Why Brands Still Care About NFTs
Amidst a dip in NFT sales this year compared to the highs of summer 2021, brands like Casio and celebrities such as Caitlyn Jenner are demonstrating continued faith in the potential of digital collectibles.
Statistics show that NFT transactions are significantly lower this year. In addition, once valuable NFTs are now being sold for much less than what they were purchased for a few years ago.
For example, CryptoPunk #5822, which holds the record for the most expensive CryptoPunk sale, sold for 8,000 Ether in 2022, valued at around $23 million at the time.
On August 19, the NFT was transferred to an anonymous crypto wallet for an undisclosed amount. However, this downward trend hasn’t deterred everyone from engaging with NFTs.
Brands Embrace NFTs Despite Market Fluctuations
Despite declining interest in digital collectibles, brands continue to launch NFT collections.
The Japanese multinational electronics company Casio recently announced a collection of NFT sneakers. Casio teamed up with STEPN GO, the Web3 lifestyle app, to launch the sneakers as part of the “virtual g-shock” project.
A limited number of 800 sneakers were made available through a raffle mint event held during August 26 to 29 on the Mooar gamified marketplace.
— G-SHOCK (@GSHOCK_OFFICIAL) August 22, 2024
「STEPN GO × G-SHOCK : Time to Move」コラボが登場
Move-and-Earn（運動して稼ぐ）のアプリであるSTEPN GO @Stepnofficial と提携し、G-SQUADシリーズをメインモデルとしたNFTスニーカーをリリース
詳しくはこちらhttps://t.co/VJeCkFKsBo#GSHOCK #VIRTUALGSHOCK #FSL #STEPNGO pic.twitter.com/Ou9wwjGV27
Yawn Rong, Co-Founder of FSL – the Web3 product platform that launched STEPN GO on the Apple app store – told Cryptonews that the “G-SHOCK x STEPN GO” NFT sneakers are unique. Rong noted this is because they are the first-ever tradable Genesis Sneakers within the STEPN GO ecosystem.
“This gives them intrinsic value and rarity, making them highly sought-after by both collectors and players,” Rong said. “These NFTs also integrate utility within the STEPN GO app, allowing owners to earn rewards.”
In addition to Casio’s NFT launch, data collected from the Vogue Business Index shows that 17% of brands listed have worked with NFTs since Winter 2021. Louis Vuitton, Dolce & Gabbana, Balmain, Jimmy Choo, and Givenchy have all been involved with NFTs, according to the Vogue Business Index.
Rong believes that brands like Casio are increasingly interested in NFTs because they offer functionalities beyond static digital art. Rather, these NFTs provide utility and engagement within a broader ecosystem.
“In the case of STEPN GO, NFTs are integral to the user experience, offering real-world value through rewards for physical activity,” Rong said.
He added that the utility-driven approach aligns with Casio’s innovation ethos, allowing the manufacturer to reach new, tech-savvy audiences.
“This also enables the creation of unique, interactive experiences that blend physical and virtual worlds,” Rong commented.
NFTs: Building Loyalty and Bridging Experiences
Zhen Yu Yong, CEO of crypto wallet creator Web3Auth, told Cryptonews that brands are also increasingly recognizing how NFTs can foster customer loyalty.
For instance, Yu Yong explained that Web3Auth collaborated with McDonald’s Singapore to launch the “Grimace NFT.” Holders can participate in games and activities, unlocking real-life rewards redeemable at McDonald’s locations.
“This approach not only incentivizes repeat visits to physical stores, but also strengthens the connection between the brand and its customers,” Yu Yong said. “As NFTs continue to evolve, they are becoming powerful tools for bridging digital and physical experiences, enhancing their appeal to both brands and celebrities alike.”
Yu Yong further remarked that the collectible aspect of NFTs still holds significant appeal.
“This is especially the case in fandoms or niche communities where owning the NFT itself serves as a badge of honor,” he said. “Utility-driven NFTs can help sustain engagement over time, keeping the NFT relevant and adaptable to future trends.”
Celebrities Join the NFT Movement
A number of celebrities have also launched NFT collections this year. For example, Yu Yong shared that Web3Auth partnered with “Collect Trump Cards” to launch an NFT series called “America First” Edition.
Yu Yong explained that Trump NFT holders can join Presidential candidate Donald Trump for a GALA dinner, creating a sense of exclusivity and interaction.
“Additionally, NFTs make it easier to bootstrap and sustain communities by token-gating them; only token holders can participate, which fosters a more dedicated and aligned community,” he said.
Caitlyn Jenner recently tokenized and auctioned her 1976 Olympic gold medal as an NFT on the Base blockchain. Sources have noted that NFT holders will receive a “deed” tied to the digital collectible.
