2201 - NFTs Report

2021 Notable
Branded NFTs
How Brands Showed up in the NFT space and the Strategies they Used
Branded NFT Intelligence Report 2022

Catherine D. Henry
Why this
2021: The Market for NFTs Skyrocketed
NFTs rose from a monthly sales volume of USD 400 million
in Jan 2021 to a market cap of over USD 17 billion. As a
Survey?
sector, NFTs represent a $27bn segment of the crypto
market. Currently, OpenSea, the largest NFT marketplace
accounts for more than 97% of the NFT market. According
to NonFungible, an NFT data resource, there are 40,000
traders in the secondary market versus under 25,000 in the
primary market.
Branded NFTs: No Two Campaigns were the Same

2021 was the year brands invested heavily in this space. We
identified a wide range of strategies to help marketers
appreciate the array of options. What we can say is that a
clear trend emerged: uility and real life experiences.
So what's the Secret Sauce?

We outline what they did differently. Whether it was a good
idea - or not- is up to you.
Catherine D. Henry: Branded NFT Intelligence Report 2022

NFT Sales Volume December NFT Sales Volume

2020 December 2021
$340 $23
million Billion
Total sales reached for the year Driven by major sports,
Active wallets grew by 97% over 2020 and
global brands and art
Total Value Grew 299% (BNP Paribas), Most NFT transactions this year were
marking blockhain-backed NFTs the core from retail buyers, (under $10k) but the
asset class for the new “virtual economy.” big volumes were driven by collectors

and institutions. (Chainanalysis 12/21)
2021Branded NFT
Survey
The Year Branded NFTs Took Center Stage
With notable branded NFTs launching weekly major companies joined the fray,
including Burberry, Nike, Adidas, Balenciaga and Coca-Cola.
Digital collectibles drawing on nostalgic iconography and momentos from these

storied, global brands saw the NFT space explode. Trading volume hit $23B for
the first time and the Top 100 NFT Collection floor market cap reached USD
$16.7B. But what the catalyst for this growth?
The following pages explore the drivers that led to a landslide of new branded
NFTs. We will also explore each launch in detail, followed by a selection of
popular marketplaces in 2021 - and an outlook for 2022.
Branded NFTs
How it Started
01 How it Started: Early in 2021, marketers seized the opportunity to
capitalize on the burgeoning interest in gaming by Millennials Gen
Z across platforms like Fortnite that grew popular during 2020.
How it's Going Brands like Balenciaga seized the opportunity to grow their online
presence in gaming spaces. The craze for NFTs was set off by
Christie's Beeple sale, followed by experimental NFT isssues by
Gucci and Dolce-Gabbana.
02 Why Now: With record sales of cultural icons, brands sought to

leverage nostalgia for classic brand icons, selling their "Treasures
in the Attic" leveraging popular brand assets while others
partnered with artists or cult figures(?). Collections such as Adidas
Bored Ape Yacht Club and Matrix avatars turned digital images into
serious investment assets.
03 How its Going: Significant trends have emerged showing brands

leveraging digital assets with real-world benefits (Virtual +In real
Life (VIRL) solutions) to maximise the digital/physical properties of
the Metaverse. We call this the "Secret Sauce".
In 2020, gaming quickly emerged as one of the most popular

activities; brands sought to capitalize on the sale of digital
assets.
Gaming
Brands took notice as digital games spending grew 12% year-
over-year in 2020, reaching $127 billion across mobile, PC, and
The Virtual Market Drives Brands to console.
Gaming & NFT's 2020-2021
Almost 2/3 (62% ) of Gucci’s sales in 2018 were attributed to buyers under-35 making
this a prime audience to engage with, both for short term sales and long term loyalty. In
2021, gaming increased its share as a social platform, with 4 billion active gamers
worldwide. And now fashion brands have the chance to get involved, with clothing
becoming an increasingly popular feature in games. in 2020 Gucci sold a digital
Dionysus bag in Roblox for over $4,000. Louis Vuitton partnered with League of
Legends in 2019, and Balenciaga similarly established a collaboration with Fortnite.
The narrative of gamers being young, tech-savvy males has shifted; gamers are now a
more diversified audience. By year-end 2021 there were 178 million monthly gamers in
the US - or more than half of the US population. 65% of the hardcore gamers were ages
18 to 45 (Gen Z, Millennial).
70% of Gen Z expect to use games socially, to hang out without playing the main game
(vs 37% for Millennials). 81% of Gen Z play games and 77% of those via mobile.
(NewZoo).
In 2025, loot boxes are projected to generate 20.3 billion U.S. dollars in annual
Digital Fashion seen as "biggest opportunity" by brand revenues, up from an estimated 15 billion U.S. dollars in 2020. (Statista). On average,
execs, according to McKinsey BoF report 2021. gamers spend about $25/month in-game. DMarket estimates the skin (clothes, avatars
& accessories) market to be $40 billion a year.
Gaming Gear
Virtual items become real business
Louis Vuitton committed early to the gaming world as one of the

