In an interesting development within the digital asset space, dynamic NFTs have emerged as a catalyst for yet another revolution. These NFTs possess the ability to evolve in response to real-world parameters and data, paving the way for innovative collaborations and brand partnerships. Dynamic NFTs can also be used for cross-promotions, gamification, fashion, and music collaborations.
Integrating established brands into the web3 ecosystem is emerging as a notable trend. Gucci, Dolce & Gabbana, Tiffany, Wendy's, Nike, and Budweiser have all ventured into the NFT realm, sparking a wave of experimentation. The fashion brand Lacoste has recently launched a gamified NFT experience based around dynamic NFTs, which will automatically upgrade according to the holder’s achievements in-game. What these developments showcase is that right now, the potential of dynamic NFTs can metamorphose the landscape of brand engagement and consumer experiences in the digital space to bring yet more value to the consumers.
Tara Fung, co-founder of Co:Create, sheds light on this trend, ".....This adaptability paves the way for innovative brand collaborations and partnerships. Brands can launch interactive marketing campaigns where NFTs change in response to real-world events or create loyalty programs where tokens upgrade based on user engagement. ”
Contextually, Co:Create is a web3 community activation platform, facilitating API tools for brands to create and launch their own dynamic NFTs. The platform has notably partnered with Bleacher Report (B/R), a leading sports media brand from Warner Bros., to launch a sports fan loyalty program. As Fung describes their work: “Co:Create's API-first platform is designed to be a bridge between the evolving world of web3 technologies, including dynamic NFTs, and a brand's existing digital ecosystem.”
As the movement for complete digitisation of our lives gatherers steam, businesses and consumers increasingly seek greater control over digital interactions, driving demand for platforms and marketplaces catering to tailored experiences.
Dynamic NFTs play a major role here: “Big brands can harness dynamic NFTs to amplify customer engagement and loyalty in innovative ways. These NFTs, with their ability to evolve, offer personalised experiences tailored to user interactions and interests, fostering deeper connections. Brands can initiate interactive campaigns where NFTs adapt to real-world events, use them as evolving loyalty rewards, provide exclusive access to events, or even employ them for progressive storytelling, revealing brand narratives over time.”
As the Web3 and NFT narrative unfolds in 2023, an era of innovation and collaboration dawns. Legacy brands converge with immersive gaming experiences, creative marketing strategies, and dynamic NFTs, heralding a new era of digital engagement and customer loyalty. The journey ahead promises to be marked by unparalleled growth and the continuous evolution of the digital frontier.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash