Do NFTs Offer a Bright Future for Brands?

Non-fungible tokens (NFTs) appeared on the market in 2017, but became widely known by the general public in 2021, and are increasingly attractive to the world of marketing. whatever GucciAnd the Givenchy or AdidasThe efforts of major brands to enter the cryptocurrency market prove that NFTs represent a “new vehicle for brand expression, which must be incorporated into the communications mix.” At least that’s the opinion of a branding expert, Matthew Sakaswhich explains “that in terms of TrademarksNFTs can be seen as a new way to advertise and promote a product, or as a new way to interact with consumers, by providing an innovative user experience. They can also facilitate the development of new products, by focusing on instilling them into the digital everyday life of their audience or suggesting endorsement of branded content.”

Interested in a brand thanks to NFTs? maybe.
On its website, the French platform for releasing NFTs for the fashion sector aryani He invites brands to consider digital market opportunities: “The immersive world, or metaverse, provides diverse opportunities for forward-thinking brands. NFTs are becoming the solution to a seamless customer experience across all channels.” What makes the NFT valuable is the uniqueness of each symbol and we must understand that everything is traceable in this digital universe: the original is engraved and recorded in blockchain And NFTs are maximum protected from fraud and forgery. What does this mean for luxury brands? There is no need to worry about a counterfeit alternative market, and brands can now market digital assets in entirely new ways. It’s one opportunity, of course, but it comes with other advantages, especially for brands looking to position themselves in a system where scarcity is synonymous with luxury. Attribution of the source of NFTs can help add value to products and give more benefits to copyright and trademark.

The advantages of brand revitalization in the world of NFTs are quite clear. However, we must remain on guard, the agency’s director general warns us red dragonAnd the Matthew Sakassince “Brands should not use NFTs for the sake of principle or to arrange themselves, they must demonstrate that they understand and know how to fit the tokens that govern this universe.”

If the opportunities are interesting, it remains that this sector is risky from a legal point of view.

Can certain risks be avoided? Yes, but be careful.
about this question, Frederic LetinderLawyer and Strategist yolksclearly indicates that NFT legislation is currently unregulated: “So we don’t know what the legislator’s intentions are with regard to this matter. Moreover, since NFTs have only gained popularity in the past year, the courts have not had the opportunity to judge the potential problems that could be arise from transactions related to NFTs or business creation intended to be converted into non-fungible tokens.” Thus, Frederic Letinder It reminds us that “the laws of the real world apply in the virtual world” and that we must make “necessary adjustments.” However, it must be kept in mind that the format of NFTs complicates the path between the distribution of the work and its creation: “The mere creation of an NFT does not attribute ownership of the work (photo, illustration, song, etc..) to the person who created the NFT.”

in contrast, Frederic Letinder He points out that caution is required in this sector that is gaining popularity: “Due to the fact that it is inevitable, for any marketing agency, that NFTs become a very interesting avenue in order to diversify their services, advice that can be given should be given that caution is required on several levels. Indeed The brand must:

  • Verify with regulatory agencies whether the platform to be exchanged complies with applicable laws and regulations;
  • Verify that the person selling the NFT (advertiser or customer) owns the rights to the business;
  • Ensure that what is being sold through the token is communicated by creating a clear sales contract. Since selling an NFT is different from selling a physical work, it would be prudent to outline the different rights that the parties involved give to the owner of the NFT;
  • Verify the identity of the people the brand deals with, as well as the legitimacy of the transaction.

Finally, all of this advice stems from the risks inherent in cryptocurrencies in general.”

Are NFTs the new close link between individuals and brands? Can.
Only time will tell but many professionals agree to praise NFT as a renewed carrier of communication with its clients. Brands that have embarked on NFTs can be trusted by partnering with a cause (Givenchy And the cause of LGBTQ +) or very exclusive collaborations with artists such as the champagne brand champagne who is associated with lady gaga. same A kind of American beer She took advantage of the NFTs to launch an artistic “Heritage” collection that highlights all shapes of her bottles. Either way, the fact remains that NFTs offer new ways for the brand to express its impact, but also to reveal its boldness by innovating in a new sector where it all needs to be done.

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