first brands to initiate an in-game branded virtual assetsin the
industry. The company partnered with the League of Legends
franchise in 2019 to design some of the game’s characters’
clothing and later collaborated with Fortnite.
In 2021 UNIQLO created a collection for Animal Crossing and

later penned a deal with Riot Games' League of Legends.
Burberry has its own game app called B Surf, and established a
partnership with Mythical Games Blanko's for in-game clothing as
NFTs.
While this is an obvious play for retail brands, the Metaverse

offers ample opportunity for all brands.
Advertising Imitates Art
Full Video: Beeple Brings NFTs Into The Physical World
From Warhol for Absolut and beyond, art has long been a conduit connecting brands and target audiences. Starting with Beeple's record NFT sale at
Christie's auction house in March 2021, that was a wake-up call to marketers signalling a powerful way to raise brand awareness and new revenue
streams. Gucci lauched project Aria in June 2021 for charity (a low-entry barrier to test the waters) alongside noteworthy artists including: Nam June
Paik, Coin Artist and Joshua Davis. Claudia Hart, Lethabo Huma, Kesk, Tamiko Thiel and Jenny Holzer. Dolce Gabbana's "Alta Moda" live, 5-day
extravaganza in Venice brought fine art influences and fashion together in live shows that culminated in NFT sales following the event which offers the
owner multiple real life and virtual benefits (see Branded NFT section for details).
2021 Notable
Branded NFT's
How Brands Showed up in the NFT space and the Strategies they Used
Mattel
Hot Wheels NFT Garage™ - Series is imminently
collectible
WHAT: Hot Wheels® fans get a new way to add to their collection, in
partnership with The Worldwide Asset eXchange (WAX)
HOW: Release 40 new NFT Hot Wheels designs for fans and collectors
SECRET SAUCE: 5,000 rarities in this release, redeemable for real-life

special edition die-cast cars, as part of this vIRLs (virtual+In Real Life)
collection. Select tokens will unlock access to real-world Hot Wheels
products including the Twin Mill™, Rodger Dodger™, Mach Speeder™, SS
Camaro and the Bone Shaker™ which is the rarest of them all. Collectors
will have about a 5% chance of acquiring any of the special NFTs.
Charmin (yes, that one)

Because sometimes it's not about the NFT. It's
about marketing your tech culture.
WHAT: Charmin was a first-mover in the NFT

game, as early as March 2021, selling five pieces
of digital art on the Rarible platform. Prices ranged
from $500 to $2,100
HOW: Dubbed "NFTP" for "Non-Fungible Toilet
Paper." the works include decorated rolls of TP as
well as images of the brand's bear mascots.
SECRET SAUCE: Charmin ostensibly has no reason

to enter the NFT space. Which was the entire point. EXTRA: Charmin debuted a Bluetooth-enabled robot at CES that delivers toilet paper
The brand usesought to draw attention to itself, and straight to the bathroom when users run out. Charmin also has an app called
its tech prowess. (See section "Just because you can") "SitOrSquat" that helps locate public restrooms. Waze only takes you so far!
Taco Bell
With these gifs, Every Day can be Taco Tuesday
WHAT: A collection of gifs and images featuring

tacos. 25 tokens of five different NFTs, selling them in
collections of five.
HOW: Listed on the Rarible platform.Starting prices

were as low as 0.001 Ethereum (CCC:ETH), which is
roughly $1.79. Bids went as high as $700
SPECIAL SAUCE: The NFTs included a $500

electronic Taco Bell gift card for the original NFT
owner. Proceeds from the NFT sales will go to the
Taco Bell Foundation, its 501(c)(3) public charity.
Under Armor
Celebrates Stephen Curry's Legendary
Three Point Shot record - with a series of 3's
WHAT: Special edition 2974 NFT digital SECRET SAUCE: First "wearable" NFT
sneakers that commemorate Stephen across three Metaverses: Decentraland,
Curry's record of 2974 three point shots. Sandbox and Gem games (gemini).
HOW: Priced at $333 with proceeds Curry is a key ambassador for sportswear
benefitting charities focused on increasing brand Under Armor, so this partnership
youth access to sports. is an opportunity to promote the Genesis
Curry Flow sneaker line that the star
point guard reps on the court as part of
the Curry Brand banner.
Burger King
From Burgers to Bitcoin, these benefits are fit for a king!
WHAT: Burger King’s Keep It Real Meal boxes, from

