Why 144-year-old brands are launching NFTs

In late November, Budweiser popped open a cold one and took a foamy gulp of crypto, changing its Twitter name to beer.eth and launching an NFT (non-fungible token) project of 1,936 unique digital cans that sold out in minutes. The collection, which included items sold at $499 and $999, immediately soared in price on the secondary market. On OpenSea, the world’s largest NFT marketplace, the cheapest resales went for upwards of .5 ethereum ($2,200) and rarer cans for more than $20,000.

To support its NFT launch, Budweiser has also adopted the conventions of Web3, a catch-all term encompassing innovation being built on blockchain technology. Its Twitter account traded memes with crypto-influencers, it established a Discord community, and it pledged to holders of its NFTs that each “will act as an entry key to the Budverse, unlocking exclusive benefits, rewards, and surprises for…NFT holders.”

This is just the latest sign of Corporate America’s experimentation with crypto and its willingness to invest significant branding resources in those efforts.

What other companies are getting into NFTs?

The announcements have come fast and furious from corporate giants across a variety of sectors.

But why now?

1. The desire to get in early on a potentially massive technological paradigm shift. Many established companies of the last two decades were slow to take advantage of the internet and mobile technology, and they ended up losing significant market share to digitally native upstarts. By dipping their toes in early, big brands are hoping to be in a better position if crypto does turn out to be fundamental to the next wave of internet innovation.

2. The brand-building and marketing opportunities. Crypto-native companies and influencers have tapped into the mimetic and fast-moving qualities of internet culture to build huge followings on social platforms, and brands see an opportunity to appeal to a new generation of consumers steeped in that world. By partnering with successful Web3 creators and establishing their crypto bonafides, legacy brands are attempting to position themselves as trendy innovators, even when their businesses remain focused on selling physical products and providing services in the “real” world. There is a delicate line to walk, though, since inauthentic-seeming launches are getting panned by the crypto community.

Big picture: These early steps into crypto by established corporations are clearly experiments to see what works and resonates with consumers, and there is no doubt that many will be chalked up as failures.

However, as interest and participation in crypto-based technologies continue to pick up steam around the world, expect more brands to launch new projects to snag mindshare in this new market. As White Castle would say, it’s probably nothing.—MB