On December 12, at the ‘Exploring the Future of NFT: Revolutionizing Digital Ownership, Brand Collaboration’ seminar hosted by the Taipei Blockchain Week 2024 (TBW 2024), three important guests from the NFT industry discussed the future possibilities of NFTs in digital ownership, brand collaboration, and the popularization in the mass market. The participants included Daniel Duan, CTO of Legitimate (host), Cheryl Law, Asia Director of Pudgy Penguins, and Jonathan Mui, co-founder of Moongate. Their discussion covered the value extraction of NFTs in physical applications, brand strategies, and the connection between Web2 and Web3 ecosystems.
Image source: TBW ‘Exploring the Future of NFT’ keynote speech.
How NFTs can break through the positioning of ‘merely digital assets’
Cheryl Law stated that Pudgy Penguins has successfully combined NFTs with physical products, such as licensing NFT holders to use their IP for producing physical toys, which have entered large retailers like Walmart and Target for sale. This model not only allows NFT holders to earn income through royalties but also gives NFTs a stronger physical value.
‘Compared to traditional NFTs, this approach allows users to feel a real sense of ownership while lowering the technical barriers, making it easy for non-professionals to participate,’ she added.
Jonathan Mui pointed out that Moongate's NFTs are the ‘key’ to unlocking further value, rather than the final product. He stated that many brand partners do not want NFTs to be merely collectibles but tools that can bring actual benefits. For example, Moongate's platform can help brands design customized NFTs as part of customer loyalty programs. ‘When users can obtain tangible rewards or participate in brand events through NFTs, this model can bring more stickiness and value to the brand,’ he said.
Avoid NFT-related terminology: focus on value and application.
The three participants unanimously agreed that when introducing NFTs to Web2 companies, overemphasizing blockchain or NFT terminology could lead to misunderstandings or concerns from legal departments. Cheryl shared that ‘we prefer to describe it as a digital collectibles platform and demonstrate the actual benefits it brings, such as revenue growth, cost savings, or increased consumer engagement.’ Jonathan added that when businesses see concrete data supporting the business value rather than just technical jargon, the collaboration process often accelerates.
This strategy not only helps shorten the cycle of business negotiations but also allows brands to focus on the actual uses of NFTs rather than their technical backgrounds. Cheryl emphasized that this is especially true in the Asian market, where brands pay more attention to the practical applications and marketing effects brought by NFTs rather than the underlying blockchain technology.
The future of NFTs: physical applications and brand collaborations.
Looking ahead, Cheryl believes that the NFT industry will further move towards application models that are closely integrated with the real world. She pointed out that purely technology-driven NFTs will gradually be phased out, while projects that can provide real value will stand out in the market.
‘We see an increasing demand in the market for physical applications; from toys and fashion brands to consumer loyalty programs, the value of NFTs will no longer be limited to the digital world but will also step into real life.’
Jonathan also stated that the success of NFT projects will depend on deep collaborations with major brands, especially in achieving user engagement and enhancing brand loyalty.
‘When NFTs can help brands effectively establish deeper connections with consumers, this will become the core manifestation of their value.’
Daniel Duan added that the future development of the NFT industry will also involve exploring broader cultural differences and market demands. For example, how to formulate customized strategies targeting the characteristics of users in different regions will be key to whether NFT projects can achieve globalization.
The entire discussion indicated that NFTs are no longer just symbols of digital assets, but rather tools that transcend the boundaries of technology and commerce. With the deepening of physical applications and brand collaborations, NFTs are redefining the possibilities of digital ownership and business models in new ways.
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‘TBW) The key to NFTs breaking through! Pudgy Penguins executives reveal successful strategies: moving from digital to reality’ was first published in ‘Crypto City’