NFT Market Cools as Big Brands Use Digital Collectibles for Marketing
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Two years ago, NFTs were red hot as art collectors pushed values to $27 billion; now the market has crashed and a more modest version is being used as a marketing tool.
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Companies like Nike, Coca-Cola, and Starbucks are incorporating NFTs into products, loyalty programs, and other marketing efforts to appeal to existing fans and attract new ones.
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While generating revenue is still a challenge, NFTs can serve as "public trophy cases" and keep users engaged with brands.
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Sneaker companies have found particular success with NFT drops that combine digital and physical components to appeal to collectors.
-Marketing uses are still experimental and secondary trading seems unimportant; the goal is to employ NFTs as "souvenirs" rather than financial assets.