now on, will have QR codes. Instead of physical toys,
they will deliver interactive brand experiences and
some virtual gifts including NFTs
HOW: Gifts range from three NFT collective tokens to

free whopper sandwiches for an entire year. Burger King
merchandise; one phone call from brand ambassadors
SPECIAL SAUCE: Campaign celebrities include Brazilian EXTRAS! In a co-branded activity with Robinhood, Burger King launched
singer Anita, rapper Nelly, or an "entrepreneur" from Royal Perks (ov 2021) members who spend $5 or more on the Burger King app,
the US (Elon, is that you??) website or in-restaurant using "My Code" (a code requested during checkout)
at participating locations will be rewarded with cryptocurrency. The primary
prize offered is Dogecoin, and a few lucky members could receive a full
Ehtereum or Bitcoin,
Coca-Cola
Rebirth of a Classsic
WHAT: A multi-sensory NFTs housed inside a Friendship Box (itself an NFT)

packaged as a loot box, a play on the popular video game feature involving
sealed “mystery boxes”
HOW: The winning bidder will also receive an in-real-life Coca-Cola refrigerator. Proceeds from the
auction will go to Special Olympics International
SPECIAL SAUCE: Four "Friendship Boxes"

1. A vintage Coca-Cola cooler as a dynamic loot box with motion and illumination enhancements,
including the “living light” vortex effect that visually connects all of the NFTs. The exterior is
decorated with symbols of friendship and sharing that will fade upon opening to reveal a vintage
Coke vending machine.
2. A Coca-Cola Bubble Jacket wearable. It includes an unlockable version that can be worn in
Decentraland.
3. The Sound Visualizer illustrates the instantly recognizable sonics of enjoying a Coca-Cola: from
the pop of the bottle opening to the sound of the drink being poured over ice.
4. The Friendship Card box: 1948 artwork used in a set of Coca-Cola trading cards from the
1990s symbolizing friendship and refreshment. The metaverse-influenced iteration of the cards
add motion, light and 3D features.
Dolce Gabbana
Collezione Genesi
WHAT: A group of nine NFTs was launched on luxury marketplace UNXD. The Doge
Crown example includes Physical version of The Doge Crown, including a corresponding
glass display case. Redemption window: 1 year as well as digital versions.
HOW: 4K rendered animation with 4K rendered stills and a custom digital recreation of
The Doge Crown in 1 open metaverse of choice. Redemption window: 2 years
SPECIAL SAUCE: Original signed sketch of The Doge Crown personally drawn and signed
by Domenico Dolce and Stefano Gabbana as well as
2-year access to Dolce & Gabbana Alta Moda, Alta Sartoria, and Alta Gioielleria
couture events in Italy
Private tour of Dolce & Gabbana atelier in Milan
2-week exhibition of The Doge Crown in Dolce & Gabbana flagship store in Milan with
collector’s name (October 2021) The "Doge Crown" is one of several NFT's issued by the brand
2-week exhibition of The Doge Crown in any Dolce & Gabbana store anywhere in the
world with collector’s name (to be coordinated with UNXD and Dolce & Gabbana)
Karl Lagerfeld
KLxENDLESS
Though the Fashion designer and icon has
passed, his legend - and his cat- live on! Real
life benefits include access and utility.
SECRET SAUCE: The more exclusive
WHAT: NFT series created in collaboration “KL7xEndless” version, sold at 777 euros and
with London-based street artist Endless, who available to only 7 consumers (the number 7 was
signed a mural of the late designer at Pitti Kalrl's lucky number), includes an invitation to
Uomo in 2019 an in-person cocktail event featuring a
performance by the artist. Slated for June 2022,
HOW: KLxEndless, will be priced at 100 euros it will take place at the fashion brand’s
in a run of 500. It will grant access to exclusive headquarters in the chic 7th arrondissement.
news bites and behind-the-scenes material as
well as live highlights of the artist’s
performance
Marvel Classics
Marvel Digital Collectibles are doing Mighty business!
WHAT: Marvel is issuing digital comic books based on its

assets. These digital collectibles feature some of Marvel's
most iconic Heroes. (e.g the Captain America series - see
video, right).
HOW: Each digital figure will have a different level of

rarity. Each comic book was available with five variant
covers in blind box format for $6.99 and this Marvel
Mightys drop, was sold in a Blind Box format for US $13.00
SPECIAL SAUCE: Fans buy and collect a variety of Marvel

