The term NFT is something you have probably heard in the media, from a friend, family member, or colleague. But what is an NFT, and what is their value? An NFT, or Non-Fungible Token, is essentially a digital collectible – think an image, video, audio file, or any other digital asset.
You might be thinking, so what? Digital assets have long existed, but one of the unique features of an NFT is that its contents are stored on the blockchain, which is known for security and exclusivity. NFTs are treated in the same vein as a rare piece of art or auction item, versus something that is mass-produced that anyone could and would purchase easily.
Over the past few years, NFTs have gained momentum and have, arguably, become mainstream. Can they add value to an event or association? Absolutely – but the value for the end-user must be kept in mind. Just like any trend or new technology, incorporating it into your event must have purpose and make sense within context. Below we share examples of how NFTs can be effectively integrated into events and associations.
Giving an NFT to every event attendee would be something different and creative, but where is the scarcity or exclusivity in that? It goes back to the concept of supply and demand. The scarcer the commodity, the more valuable it becomes. Consider for example if a concert for a huge international name held a contest and only 10 VIP winners received exclusive NFTs as tickets. Those NFT tickets could have the ability to connect the holders to other prestigious prizes, while the other 18,000+ attendees had regular tickets. The NFTs could provide access to the event but also become something collectible and potentially provide access to additional unique experiences onsite or post-event. The tangible and intangible offerings from the NFT before, during, and after not only open exclusive opportunities, but if the physical NFT is rare, its value could increase exponentially down the road.
This concept of using NFTs is already upon us. VeeCon 2022, from May 19th to 22nd at U.S. Bank Stadium in Minneapolis, was the first NFT-ticketed conference. Tickets were not open to the public and individuals had to own a VeeFriend NFT to attend.
In 2021, Toronto Raptors fans were also given the opportunity to purchase Raptors-related NFTs. Titled the “Toronto Raptors 6ix Keys,” the collection contained digital artworks in the form of keys, each unlocking certain perks depending on the scarcity of the key. The rarer the key, the more benefits it unlocked. Perks for fans included exclusive access, VIP experiences, and signed memorabilia.
NFTs also offer a community-building opportunity perfect for associations. For the 55th annual CMA Awards Show in November, the Country Music Association launched 1000 NFTs, moderately priced at $25 each. Each piece of digital artwork included exclusive benefits such as access to a digital community and special CMA events.
Furthermore, NFTs can be leveraged by associations though token gating. Members can collect tokens or NFTs by participating and engaging in the community, and only these token-owning members gain access to association events.
NFTs are currently in their infancy and can be considered the first wave of new technology that will be transformed in the future. The opportunity to leverage NFTs is seemingly limitless.
In Spring 2021, Redstone produced an event that included the creation of a one-of-a-kind NFT, created by renowned DC and Marvel artist, Rob Prior. The live virtual event featured Prior hand painting the artwork, unveiling it digitally, and burning the original so it exclusively lived on the blockchain.
We are continuously adapting to the ever-changing digital landscape and look forward to experimenting with NFTs and helping our clients do the same. Contact us today to discuss all things NFTs and events!