How to Use NFTs for Business and Public Administrations
One of the most popular and emerging technologies for 2022 are NFTs or non-fungible tokens. Although they are best known for being used to produce digital works of art or collector’s items, large companies and public administrations have taken advantage of their potential to make other services or products available to the public: ‘analog’ items such as the deeds to a house, a city’s historical heritage or a company’s archive are some examples of this. In this article, you will find some inspiring stories of how both are taking advantage of this technology.
NFT and business
In the 1960s, the Campbell’s can of soup became a work of art thanks to Andy Warhol. In 2021, to celebrate a redesign of its labels, the company joined the NFT bandwagon: artist Sophia Chang created 100 unique NFT artworks. Proceeds from their sale went to the U.S. hunger-relief organization Feeding America.
Want to preserve a piece of Campbell's history? Bid on our 1-&-only animated NFT! All funds raised will be donated to @FeedingAmerica. Auction ends TODAY on @opensea at 5:30 pm EST! #NFT #NFTs #digitalart https://t.co/hzR8F2T1mA pic.twitter.com/PREYKWoDX8
— Campbell's (@Campbells) August 6, 2021
Also in 2021, Coca-Cola auctioned four exclusive NFTs of as many items that were part of the company’s history, such as a vending machine from the 1950s or a jacket, but reinterpreted for the digital world. Once again, the proceeds went to charity.
By doing so, fans remain linked to the brand with these digital reproductions, which in turn help companies earn more revenue or enhance their brand image (as we have just seen, such revenue can go to social purposes).
NFT can also be a way for sports teams to make more money. In the United States, it is becoming a way to digitize the tradition of exclusive sports cards. In Spain, the Professional Soccer League has reached agreements with several companies to create products such as videos and games for fans.
Neither auctions nor sales. In France, McDonald’s created four pieces of art from as many of its flagship products and gave them away in a raffle.
— McDonald's France (@McDonaldsFrance) April 6, 2021
Beyond art, leisure, or entertainment, NFTs have other uses. In 2021, the transaction of an apartment in Kiev (Ukraine) was completed through an NFT that prevented the transfer of money until the conditions of sale and purchase were met. Non-fungible tokens also serve to certify the owners of a property, in the manner of traditional deeds.
Another example of technology for business is in the logistics sector. NFTs are used to track and trace goods during transport. Each token uniquely labels a package, a batch, or a container.
NFTs also boost the presence of many companies in their ‘digital headquarters’, with some of the strategies shown above. The fashion firm Mango announced this May the co-creation of five digital works based on as many pieces by Joan Miró, Miquel Barceló, and Antoni Tàpies, which join the launch of 100 NFT T-shirts.
Mango is not the only design company that has opted for NFT in its metaverse. Dolce & Gabanna combined physical clothing and wearable digital art in a virtual fashion show. An NFT item called Glass Suit was auctioned for just over $1 million, and the person who bid also walked away with the physical replica.
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NFT For Public Administrations
Traditions are not at war with the digital world. Local festivals can use NFT to carry out surprising actions or to reach new generations.
This is what the City Council of Zaragoza (Spain) has done on the occasion of the celebrations for the Virgen del Pilar. For several days, Internet users accessed a web page that reproduced the Plaza del Pilar; there they had to find a basket with cobblestones to share on social networks and enter a raffle with, among other prizes, exclusive NFTs inspired by the historic local troupe of giants and big-heads.
New Revenue Sources
Related to the dissemination of culture and art that we talked about earlier in the article, administrations could take advantage of NFTs to complement the profits of their museum stores.
There have already been several experiences. The Uffizi Gallery in Florence (Italy) has sold a unique digital copy of Michelangelo’s ‘Tondo Doni’ for 140,000 euros. The Hermitage in St. Petersburg (Russia) has also obtained income thanks to NFT auctions of five of its works.
Include NFTs in your business strategy
The concept of exclusivity makes customers more interested in NFTs and they approach brands with new eyes. We have seen auctions, contests, sales… How would you apply these NFTs in companies and public administrations?
At Plain Concepts, we can help you apply them to your business strategy. We can schedule a meeting to find the best way for your business to take advantage of this innovation, and then be with you during the whole process of development and launch. We want to know more about you!