NFTs; trade and hunt for rare (and even secret-rare) NFT
comic books and collectibles; and display their hard-earned
collection through fully customizable virtual showrooms.
click image for video
Louis Vuitton
As ever, the LV brand brings art and fashion forward
WHAT: A mobile game “Louis the Game,” made with digital artist
Beeple made to commemorate the company founder’s 200th birthday.
HOW: Players travel across different worlds to amass candles along

the journey. To our knowledge, the 30 in-game NFT collectibles are
not subject for sale.
SECRET SAUCE:
The 30 NFTs inside the game reached a value of $69.3 million.
Adidas x Bored Apes HOW: Adidas Originals co-created one digital

asset and put up 30,000 copies of the same item
for sale on Dec. 17. Despite technical issues, all
After a bumpy start, they sold +$23 million copies of the Phase 1 NFT have been sold.
and achieved 2nd highest rank for NFT sales
on OpenSea. This NFT is not a collector’s item but an access
token. It provides owners with exclusive access
to virtual wearables in Sandbox, and the ability
WHAT: A multi-pronged strategy to redeem corresponding physical products in
including limited-edition drops and 2022.
scarcity (NFTs grant access to physical
products); logos with profile pictures
(PFPs) of Bored Apes; and collaborations SPECIAL SAUCE: Owners of the NFT could also
with Bored Ape Yacht Club, Punks Comic, receive a physical version of the PUNKS Comic
and NFT collector gmoney Issue 2: X Marks the Drop, a graphic story about
all the characters in the collection. The comic is
The Adidas NFTs are available via a also available separately for purchase on PUNKS
"metaverse" destination on the Adidas Comic's OpenSea profile. PUNKS Comic's
website. developer team Pixel Vault reportedly took a
portion of the proceeds of the OpenSea sale and
put it back into the PUNKS community treasury.
BURBERRY Blankos
When what you see is what you get.
WHAT: An NFT that can be purchased, upgraded, and sold within the
Blankos Block Party marketplace
HOW: Unlock the brand for the gaming community by encouraging

players to interact with it in the Blankos game.
SPECIAL SAUCE: A limited- edition, limited-quantity Burberry Blanko

called Sharky-B. This is primarily a digital wearable with no
exceptional properties.
Clinique
"Meta Optimist" NFT Membership has real-life benefits - if you
promote the brand
WHAT: NFT as membership club and chance to
enter a competition for a chance to win products
for a decade.
HOW: They win by promoting the brand online

in exchange for free samples of Clinique
products. winners will be announced on social
media.
SPECIAL SAUCE: Loyalty First. This Membership

is the payoff for promoting the brand. Rewards
participants who craft successful brand campaigns
with one set of products yearly over 10 years.
NBA Top Shot

How this brand took an "all-in" bet on its own platform
WHAT: a blockchain-based single destination platform allowing
fans to buy, sell, and trade unique versions of officially licensed
video highlights. In a joint venture between the National Basketball
Association (NBA) and Dapper Labs in 2019 which launched in
2021.
HOW: Fans can collect unique, digitized "Moments" from pro
basketball. Moments are the video highlights of specific games and
more, including statistics, the player featured, etc. Users get to
know about a release by signing up for email notifications. The
packs are unique in nature, and once they’re sold they will not be
reissued.
Fans can collect and trade these digital cards just like old days:
each pack of Top Shot Moments contains a series of random cards.
There can also be theme-based cards, i.e. Christmas cards.
Over 95% of Top Shots were sold through the peer-to-peer (P2P)
method, in the first quarter of 2021.
SPECIAL SAUCE
Challenges: Challenges allow Top Shot Moments to be collected
and earned. A Challenge has a specific time period, within which
the participants have to collect a specific set of Moments. The
winner earns a bonus Moment.
Challenges:
Similar to many early day prototypes, NBA Top Shots experienced
significant technical issues, particularly for owners seeking to cash
out their cards, in some instances holding up to tens of thousands
of dollars in accounts, with the owner having no access to it.
In addition to the expense of hosting an own-brand platform, This

is one of the reasons independent brands may not wish to control
their own platform but rather be part of an established one.
Some pundits attribute NFTs appeal to brands to pursue their own

