According to Binance, In the month of August, the global market NFT sales tumbled below $1 billion. Despite soaring projects, August was the third month to record NFT sales less than $1 billion sales. This is primarily due to a massive drop in the number of unique NFT buyers and the average sale value of the top 10 NFTs. However, it is important to note that the August numbers show a 12% increase from July 2022 numbers. Interestingly, some of this growth can be attributed to the upcoming trend of Phygital NFT Marketplace which is being embraced by brands as a great marketing move.
Term phygital is a combination of two words Physical and Digital. So a Phygital NFT is a digital token that is actually backed by a physical item. In 2021, we saw Tacobell use phygital NFTs to market their brand in a Phygital NFT Marketplace and beyond. Taco Bell minted and sold 25 taco-themed NFTs priced at $1.79 (0.001 ETH). The NFTs sold out within half and hour of launch and the NFT buyers received free Taco Bell for one year. Within a year one of these Taco Bell NFTs sold for over $180K.
In simple words a phygital NFT must:
Lately we have witnessed a surge in the demand of Phygital NFT Marketplace development. With NFTs the excitement was not about that it gives us physical things but it gave us a digital experience of things. However, there are people, users and brands who always questioned the need of this digital ownership experience. For such brands phygital NFTs is a perfect opportunity of going digital and enhance the brand image and value positively.
left a bigger impact on brands than anything else. We witnessed most of the brands move online. With so many new online brands, the consumer were confused and it trusting a business became a matter of big concern. It was the time when building consumer trust in digital space was the top most priority for all brands.
Business entities are now exploring phygital NFTs to make valuable information of their products available to the consumer. The product data can be about where the material was sourced from, the manufacturing process and how the shipment was handled. All this product information is stored on blockchain that acts like an immutable database and the NFT acts as certificate of quality and trust.
Also with Phygital NFT Marketplace development, brands can immediately deliver the digital asset to the owner unlike the physical product that can’t be delivered so quickly.
It is observed that the global counterfeit goods industry is growing exponentially and affecting international trade adversely. The counterfiet products are killing brand image’s online. Anyone imitating a product of high-value luxury brand with limited edition would earn huge profits, but spoil the reputation of the original one.
Brands have been using certificate of authenticity since years but these can also be easily counterfieted. An NFT gives the physical products a certificate of authenticity that cannot be tampered with. As the information is stored on public blockchains, the brands can easily use it for maintaining the proof of authenticity to prevent any kind of frauds.
At present physical and digital worlds are competing against each other. For example social media platforms are competing against physical meet ups. Phygital NFTs make the two work together rather than competing against each other. However, this is where brands need to use phygital NFTs very cleverly.
For example in event ticketing we saw a major pentration of NFTs being used as tickets to prevent scalping and fraud. Thus an NFT like this is a phygital product as it is used both as digital asset and as a physical product experience. This is programmable benefit that the brands can use and offer to its consumers.
Are you a brand owner who wants to hit ground with phygital NFTs. Contact Antier to learn more about how phygital NFTs or phygital NFTs marketplace solutions can help your business.
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