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Dec 30

Crypto Marketing with Non Fungible Tokens NFT

More importantly, this quick community formation results in the instant construction of a database of self-organized and paid early adopters willing to interact with your business.

I am awestruck by the possibilities of NFT and the WEB3.0 concept as a whole. I'll be sharing my increasing understanding of their disruptive potential across industries in a series of quick postings.

In this essay, I will discuss the new subject of Crypto-Marketing and how it is reshaping paradigms and compelling us to rethink some of our basic assumptions. Your suggestions and corrections will be much appreciated.

The first fundamental shift in cryptocurrency marketing
Visa purchased an NFT, a link to a 25X25 pixel CryptoPunk 7610, for marketing reasons on August 23rd, 2021. They paid 49,5 ETH, which was worth $150k at the time.

This audacious move proved to be a huge success; the attention generated far outweighed the expenditure. Visa established a new authentic channel of communication with consumers through Crypto/NFT Communities. (Global crypto ownership rates are predicted to be on average 3.9 percent, with over 300 million crypto users in 2021).

The campaign demonstrated the development of NFT use and established Visa as an early adopter of cryptocurrency marketing. Adidas would shortly thereafter acquire a Crypto Ape.

Visa acquired it for 49,5 ETH, or around $150k at the time. The price dropped to 127 EHT in less than a week. Marketing has historically been a cost center; the money spent on promotion is a sunk expense. This campaign became a balance sheet asset, and marketing evolved into a profit center.

The second paradigm shift in Crypto Marketing with Non Fungible Tokens NFT

Imagine Apple wishes to market a new iPhone and so distributes 1.000.000 APPLE VIP NFTs for promotional purposes, either for free or at a nominal cost.

Anyone who obtains (or pays for) those NFTs receives some benefit (discount, priority access, signaling you belong to an exclusive community... ).

That is instant community formation without the need to sell these NFTs, as the NFTs themselves have built-in mechanisms for spreading. Holders of those NFTs have an incentive to boost their perceived value in primary and secondary markets...). The concept of secondary markets for large-scale marketing is extremely appealing to collections.

More importantly, this quick community formation results in the instant construction of a database of self-organized and paid early adopters willing to interact with your business.

Bear in mind that any transaction made with your wallet to purchase an  Apple iPhone NFT VIP Wallet will be public. Apple will be aware of all holders and will be able to access and deliver information to them.

Anyone can access my wallet and see the public record of my transactions, and they can use this information to profile the holder and send spam (Crypto Spam). Rather than emails or banner advertisements, there is a new high-precision, low-cost avenue for communicating with potential customers: your public key.

Unlike email, public keys are visible and accessible to the public. You can send an unsolicited NFT to any wallet, and it will appear as a billboard advertisement.

This is only the start.

Disclaimer: The views expressed here are those of the author and do not necessarily reflect those of OpenExO Inc., its members, affiliates, or allies. The content is provided for informative purposes only and is not intended to provide legal, business, investment, or tax advice. Regarding those matters, you should consult directly with your own appropriate advisors and professionals.


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