NFTs based on the bold vision of the NBA Top Shot strategy. Its
success will likely also be a harbinger for the industry.
The views!
Sports: Autograph NFTs

Better than sports cards or signatures, these NFTs offer
more; access.
WHAT: These cards and offers span a range of pro

athletes including Olypmic gymnast Simone Biles,
Baseball legend, shortstop Derek Jeter, and Olympic
sprinter Usain Bolt.
HOW: Iconic moments as video, signatures, linked

objects or stills -in sports also sold as NFTs.
SPECIAL SAUCE: (See Brady example) Each edition

includes Tom Brady's authentic signature, signed
individually and personally by Tom Brady. Holders will
be granted VIP access to our first Limited Edition Tom
Brady Drop and gain access to Autograph's private
community on Discord.
The Tom Brady Ruby Signed is an official Autograph Preseason Access Pass. .
WB Entertainment
The Matrix NFTs
WHAT: 500k waited, only a few lucky won. The

special twist? Their value unlocks over time.
HOW: November 30, 2021 The much-anticipated

Matrix drop saw all of the Avatars sold out after
500,000 waited in line for hours in anticipation of
the new Warner Brothers Matrix movie.
SPECIAL SAUCE: The NFTs feature “base”

avatars resembling ordinary people trapped in
the Matrix (picture left), followed by a second
phase beginning Dec. 16 in which owners of the
base avatars will be given a choice — to either
take a “Blue Pill” and have their avatar remain
locked in the Matrix, or take a “Red Pill” and
transform their avatars into resistance fighters
unplugged from the Matrix (picture right). All of the “Matrix” NFTs are created using Epic Games’ MetaHuman Creator tool.
They were sold on NFTY on Nov 30th, and sold out within an hour at $50 apiece.
Disney
So much treasure, they could start their own platform
WHAT: It all started, curiously, with Bart Simpson. Then
other "Golden" classics in the Disney catalogue. A list of
drops include golden NFTs from Star Wars, Pixar, Marvel,
and Disney brands. From fan favorites Iron Man, R2D2 and
C-3PO, Frozen‘s Elsa, WALL-E, the Pizza Planet truck from
Toy Story to Mickey Mouse’s sorcerer hat from Fantasia.
Each golden moment costs $60
click image for video
HOW: "Blind Boxes" or random collectibles can be purchased but SPECIAL SAUCE: these are the first official Simpsons NFTs, but not the
collectors won’t know which was acquired until after the purchase first time characters from the animated show have appeared in NFT
and can be traded on the secondary market. A 6% licensor fee will form. The most notable is the Homer Pepe NFT, which sold in March
be applied to Disney sales in the secondary market in addition to for 205 ETH, or about $320,000 at the time. All 18,666 Simpsons
the existing VeVe 2.5% secondary market fee. collectibles sold out.
.
Ferrari: coming in 2022!

The brand will launch its first collection of NFT's
WHAT: A multi-year contract as part of a new

partnership between Italian sports-car manufacturer
Ferrari and the Swiss NFT marketplace owner Velas
Network, expected to launch in 2022.
HOW: The release of "exclusive digital content," likely in

the form of NFTs and blockchain-based products and
possibly gaming assets.
SPECIAL SAUCE: We don't know yet, but there are many

ways to create special moments and experiences for
collectors. To date, we have seen rival Porsche auction a
car design sketch through the SuperRare platform. The FERRARI NFT: There are soooo many possibilities for Ferrari to capitalize on
NFT came with the physical version of the drawing. its rich and storied brand. From (my favorite) classic cars as digital
collectibles, to "treasure" in historical archives, autographs, the engine sound,
and limited edition artwork linked to real world experiences (drive on the
Ferrari track, be in the Formula One box) - to lower priced virtual wearables
(hats, hoodies, tshirts, stallion). This will be a fun one to watch!
Samsung NFT Display 2022

What good is a collection no one can see?
WHAT: Staring at your non-fungible tokens on a smartphone

or laptop screen is fine and all, but why not remind everyone
who visits your home of the money you spent on digital art
NFTs by showcasing them on your TV screen?
HOW: Samsung 837x is the world’s first TV screen-based NFT

explorer and marketplace aggregator, a groundbreaking
platform that lets you browse, purchase, and display your
favorite art — all in one place with 4k QLED technology.
SPECIAL SAUCE: The platform will let creators “share their art
with the world” and let potential buyers:
Preview an NFT before purchasing it
Learn about an NFT’s history and blockchain metadata
An early mover in the Metaverse with VR, Samsung has also bought space in
Decentraland. where Samsung 837X created a fully immersive experience, featuring
quests and live music events.
NFTs: Where to Find and List Them
Marketplaces
NFT Marketplaces
Some of the top NFT Marketplaces in 2021
OpenSea AXIE SuperRare

