Digital currencies are the new hype. To be more particular, the world is investing in Cryptocurrency, as they have successfully entered the public conversation and continue to smash the headlines.
Thanks to the billion-dollar entrepreneurs, who are investing heavily in crypto, the popularity of digital currency has surged once again. Amidst all these, can branding your own crypto be a wise idea?
Before that let’s look into a brief history of cryptocurrency.
It All Started with Bitcoin
The birth of cryptocurrency dates back to 2008, when a whitepaper was published outlining bitcoin and blockchain. The whitepaper was authored by one or more individuals under the pseudonym Satoshi Nakamoto, the real identity of whom is a mystery to date. Thus, bitcoin became the first known cryptocurrency, along with came the concept of blockchain technology.
The creation of bitcoin couldn’t be more perfect than following the financial crisis of 2008. The use of bitcoin was simple for the transacting parties and required no intervention from any third party. Thus, cryptocurrency earned the trust and support of people, and investors are all out to deal with bitcoins once again.
The Influx of NFTs
Non-fungible tokens, known as NFT are the newest trend on the Ethereum Blockchain, the second largest cryptocurrency by market capitalization after bitcoin. Faking up commodities is not a new practice, and by doing so, people can actually earn in millions. But that is not possible with NFT – trading card that cannot be replaced by something else. Even bitcoins can be replaced – you give up one and get the exact same thing.
Recently Taco Bell had put up a collection of NFTs on the Rarible marketplace, that got sold within minutes with highest bids reaching 1.5 WETH. Several other brands have also entered the bandwagon seeing the potential of the digital assets.
The influx of NFT is a good call that marketers should heed. These NFTs can be used as personalized gifts and vouchers, that might increase user engagement. Also, the consumers are saved from the risk of fraud and the collectibles can be enjoyed in anonymity.
The first quarter of 2021 witnessed a sale of more than $2 billion of NFT, with twice as many buyers as sellers, as stated by the report from NonFungible.com. More importantly, famous brands like Nike and Louis Vuitton have also started creating and trading their own NFTs.
Moreover, since there is no room for intervention by a third party, the consumers will not have to face the fear of their commodities being taken away. Plus, for consumers who prefer transactions through new methods, this can be the best approach. Also, accepting cryptocurrencies will attract new customers and drive sales.
Only a certain portion of luxury consumers use cryptocurrencies. Luxury brand marketers cannot entirely ignore this. The luxury watchmaker Hublot sold their limited-edition Big Bang Meca-10 P2P, exclusively via bitcoin. The launch enticed the luxury fashion enthusiasts and all the 210 pieces got sold.
Using your own crypto can also boost brand loyalty. For example, the American band Kings of Leon released their latest album When you see yourself in the form of NFT bearing special perks like a special album package, front row seats in live shows, and audio-visual art.
Cryptocurrencies can also be used as a reward to fan communities and niche enthusiasts. The UK Fintech giant Plutus partnered with famous brands including Nike, Lenovo and Vodafone, and used crypto to reward their customers. The consumer pays with their Visa Plutus debit card and earns 3% back in the company’s native crypto rewards token – Pluton.
Digital currency can change the future of transactions. Seeing how companies like Microsoft and PayPal have already adopted bitcoins, cryptocurrency has a lot more potential than you can think of. Thus, branding your crypto can be a wise option. Now that you are convinced you might want to jump in. But before that, here are some recommendations that you should take into account.
- Amateur knowledge might lead you to pitfall. Having an expert in the development team who has sufficient knowledge and working on blockchain technology and digital currency operations is encouraged.
- Decide the unique features you might want to add to your blockchain.
- The end-user must receive valuable output. Think about what benefits you can offer to your consumers, such as convenience, rewards, security, etc.
- You should also look into the security before offering it to your audience. You might want to hire a friendly hacker to find out any weak points.
The cryptocurrency craze can be thrilling and exciting for the younger generation, but not all consumers are amazed by the technology. however, it might only be a matter of time for the technology to become mainstream and lead the global transactions. With more brands and creators joining the club, the option of branding your own crypto is an exciting opportunity to stand out from the crowd.
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