Why Are Big Companies Adopting NFTs?
NFTs are now on a crazy trajectory that looks to be traveling "to the moon," as they frequently remark, despite the fact that investing in digital anything could sound bizarre. Some people may ask what are the real reasons for buying NFTs and why they have become so popular among ordinary people and big companies. In August 2021, an investor paid $1.3 million for a digital photograph of a rock. Taco Bell, Pizza Hut, and Pringles are just a few of the large brands getting in on the action by launching their own NFTs. In 2021, Visa paid $150,000 for an NFT, while Adidas paid another $156,000 for a digital piece of art in the same year.
So why do companies decide to put their millions into digital arts that cannot be owned physically and what are the advantages of investing in NFTs? Let’s discuss it in more detail.
Businesses Want to Increase their Earnings
When it comes to investing in and owning NFTs there are many big companies that are worth taking into account. Nike is among the big companies that own NFTs. Nike is a household name when it comes to athletic footwear and gear, and the company has begun using NFTs to guarantee the authenticity of its footwear. It should be noted that Cryptokick is the term given to a new project by the company that allows you to download a digital version of the product when you buy a pair of the brand's sneakers.
Adding a digital sign of validity to the token's physical counterpart takes this to the next level, given the subculture of collecting, trading, and reselling shoes. Because of that Nike has made a campaign that attracted more youngsters that are involved in digital investments. As a digital collectible attached to a real object that can be utilized for video game characters or online sneaker forums – demonstrating that digital fashion is another usage for NFTs beyond the more "traditional" aesthetic use – this method is genuinely unique for NFTs.
The NFT campaign launched by Team GB after the extremely unusual Olympic Games is one of the examples of how big companies own NFTs. Various limited-edition collectibles, such as wall paintings by artist Ben Mosley or unique experiences with some of the gold-medal winners of Team GB, were available for purchase with NFTs via the British Olympic Committee. To honor the accomplishments of the athletes and raise money for the British Olympic Association, it was an excellent idea to allow supporters to aid their national team even if they couldn't physically get to the stadiums.
While Pizza Hut, KFC, and Taco Bell are well-known brands, Yum Brands (the parent business of Yum Brands) has also developed an approach to dealing with NFTs. When Taco Bell released a series of non-stop taco gifs in February 2021, they sold out in just 30 minutes on the specialist digital marketplace Rarible. As a result of the campaign, Taco Bell was able to generate $1,500 for a scholarship program it is affiliated with, proving that NFTs are not just effective for expensive artworks worth hundreds of thousands of dollars.
Apart from the above-mentioned companies, there are still some big brands that do own NFTs. Some examples of this are Visa, Adidas, and several others. Apart from them, eBay is comparatively new in this “challenge”. The multi-chain NFT marketplace OneOf recently has revealed in a press release that it has partnered with the global e-commerce behemoth eBay to offer its first NFT collection. The "Genesis" series will showcase animated 3D reconstructions of famous sportsmen from Sports Illustrated, one of America's most recognized sports publications.
On eBay, the first batch of the NFT collection is now for sale. Wayne Gretzky's Sports Illustrated covers are shown in this animated version of the magazine. To be on the cover of Sports Illustrated forty years ago meant so much to Wayne Gretzky, who described it in a press statement as an "honor" to be included in the collection once again. Limited-edition NFT packs will be available for sale on eBay beginning at $10 for the first time under the company's four-tiered system of rarities.
As we’ve seen there are some big companies that own NFTs and start new campaigns based on the digital assets and investments; let’s find what are the main reasons behind this and why those companies really want to invest in or own NFTs.
Is NFT the Future or something?
When it comes to the reasons why big companies are into NFTs, one of the main things is that big companies in order to attract more customers try to follow the global trends. It's no surprise that retailers followed their consumers to shopping centers. As e-commerce became more popular, companies followed suit. Because people are increasingly flocking toward Web 3.0, digitally native firms are becoming more credible. The NFT hype cycle is already well underway, and consumers should be prepared. At some time the market for regular NFT paintings will dramatically decrease.
Like dot com at some point has shown that it was just a bubble, NFTs will be like that in the near or longer future. However, the main and key thing here is that our world is becoming more and more digitized. Major and leading companies are investing money in NFTs because the future is digitized. The number of individuals who regularly spend many hours a day in virtual worlds will continue to rise. This is the ultimate reason why businesses have already begun marketing in the metaverse. Many well-known musicians, including Justin Bieber, Travis Scott, the Weeknd, and Ariana Grande, have previously performed in the Metaverse. Perhaps high-end fashion houses will follow and stage fashion events in the metaverse. As a result, the options are unlimited, and this is why companies are paying so much.