With 97% of the NFT market, the world’s largest market Rarible Highly exclusive, SuperRare gears its audience of Foundation App
place for Crypto collectibles. OpenSea offers a wide Axies are mythical creatures that can be bought Art, videos, collectibles, and music can be bought, collectors. Because they collect the world’s top Designed as a simple, no-frills way to bid on digital
array of digital assets on its platform. It's free to sign and trained and then pitted against other players' sold, or created on the platform. You need to use artists, the audience of collectors is typically more art. Sales are made using Ethereum. Since the
up, and easily supports artists and creators to mint their Axies to earn rewards. On Axie Marketplace, the marketplace's own token Rarible to buy and wealthy collectors looking to add to their marketplace's launch in early 2021, it has sold
own NFT . players can buy new Axies, as well as entire lands sell on the marketplace. Rarible is built on the esteemed collection. SuperRare charges a more than USD 100 million of NFTs.And yes, that
The marketplace supports more than 150 different and other items, as NFTs for use within the game. Ethereum blockchain. 3% transaction fee and an additional 15% artist logo looks like it came from Squid Games.
payment tokens. gallery commission for primary sales.
Mintable Nifty Gateway Bored Ape Yacht Club Blankos Block Party MakersPlace
Backed by Mark Cuban, it's similar to OpenSea An art curation platform powered by the crypto Like Larva Labs CryptoPunks, the Bored Apes have This open-world multiplayer game hosted drops A boutique NFT marketplace that prides itself on
and supports minting of NFTs for creators of all exchange Gemini controlled by the Winklevoss captured the world's imagination and passion for digital by Burberry and DJ Deadmau5. With a focus on hosting numerous exclusive collections of digital
types from photographers to musicians who want Twins. The NFTs, known as Nifties, are built on collectibles and is partnering with brands like Adidas for custom art and design, building and exploration fine art.
to sell their work as a digital asset. Mintable is Ethereum. Has sold famous works by Beeple to limited edition Apes and outfits. and curating your collection of unique and rare
built on the Ethereum blockchain. celebrity Grimes. A limited NFT collection where the token itself doubles Blankos - fun and mischievous digital vinyl toys
as your membership to a swamp club for apes. brought to life.
NFT's 2021: Deal of the Year
Nike/RTFKT
Deal of the Year: Nike

Purchased RTFKT
Cryptokicks get a boost
In 2019, Nike filed a patent for "blockchain-enabled digital shoes" with a vision of
capitalizing on the fast-growing gaming thirst for virtual merch.
Perhaps unsurprisingly, in December 2021 Nike purchased RTFKT (pronunced like

"Artifact"), a company that gained notoriety in October 2021 for selling its first digital
sneaker for 30 Ethereum, (about $115 thousand dollars at the time). Earlier in the year,
in February it sold a collection of sneakers in NFT for a total of about $3.1 million dollars.
This is a significant stake in what many expect to be a stand-alone Nike marketplace,

enabling the firm to sell virtual merch online for use in multiple VR and 3D gaming and
social platforms. More importantly, it's the first brand to seize the opportunity presented
by digital transformation and stake a bold claim in the future of the Metaverse economy.
Cryptokicks https://www.nssmag.com/en/fashion/28420/rtfkt-nike-cryptokicks
NFTs: Just because

you can
...doesn't mean you should
NFTs, Brands and Utility

A powerful marketing tool, however, not everything needs to be an NFT.
30 billion spent on NFTs 2021 Every Brand has "Treasure in the Attic" But Does it have to be an NFT?
This is a long-term, systematic shift in For every generation, there is an NFT. Think Just because you can, doesn't mean you should.
demand for digital goods. Opens about brands like Coca-Cola whose iconic If there is nothing inherently collectible, no
opportunities for both new creators and the branding and advertising span decades - or the strong design element, no digital-world utility,
virtual economy, as well as new collectors Spiderman franchise - or indeed your favorite or no significant real-world utility, why do it?
and digital collectibles. limited edition Oreo cookie flavor. NFT's are for digital flexing, iconic collectibles,
artwork, IP - membership is a small feature.
More importantly it's not just art - but Every brand has some IP that resonates with
digital stills, videos or moments in time consumers, whether it is a brand mascot, Sure, NFT's are hot - and they're warming the
which can be linked to real world goods and ambassador, special "moment", historical planet. Environnmental costs are currently
services. archives, or even sound. Finally consider high. Some estimates show minting an NFT
working with established avatars (see Adidas x uses the energy to run a refrigerator for a
Bored Apes) to amplify your campaign. month. So are NFT's the responsible and
sustainable way to market your brand?
When NFT's Make Sense

