NFTs (Non-Fungible Tokens) as a customer loyalty and crowdfunding tool

As technology advances, people and companies adapt to changes by making use of the benefits of technological innovations to improve their economy. The internet, the rise and adoption of cryptocurrencies by many citizens with the encouragement or optimism of participating in an economy without the intervention of governments and traditional banking entities, with decentralized finance systems (DeFi), has opened up new ways of financing projects and generating value for clients through Non-Fungible Tokens (NFT), something explained by a scholar on the subject.

Alex Cabello Leiva, known as AlexCocoPro, engineer, multidisciplinary NFT artist and NFT project advisor, is an active member of the Venezuela NFT community, he shares with us how we can use NFTs as a customer loyalty and crowdfunding tool.

How can a company finance a project through NFTs?

Crowdfunding as a collaborative project financing mechanism has reached the necessary maturity to support ambitious projects. Blockchain technology has given it strength through smart contracts and the immutable record of transactions, which allows collaborators to audit the way their resources are used, thereby increasing trust.

With NFTs, companies can offer a limited collection of works of art, which may have utility beyond artistic value. Among the benefits that are usually offered in many NFTs collections are being a member of a community, being a shareholder in a decentralized project, obtaining discounts on products and services, obtaining a percentage of profits from project sales, having voting power in decisions project and get special access to project elements, which are unlocked thanks to the traceability and verification of your NFT digital asset, Alex Cabello points out in his conversation.

Many creative people are financing their initiatives thanks to the sale of digital assets by proposing a route map (route map) or a white paper (white paper) where they specify the details of each project, in what the money will be used and what benefits the users will obtain. collectors. NFTs can perform a function similar to selling shares on the stock market, adds the interviewee.

How can a company build customer loyalty through NFTs?

The traceability of NFTs as digital assets is very useful since the authenticity and owner of an asset can be certified, which is not only useful for artists, but also for companies when interacting with their consumers and give them special benefits.

“Any company can launch an NFT collection, which can be put up for sale or awarded to its most loyal consumers to reward their preference. An NFT can be a virtual capacity seat within the company, with which they can make their consumers participate in decisions, news, incentives or privileges, there are many possibilities”.

Collectors can sell their NFT at any time, transferring the proceeds to someone else. In other words, the NFT can be destroyed (by sending it to a null digital wallet), it can be sold, but it cannot be counterfeited or copied, says Cabello.

Despite these benefits, it is a relatively new technology that has been adopted mainly by companies related to cryptocurrencies, however, day by day other companies of various types and vocations are added, which are beginning to use NFTs with a vision of marketing.

– That is, are NFTs being used for dual purposes?

“I would say with multiple purposes. I know startups that have released their NFT collection to publicize their art or style, finance their projects, do loyalty marketing and reach the growing niche of those who have adopted blockchain technology, who sometimes find it difficult to spend their money. digital. There are brands that have turned the holders of their NFTs into true evangelists of their brand and even into exclusive communities as a kind of membership to a club”.

Social responsibility and altruism

In addition, there are projects that use part of the profits obtained from the sale of NFTs for social responsibility and altruism, giving investors great satisfaction for their humanistic value as a taxpayer. For example, many Ukrainian artists are selling their NFT works to finance humanitarian aid such as food, education, medicine, and even medical care for the civilian victims of Russia’s cruel invasion of their country.

In conclusion, for Alex Cabello Leiva, the advancement of technology generates changes at all levels and blockchain technology has allowed the creation of new strategies and actions for the decentralization of power, the growth of companies, and the diversification of citizens’ income. , retain customers and increase visibility.

Taken from El Sumario

Image courtesy Cointelgraph