaires and dummies.
So what was missing from many NFT.NYC projects? Curiously, the answer doesn’t come from a different tech event, but rather from an iconic music festival with even fewer quiet spaces – Coachella. We’ve seen NFTs used in entertainment before for fundraising and even collectible music, but they’ve largely failed to offer any dynamic utility to their holders, other than mere digital ownership of something so simple. than a concert ticket. Coachella took a different approach.
Tangible value NFTs
When NFTs first burst onto the global scene, they were generally seen as a way to grant holders bragging rights. NFTs offer digital property, which first gained attention to enhance and digitize the traditional art world after their eye-catching debut in the cryptosphere. From the outset, NFTs were set up to have a static role in the context of buying and selling digital rights, with few other benefits to offer beyond ownership and bragging rights.
Shortly after capturing the art world, NFTs transitioned into sports, especially with the advent of digital sports collectibles. And NFTs are largely to thank for giving old-school memorabilia a makeover, like how NFT sports memorabilia has taken on new life. Success in sports has led to blockchain-based sports game companies like Sorare implementing NFTs to promote engagement and expand fan communities.
It wasn’t long before the music industry took over from the NFT. Major artists like Grimes, Katy Perry, and BTS have already invested in NFTs, whether by creating an entire collection or funding an NFT-focused project. But many of the celebrity NFTs were just that, NFTs with no real use. Fans can connect with any artist they want, but the benefits usually end there.
Perhaps rightly so, one of the most successful music festivals in the world decided that selling worthless tokens to fans was the wrong recipe for a successful NFT launch. Instead, Coachella issued 10 NFTs, which included luxury camping, gourmet food and lifetime passes. Of course, it’s not like Lifetime Passes haven’t been tried by other smaller NFT projects. But Coachella fans seem to agree that an eternal pass to this festival really ups the ante when it comes to the use cases for this technology.
Coachella sold all 10 NFTs for a total of nearly US$1.5 million.
The success of these tangible, concrete benefits cannot be underestimated. Research suggests that the vast majority of people are happier buying an experience – whether it’s a concert, a trip or a good meal – than spending on a material item. Coachella brilliantly elevated the latter into the former, giving people an enjoyable and memorable experience with their digital assets.
The success of the music festival illustrates how NFTs can shape entertainment in general. Most mainstream music fans don’t care about owning an NFT just out of pride, let alone enough to create a crypto wallet and figure out how to buy the digital asset. But if it comes with VIP access to a meet and greet with their favorite artist at a music festival or a concert poster they can hang in their room, more fans might be willing to dive in. in NFT waters.
Breathing new life into NFTs
Unfortunately, Maslow’s Hierarchy of Needs does not mention NFTs. But brands can gauge their target consumer’s buying motivations and see how those habits and desires might relate to an NFT offer.
While research suggests that over 60% of people are now somewhat familiar with NFTs, only 4% have actually bought, created and/or sold an NFT in the past. So while awareness of NFTs is on the rise, to be successful at selling NFTs, brands need to give their customers a reason to care.
Once a company has determined the appropriate product or service for their audience, they can use an NFT as a vehicle, like a ticket stub for access to an event. But the value must also continue down the line – the collection must extend beyond novelty and offer dynamic and lasting benefits. Otherwise, 99% of consumers will consider it just a physical ticket stub, nice as a souvenir but not essential.
Beyond simply guaranteeing an extended value, NFT sellers should also offer some sort of assistance to potential buyers in making their first purchase. According to a survey, not understanding NFTs was the second most likely reason people hadn’t purchased them yet.
If businesses want to capitalize on NFTs, they will need to hold hands with their customers to help them through the buying process. This can include instructions on setting up a crypto wallet or prioritizing exceptional customer support, which can also increase the likelihood of a purchase – most consumers are willing to spend more on something that comes with of exceptional customer service and experience. With that in mind, the NFT community needs some serious tweaking to turn all the hype into a thriving industry.
#NFT.NYC #Missed #Coachella
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