There are four main reasons to use them for Branding:
• An NFT can make virtual items as unequivocally "signed" and unique as tangible products,
solving the problem of authenticity. This is critical for luxury brands, but also for more
"pedestrian" collectibles at any price range - i.e. McDonald's happy meal collectibles - to
enable a strong secondary market.
• With NFTs, the opportunity to widen the range of products that can be sold in multiple forms
expands to multiple platforms. For example, a fashion brand could sell the video of its runway
show or individual signed designs of the collection, and backstage photos as NFTs: these
experiences bridge the physical experience with digital collectibles of the objects and
experience.
• NFTs can extend the value of physical products. Owning a custom Lamborghini clearly has its
privilages. Imagine a driving experience linked to a car previously owned by a celebrity or
professional race car driver like Lewis Hamilton on a Formula 1 track in Monaco. NFTs could
also act a digital copy "associated" with the physical product and therefore usable online for the
avatars of a video game.
• A certified NFT could have an impact on the world of resell, not only by keeping an accurate
map of the change of ownership of an object but also, as an example, provide brands with a
percentage of royalties every time their product is sold in the secondary luxury market.
Not only are NFTs a novel way to build both brand

recognition and expand sales and deepen customer
loyalty, blockchain authentication provides buyers the
ability to purchase luxury goods with confidence.
"In April 2021, luxury goods titan LVMH revealed that it was preparing
to start offering Aura – a blockchain-hosted platform that it says will
“serve the entire luxury industry with powerful product tracking and
tracing services, based on Ethereum blockchain technology and
utilizing Microsoft’s [cloud computing service]” – in an industry-wide
capacity. In making such an announcement, LVMH revealed that Swiss
conglomerate Richemont and Prada Group will join what it is calling
the Aura Blockchain Consortium.
The use of an industry-wide blockchain that securely holds information

about luxury goods would “increase customer trust in the brands’
sustainable practices and product sourcing”
From The FashionLaw

Branded NFTs
Outlook for 2022
Utility Plus
What's Next 01 NFTs purchased via the secondary market have a much
higher chance of leading to a profit; only 28% of NFTs
for NFTs purchased during minting result in a profit, while 65% of

NFTs purchased in the secondary market lead to a profit.
(Chainanalysis)
As 2022 begins, what can brands expect - and how
Integrating real world benefits - even temporal - to
should they prepare?
02 increase loyalty and physical utility to incentivize, engage
and reward hard core fans.
03 Allow for Virtual asset co-creation, enabling fans an

opportunity to participate as fans and artists - and let
them earn from their work.
Mystery offers: not all competitions are like Squid Game.

04 But they can be addictive. Structure one to generate
buzz and investment.
Start somewhere. Anywhere. Launch as a "charity" to

05 reduce risk. But get started: NFTs are no longer an
optional "if" - but a how and when.
Make no Mistake: It's a Gold Rush.

Beyond Brands There are ample opportunities for companies in every industry to cash in
on the NFT/blockchain gold rush, by harnessing the transparency and
2022
efficiency of the new technology. Blockchain was created as a public
ledger to record transactions made with digital currencies so that anyone
could see them. It relies on various cryptographic methods, including
“proof of work” to establish that every transaction is correct. So what else
From telcos to financial institutions, endowments, can it be used for? A few examples:
foundations...expect everyone to jump in the market. NFT Sales: financial institutions may profit from NFT and crypto
wallets, and potential payment flows from buying and selling NFTs
NFTs will be used to verify trades of physical items e.g. artwork to car
titles to house deeds and tuition payments, to private equity
Blockchains will confirm legal documents and payments
Nonprofits and Endowments can track donations on the blockchain
Services: medical records & prescriptions could be posted on the
blockchain; your pharmacy and insurance company could respond to
it directly on a blockchain
Researcher Silvio Macali makes the analogy that blockchain is to (the