All credit to the incredible team, we have made history, and built over the last year @1976medal oh and of course on @base and thanks to my little
— Caitlyn Jenner (@Caitlyn_Jenner) August 10, 2024
Auction for Fractionalized Ownership of the RWA Launched yesterday! https://t.co/aZti8Z94Az https://t.co/6KtL1wP9iZ
Regulatory Uncertainty and the Future of NFTs
While it’s notable that brands and even celebrities continue to show interest in NFTs, unclear regulations may hamper adoption.
On August 28, leading NFT marketplace OpenSea received a Wells notice from the U.S. Securities and Exchange Commission (SEC), placing the company under scrutiny for potential securities violations.
“This undoubtedly raises questions about how NFTs are regulated in the US,” Yu Yong said. “Such incidents underscore the uncertainty that brands and celebrities face when entering the NFT space.”
Neil Mullin, CEO of Web3 consumer engagement platform Mojito, told Cryptonews that as regulations continue to evolve, brands must be able to navigate the changing tides.
“Web3 experts assisting brands in navigating the evolving digital asset regulations are crucial for ensuring compliant and sustainable development,” Mullin said.
Experts: NFTs to Thrive and Evolve
Challenges aside, industry experts think that NFTs will continue to advance. Yu Yong sees strong indicators for the continued interest of brands and celebrities in NFTs.
However, he added that the future of NFTs relies on three key elements: the climate of the crypto market, regulations, and innovation in user experience.
“The recent Wells notice issued by the SEC to OpenSea highlights the ongoing uncertainty in the regulatory landscape. Brands and celebrities will likely proceed with caution, awaiting clearer rules and frameworks,” he said.
Ben Illian, Co-Founder at Book.io – a Web3 marketplace for audiobooks – further told Cryptonews that the ability to mint and protect digital media on the blockchain will also lead to NFT adoption.
“For brands, this presents a transformative opportunity. Imagine Nike selling a sneaker that comes with a limited edition NFT of a Drake album, each with unique covers and unreleased tracks,” Illian said. “The possibilities are endless—NFTs have evolved far beyond just public images.”
The post Why Brands Still Care About NFTs appeared first on Cryptonews.
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TRON’s memecoin frenzy propels $1,200 investment to a $10 million peak
One trader on the TRON network, TAMrp, turned an investment of $1,200 in TRON BULL memecoin into $10 million. According to Arkham Intelligence data, the trader acquired $780 TRON BULL on Sunpump and bought an additional $390 worth of the tokens when it was listed on Sunswap.
The meteoric increase in the value of the trader’s investment highlights the current memecoin mania on TRON. The Justin Sun-backed network has become the latest blockchain to ride the memecoin hype, joining others such as Solana, Base, and TON.
Trader BULL holdings are now down to $4 million
TRON BULL is one of the new memecoins on the TRON network. Although it has only been around for a few days, the token has seen its value skyrocket significantly, rising by almost 4 million percent in 24 hours. CoinGecko data shows it was trading at $0.00000327 on August 29 but soared as high as $0.1635 on the same day.
The token is now down 20% from its all-time high on CoinGecko, falling to $0.121. Despite the decline, TAMrp’s investment of 33.062 million BULL is still worth $4.31 million. The address has yet to offload any of its holdings, leading to speculations as to when it will sell.
However, many people in the crypto community believe that the address belongs to an insider who will likely dump on retail traders soon. This might also be tricky for the trader, as they are the biggest token holders. Any sale could trigger a free fall, given that the total liquidity for the token is just $1.4 million.
Meanwhile, other traders are already taking profits. DEX Screener data shows that some top traders have made profits as high as $500,000 on the token. However, some have also seen major losses, with one trader losing $302,000 after buying for $382,700 and selling for $80,000.
TRX leapfrogs TON in the top crypto-list
The arrival of memecoins on TRON has positively impacted its network activity. The network, which has been relatively quiet for years, has sprung to life as traders gamble on memecoins hoping to hit a goldmine. TRON-based memecoin deployer Sunpump has issued almost 65,000 memecoins since its creation, generating 25.9 million TRX ($4.17 million in revenue).
Meanwhile, the volume of decentralized exchanges (DEX) transactions on TRON has seen the biggest percentage increase among the top ten networks by DEX activity in the past week. It is up 73.45%, reaching $180.49 million. Although this pales compared to the $749 million on Solana and $1.1 billion on Ethereum, its growth has led to bullishness among TRX investors.
Unsurprisingly, the TRON token TRX is now ranked 9th among the top ten cryptocurrencies by market cap. This is mostly due to the token’s stable price performance compared to The Open Network’s TON, which has fallen 18% over the last seven days.
Still, there are more milestones ahead for the TRON memecoin ecosystem. It is still chasing its first billion market cap memecoin. Whether TRON BULL would be the token to reach that milestone remains to be seen.