Non-fungible tokens (NFTs) represent a golden opportunity for organisations looking to take back control of their brands and grow their online communities, according to Ali Sajwani, Chief Executive Officer of D-Labs and General Manager – Operations at UAE-headquartered DAMAC Properties.
The unique tokens that allow digital citizens to invest via the blockchain frequently take the form of unique artworks, providing buyers with undeniable ownership. According to Nonfungible.com’s analysis, NFT trading will reach $17.6 billion in 2021, with sellers profiting $5.4 billion – a year-on-year increase of approximately 21,000 percent.
CryptoBear Watch Club is an NFT social club for watch collectors new to the hobby, as well as luxury connoisseurs and NFT enthusiasts. It is the first metaphysical luxury watch community with real-world utilities, founded in Dubai by a group of blue-chip investors. This luxury watch social club unlocks new rewards for NFTs, allowing holders to exchange utility tokens for physical luxury watches.
“I’m seeing a trend where savvy brands are thinking outside the box and realising that NFTs can help create digital communities,” he explained. “These tokens are making it easier for companies of all types and sizes to build loyal fanbases, which are eager to interact with the organisations and invest in limited edition items, such as product images and collectibles.”
Sajwani cites entrepreneurs such as Gary Vaynerchuk, the internet sensation behind VeeFriends. Users of Vaynerchuk’s platform can trade NFTs and earn the right to attend annual community conferences for the first three years.
Sajwani will lead DAMAC’s D-Labs, a US $100 million investment that will immerse the Group in the world of metaverse. The move is part of DAMAC’s organization-wide digitisation ambitions, through which it hopes to broaden its services to meet the needs of the entire Group when it comes to digital assets, such as virtual homes, digital property, digital wearables, and digital jewelry.
Other corporations leveraging the power of NFTs include global sportswear giant Nike, which launched CryptoKicks in April 2022 in collaboration with
RTFKT Studios. The project, which connects digital shoes to their physical counterparts, allows collectors to acquire both physical sneakers and digital replicas for their metaverse avatars. In addition, investors gain access to exclusive online sneaker forums.
“NFTs create investor excitement through rarity,” said Sajwani. “Linking the physical and digital realms is still seen as a cutting-edge move for a company, and those that have already embraced these digital tokens are succeeding in creating stronger brand loyalty among communities in the metaverse.
“But an NFT’s value doesn’t just lie in the asset itself; it also relates to the additional benefits that buyers gain through ownership of the tokens, such as exclusive access to products, events, forums and services. This is where companies are really starting to build brand loyalty, generating a sense of community and exclusivity all at once.
As Web3 continues to expand, it’s vital for brands to inculcate a presence online beyond a conventional static website, Sajwani added. “We’ve seen forward-thinking companies do some amazing things on social media platforms, but it’s now time for them to step into the metaverse and interact with a new generation of consumers.
“In my opinion, NFTs represent an unprecedented opportunity for companies looking to develop loyalty, community and exclusivity. Brand culture will prove essential for business that wish to remain relevant over the longer term, and this is now intrinsically linked with life online,” he concluded.