Metaverse) what aqueducts are to cities. City growth was constrained by
the availability of clean water until the invention of aqueducts. With new
digital currencies and traceable transactions, the space for growth is
immense - if not immeasurably vast.
Like most high-stakes games, first-movers may stake strategic advantages

over those who take longer to perfect their plans.
Thank You!
Catherine D. Henry is a leading voice on the Metaverse, covering virtualization and how
5G, augmented reality, virtual reality, and artificial intelligence are transforming business
today. A seasoned economist, she combines futurism with creative technology and
strategic implementation. Catherine is currently SVP of Growth at Media.Monks, where
she advises major global brands on how to enter the Metaverse by decoding technology
and interactive experiences, helping brands negotiate new worlds, platforms and rules,
Catherine D. Henry
from enterprise to entertainment.
Follow me for more!

Linkedin
With a career spanning nearly 20 years in global financial services leading institutional https://www.linkedin.com/in/cdhenry001/
sales for private and equity tech investments, Catherine coaches companies on how to
communicate, collaborate and create with tech –– no matter where they are. She did post

Substack
graduate work in Economics and Management at SDA Bocconi, MA in economics at the https://catherinedhenry.substack.com
Johns Hopkins SAIS, also post-graduate work in immersive media & VR Film making at
NY Film Academy. Catherine has lived and worked extensively in Europe and Asia and Author: Catherine D. Henry, 2022
speaks five languages.
All rights reserved.

The content contained herein reflect my
personal views and opinions.

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2021 Notable

Branded NFT Intelligence Report 2022

Branded NFTs: No Two Campaigns were the Same

So what's the Secret Sauce?

Catherine D. Henry: Branded NFT Intelligence Report 2022

NFT Sales Volume December NFT Sales Volume

Digital collectibles drawing on nostalgic iconography and momentos from these

02 Why Now: With record sales of cultural icons, brands sought to

03 How its Going: Significant trends have emerged showing brands

In 2020, gaming quickly emerged as one of the most popular

Louis Vuitton committed early to the gaming world as one of the

In 2021 UNIQLO created a collection for Animal Crossing and

While this is an obvious play for retail brands, the Metaverse

SECRET SAUCE: 5,000 rarities in this release, redeemable for real-life

Charmin (yes, that one)

WHAT: Charmin was a first-mover in the NFT

SECRET SAUCE: Charmin ostensibly has no reason

WHAT: A collection of gifs and images featuring

HOW: Listed on the Rarible platform.Starting prices

SPECIAL SAUCE: The NFTs included a $500

WHAT: Burger King’s Keep It Real Meal boxes, from

HOW: Gifts range from three NFT collective tokens to

WHAT: A multi-sensory NFTs housed inside a Friendship Box (itself an NFT)

SPECIAL SAUCE: Four "Friendship Boxes"

WHAT: Marvel is issuing digital comic books based on its

HOW: Each digital figure will have a different level of

SPECIAL SAUCE: Fans buy and collect a variety of Marvel

HOW: Players travel across different worlds to amass candles along

Adidas x Bored Apes HOW: Adidas Originals co-created one digital

HOW: Unlock the brand for the gaming community by encouraging

SPECIAL SAUCE: A limited- edition, limited-quantity Burberry Blanko

HOW: They win by promoting the brand online

SPECIAL SAUCE: Loyalty First. This Membership

NBA Top Shot

In addition to the expense of hosting an own-brand platform, This

Some pundits attribute NFTs appeal to brands to pursue their own

Sports: Autograph NFTs

WHAT: These cards and offers span a range of pro

HOW: Iconic moments as video, signatures, linked

SPECIAL SAUCE: (See Brady example) Each edition

WHAT: 500k waited, only a few lucky won. The

HOW: November 30, 2021 The much-anticipated

SPECIAL SAUCE: The NFTs feature “base”

Ferrari: coming in 2022!

WHAT: A multi-year contract as part of a new

HOW: The release of "exclusive digital content," likely in

SPECIAL SAUCE: We don't know yet, but there are many

Samsung NFT Display 2022

WHAT: Staring at your non-fungible tokens on a smartphone

HOW: Samsung 837x is the world’s first TV screen-based NFT

NFTs: Where to Find and List Them

OpenSea AXIE SuperRare

NFT's 2021: Deal of the Year

Deal of the Year: Nike

Perhaps unsurprisingly, in December 2021 Nike purchased RTFKT (pronunced like

This is a significant stake in what many expect to be a stand-alone Nike marketplace,

NFTs: Just because

NFTs, Brands and Utility

When NFT's Make Sense