The odds were piling up against NFT.NYC 2022 when the cryptocurrency entered a bear market earlier this summer. In May, we could have put more focus on addressing the issues facing the industry. The conference itself may have been a more serious way for him to approach NFTs, but many of the projects that attended the event hired Snoop Dogg impersonators to garner hype rather than move the industry forward. It seemed to focus on And instead of an informative session on how to build a full-fledged use case for NFTs, many attendees said “there’s no quiet space” at a conference where partying with billionaires and models seemed like a highlight. ” reported.
So what was so much of the NFT.NYC project missing? Oddly enough, the answer didn’t come from another tech event, but from Coachella, an iconic music festival with even fewer quiet spaces. it was done. We’ve already seen NFTs used in fundraising and entertainment such as collectible music, but apart from digital ownership of something as simple as a concert ticket, they offer dynamic utility to owners. I had very little to do. Coachella took a different approach.
Visible value NFT
When NFTs first gained global attention, they were commonly seen as a way to give their owners bragging rights. NFTs offer digital ownership. It first rose to prominence by enhancing and digitizing the traditional art world after making a high-profile debut in the cryptosphere. From the outset, NFTs were set to have a static role in the context of buying and selling digital rights, offering few advantages beyond ownership and bragging rights.
After capturing the art world, NFT quickly moved into sports, especially with the emergence of digital sports collections. And NFT is so grateful to have given the old school memorabilia trade a makeover, just as NFT sports memorabilia has breathed new life. It has led to blockchain-based sports gaming companies like Sorare that promote and grow fan communities.
The music industry quickly carried the baton of NFTs. He’s already invested in NFTs, with major artists like Grimes, Katy Perry, and BTS creating entire collections or funding NFT-focused projects. But many of his NFTs of celebrities were actually NFTs that did nothing. Fans can connect with artists of their choice, but the benefits usually don’t stop there.
It is perhaps fitting that one of the world’s most successful music festivals has decided that selling worthless tokens to fans is the wrong way to successfully launch an NFT. Instead, Coachella issued 10 of his NFTs. This included luxury camping, gourmet meals, and a lifetime pass. Of course, lifetime paths aren’t untested in other smaller NFT projects. But Coachella fans seem to agree that the eternal entry card to the festival really raises expectations as far as the technology’s use case is concerned.
Coachella sold all 10 NFTs for a combined total of about US$1.5 million.
The success of these tangible real-world benefits is too much to say the least. Research shows that the majority of people are happier when buying experiences like concerts, travel, and fine dining than when they buy things. Coachella successfully elevated the latter to the former, giving people fun and memorable experiences with digital assets.
The success of music festivals shows how NFTs can shape entertainment as a whole. Most mainstream music fans wouldn’t mind owning her NFT just for pride. But with VIP access to music festival meet-and-greets with their favorite artists, and concert posters to hang in their rooms, more fans could happily dive into his NFT sea. .
Breathing new life into NFTs
Unfortunately, Maslow’s Hierarchy of Needs makes no mention of NFTs. However, brands can measure the purchasing motivations of their target consumers and see how these habits and desires align with his NFT products.
Research shows that over 60% of people are now somewhat familiar with NFTs, but only 4% have actually bought, made, or sold an NFT in the past. . So while awareness of NFTs is on the rise, brands need to give their customers a reason to be interested in NFTs to successfully sell them.
Once companies have determined which products or services are right for their audiences, NFTs can be used as a vehicle to do so, much like ticket stubs for event access. However, the value must continue in the future. Collectible value must extend beyond novelty to provide dynamic and lasting benefits. If not, his 99% of consumers would simply view it as the same as a physical ticket stub, useful as a keepsake but not essential.
In addition to guaranteeing long-term value, NFT sellers should offer some help to potential customers as they make their first purchase. According to one survey, her second most likely reason why people haven’t bought yet is that they don’t understand NFTs.
If a company wants to leverage NFTs, it needs to hold the customer’s hand to help them through the purchase process. increase. This also increases the likelihood of a purchase. Most consumers are willing to spend more money on something that comes with a great customer experience and service. With this in mind, the NFT community needs some serious adjustments to turn all the hype into a thriving industry.