The nosedive in cryptocurrencies and nonfungible tokens peppered conversations, panels and events at NFT.NYC, a four-day event last week focused on the virtual baubles.
Attendees and executives flocked to talks and parties across New York, some featuring musical acts like the Chainsmokers and Madonna. Some events were held on yachts, much like last week’s Cannes Lions International Festival of Creativity.
Marketers seemed unwavering in their zeal for NFTs. The price of crypto is down—by an estimated $2 trillion since November—and high prices for NFTs have faded. Most NFTs are purchased using cryptocurrencies. And as the crypto market has slumped, so has the value of the digital collectibles.
Some companies might fail because of that, but the industry is going through a necessary maturation process, said Julian Holguin, chief executive of Doodles, a collection of 10,000 NFTs.
“At the end of the day…I think you’re going [to] see a lot of standout use cases from the people that were treating these like lifetime projects and real businesses—not just a way to generate some quick capital,” he said. “The future is incredibly bright.”
Companies including Samsung Electronics Co. , virtual world platform The Sandbox, and Paramount Global’s Nickelodeon held events alongside the conference last week to showcase the future of NFTs, the metaverse and Web3.
Many buyers of NFTs hope to use their digital collectibles in the metaverse, a term to describe virtual worlds. Web3 is a form of a decentralized internet built on the blockchain, which is the same technology underpinning cryptocurrencies.
Many companies at NFT.NYC spoke of how customers might benefit from brands that create NFTs and enter the metaverse, said Jeff MacDonald, social strategy director at Mekanism, an ad agency recently acquired by marketing holding company Plus Company.
“They’re showing real-world examples of how if you are a loyal customer, or if you buy into our product early, you’ll see an upside, whether the upside be financial, or bragging rights,” he said.
Companies such as Gucci and Samsung have been rushing to create NFTs or set up lands in the metaverse to attract younger consumers, freshen their brands and generate new revenue streams.
Many NFT projects are now pivoting from virtual evanescence to longevity, with yearslong product road maps and plans to expand beyond digital-art collectibles.
For instance, Doodles announced that it had hired rapper Pharrell Williams as its new chief brand officer. As part of his appointment, Mr. Williams will executive produce an album for the Doodles community.
Full Story at WSJ