A historical analysis of 2022 NFT and blockchain trends. While the hype surrounding digital tokens has subsided, the core principle of building a direct connection between a brand and its most loyal customers remains universal. Today, we build customer loyalty through automated email sequences and digital marketing funnels.
In late 2020, news emerged about the launch of NBA TopShot, a platform for digital NBA game moments. I visited the website, saw packs of moments priced at 99, 199, and 599 USD, and thought: "Who actually needs this? Who is going to buy it?" Yet, those very moments are now worth tens or even hundreds of thousands of US dollars in 2022, and every "late" NFT fan fantasizes about what would have happened if they had believed in it back then.
In 2022, NFTs (non-fungible tokens) marked a period of experimentation with digital ownership and loyalty programs. While the speculative market has normalized, the foundation of successful marketing remains unchanged: true loyalty is driven by real service value, flawless customer experience, and personalized communication, rather than technological trends.
In March 2021, my son encouraged me, saying this would be the next big thing, something people would talk about just like they once did with cryptocurrency. Not wanting to be left behind, I decided to jump into the world of NFTs and bought my first one: a Kristaps Porziņģis game moment for 11 USD.
What is an NFT?
In simpler terms, an NFT is a unique digital asset. The Kristaps Porziņģis moment I mentioned is a digital collectible card issued in a series of 30,000 units. Each of these 30,000 moments is unique, assigned its own number, and cannot be forged, yet it can be quickly sold, bought, or gifted. By purchasing this Kristaps Porziņģis NFT, I received a specific moment with a serial number on my NFT platform, and everyone can see that I am the owner of that specific moment. Wikipedia tells us that an NFT is a non-fungible token.
NFTs are not just sports moments; they include various artworks, audio files, video files, photos, and 3D works. In principle, it can be anything that holds some known value, can be sold, or traded.
One more essential thing to understand: NFTs are part of the often-mentioned future of living in a parallel world. The metaverse, cryptocurrency, virtual reality, digitalization, and digital assets all integrate NFTs quite organically, and it is already clear how companies can use this to their advantage.
The connection between NFTs and cryptocurrencies
NFTs are another branch of blockchain technology that has significantly strengthened the crypto industry over the last year. Many NFTs can only be purchased with cryptocurrency, but projects aiming for mass adoption also allow for traditional purchases via bank card payments in fiat currency. Is there a correlation between NFT value and the cryptocurrency market? Theoretically, there should be, but often there is no correlation at all; NFT projects tend to live their own lives. For example, the value of NBA TopShot NFT moments is determined more by the value of the NBA players, the rarity/frequency of the moments, and the demand for them.
NFTs in Latvia
The fact that NFTs have arrived in Latvia is proof that it is a popular and proven format globally. AirBaltic has created its own NFT collection on the OpenSea platform and is certainly the largest company in Latvia to start using NFTs in its marketing. The artist KIWIE is actively creating and successfully selling NFT artworks. A very charming project called 300 Latvians has also been created. The Latvian-Estonian Basketball League has launched its own NFT project for league players. Some projects (Kiwie and 300 Latvians) are very successful, while others are stagnating, but it is normal for the early stages of any industry to involve testing to see what actually works.
Major NFT projects
There are several platforms where you can see existing NFT projects and their transaction volumes across various segments. One that I check from time to time is Dappradar. There is also Ayzd, created by Latvians. On these and many other similar platforms, you can see the number of participants, transaction volume, and frequency, making it much easier to weigh which platform to get involved with.
It must be said, however, that the magic of NFTs lies in the fact that the biggest winners are usually those who get in at the very beginning of a successful project. For example, the Bored Ape Yacht Club is the most successful NFT project to date. As part of the project, 10,000 unique NFTs were initially created, each costing only about 200 USD. Now, half a year later, the cheapest NFT costs 250,000 to 300,000 USD. The reason for this is that many global celebrities purchased these Ape NFTs, including Steph Curry, Jimmy Fallon, Eminem, Justin Bieber, Mark Cuban, and others. This created massive popularity for the project, increasing the NFT value to an unimaginable level. The project also includes real-life meetups for members in various countries, providing added value.
My NFT experience
I personally invested a very small amount in the NBA Top Shot NFT platform just to see and feel how it all works and what awaits us in the future. Gradually, the platform drew me in, as the profit from my transactions grew at an incredible pace. I have not invested more in NFT projects than that initial symbolic investment, which could be valued as equivalent to a one-time visit to a moderately priced restaurant. Over the year, the capital has grown by just under 10,000% (!!!), which is, of course, incredible and currently impossible to achieve in any other type of investment. But that is not all; I have heard stories in my NFT community about 100,000% and higher returns on initial invested funds.
I have decided to participate only in sports NFT projects for now, as that is where my competence lies, and I see a connection to real life, real athletes, and real sporting events, which guarantees some backing for the NFT value. A LeBron James or Steph Curry NFT will cost more than an average NBA player's NFT. Currently, I am involved in basketball, NFL (American football), cricket, and UFC NFT projects. I am waiting for the next ones: football, F1, NHL, golf, and others.
How are (and will) NFTs be useful in marketing?
Finally, we arrive at marketing. Everything mentioned above points more toward speculative transactions and a proper NFT bubble. Yes, in a way, that is true; similar optimism existed in the early days of cryptocurrency. By the second half of 2021, a cooling off and a drop in activity were observed on the NBA Top Shot platform, and a slight depression set in. Other NFT projects experience similar highs and lows. This is a normal phenomenon in an industry that has just been born: some die immediately, some after a while, some recover, and others, through long-term planning, manage to survive to this day.
Currently, NFTs are actively used by companies that have some entertainment value: sports, music, and art industries. However, other solutions are gradually appearing that are already part of a digital marketing strategy. The NBA, for example, created VIP NFT tickets for its annual All-Star event, where all NBA stars gather for various competitions and the game. This NFT provides free entry to all All-Star events for the next 5 years and many other bonuses.
Therefore, I predict that in the future, NFTs will be:
- digital artworks (photos, paintings, 3D, digital art)
- video and audio works (e.g., musicians selling songs as NFTs)
- loyalty programs (membership in a club or program)
- event entry tickets
- VIP programs
- and much more
NFTs will be a space for expression for everyone: both creative individuals and companies that have some value that can be digitized. NFTs are no longer a distant future; they are the present, but in the future, this industry will certainly have different applications and value. In principle, NFTs are already a new chapter in digital marketing.
One must understand that where there is big money, there are many dishonest people, both among project creators and consultants. Currently, the biggest winners of NFT projects are their owners: they sell what was created initially, receive the money, and can disappear. But long-term project creators will certainly think about how NFTs will fare in the secondary market, whether they will have future value, and whether buyers will make repeat purchases. All of this must be taken into account.
Frequently Asked Questions about digital innovation and loyalty
Does NFT technology still have practical applications in marketing?
Today, blockchain technologies are used in niche areas: digital certificates, luxury goods authentication, and closed clubs for exclusive events, rather than in mass advertising campaigns.
Which digital marketing methods ensure the highest customer loyalty?
In the long run, the highest returns come from personalized email automation, regular valuable content, and a flawless shopping experience on the website without technical friction.
How can a company build long-term relationships with its audience?
Build a stable digital infrastructure: maintain your customer base, regularly solve their problems, and communicate honestly without empty marketing promises.
Looking to build a stable marketing system focused on customer acquisition and loyalty?
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