International globally-leading brands are beginning to integrate aspects of blockchain into their infrastructure. Further, the number of corporate NFTs is seemingly on the rise over the last 12 months. This includes the likes of the McDonald’s McRib NFT, the Adidas NFT, and the Coca-Cola NFT auction celebrating International Friends Day. However, being one of the first movers in an innovative and evolving paradigm naturally means there are hurdles along the way. This appears to be the case for sports giant Nike Inc. which is currently filing a lawsuit against selling NFTs using its branding without permission. Moreover, there are rumors of legitimate Nike NFT releases in the pipelines.

In this article, we will dive deep into the world of corporate NFTs. We will explore the fundamental value propositions of non-fungible assets before exploring some of the top corporate NFTs. Plus, we’ll evaluate the pros and cons of corporate NFTs from both a business and consumer perspective. 

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What are Corporate NFTs?

Non-fungible tokens (NFTs) are some of the hottest digital assets available. Moreover, NFTs are revolutionizing how consumers can interact with their favorite brands and creators. In particular, global brands are pioneering corporate NFTs that present a new medium of interaction and revenue stream. 

Non-fungible tokens (NFTs) can take many forms. Thus, corporate NFTs offer different utilities and features depending on the brand and asset. Overall, corporate NFTs offer consumer exclusivity, digital ownership, and social “flexing” rights in the metaverse. Furthermore, some corporate NFTs offer a cryptographic link with a brand’s physical product as well. This could be similar to offering an immutable and public proof of purchase or ownership.

There are some misconceptions surrounding non-fungible tokens (NFTs). Namely, they are “nothing more than JPEG”. Below, we’ll briefly discuss the value propositions and utilities of NFTs for readers who may need a refresher.

Non-Fungible Token (NFT) Overview

Thirteen years after the launch of Bitcoin, both knowledge and awareness of cryptographic assets are slowly becoming more mainstream. Following the introduction of interchangeable, fungible cryptocurrencies, a new and unique non-fungible asset standard emerged. Instead of a blockchain recording solely peer-to-peer payment transactions, a blockchain can represent tokenized versions of real-life or digital assets using NFTs. This includes unique pieces of data, such as certifications, licenses, or real estate.

With the ability to represent just about anything using a non-fungible token (NFT), existing NFTs can represent unique artwork to real-life experience opportunities. Furthermore, NFTs can even offer utility in climate change industries, representing units of energy or carbon. Also, some NFTs can be redeemable for exclusive physical merchandise, using blockchain as proof of ownership. 

Exploring Top Corporate NFTs in 2022

NFTs present exciting new marketing opportunities for businesses. Accordingly, some of the world’s leading organizations are pioneering a trend of corporate NFTs as a way of attracting a new audience. Plus, corporate NFTs help large brands stay relevant as we witness the evolution of Web3 development. Below, we will discuss four of the world’s biggest brands as they begin to introduce corporate NFTs on a mass scale. 

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Adidas NFT

On December 17th, 2021, all 30,000 of the Adidas “Into the Metaverse” NFT collection sold out in just a few hours. Joining in partnership with gmoney, PUNKS Comics, and Bored Ape Yacht Club, each Adidas NFT cost 0.2 ETH. Plus, 20,000 NFTs were available in early access several hours before the public sale. Overall, the sports giant made over $22 million in one afternoon from its Adidas NFT sale.

Each Adidas NFT represents ownership of exclusive physical merchandise, including a Bored Ape Yacht Club tracksuit and hoodie. However, these goods won’t be ready until later in 2022. As such, some outlets have referred to this as “expensive pre-orders for the clothes”. On the other hand, the Adidas NFT gives holders access to upcoming digital experiences, yet to be confirmed. 

During the launch of the Adidas NFT, the company overcame a technical issue that resulted in the minting process being paused. Accordingly, Adidas promises to reimburse the gas fees for anyone who lost gas fees as a result. The company hasn’t made any more public announcements of future NFT releases. Per contra, its Into the Metaverse Adidas NFT collection website state that “this is just the beginning”. 

Coca-Cola NFT

To celebrate International Friendship Day on July 30th, 2021, the world’s leading cold beverage brand auctioned the “Friendship Box” Coca-Cola NFT. Moreover, the auction winner received a real-life Coca-Cola SMEG retro refrigerator full of Coca-Cola to share with friends. The auction was available through the leading NFT marketplace, OpenSea, with proceeds donated to Coca-Cola’s partner, Special Olympics.

The Coca-Cola NFT takes inspiration from friendship, housing “dynamic motion, movement, and multisensorial elements” to experience in the metaverse. As such, the Coca-Cola NFT, packaged as a “loot box”, represents aspects of the brand’s iconic graphics with three further NFTs inside it. This includes a Coca-Cola bubble jacket that is wearable within the Decentraland 3D virtual reality platform. Also, the Coca-Cola NFT features a sound visualizer – a collection of the distinct sonics of enjoyment from a refreshing Coca-Cola. For example, from the initial palatable fizz to the “ahhh” of the first sip. Finally, the Coca-Cola Friendship Card NFT is a digital iteration of Coca-Cola trading cards from the 1990s with a blend of vintage artwork for 1948. 

After a successful first auction, the Coca-Cola NFT sold for over $575,000, proving a big success with the crypto community.

The McDonald’s McRib NFT

Another popular corporate NFT is the McDonald’s McRib NFT. Available for a limited time only once a year, McRib is one of the best sellers on the menu. As a result, to celebrate 40 years of the McRib, McDonald’s released its first collection of non-fungible tokens (NFTs). The aim of tokenizing the fast-food chain’s fan-favorite item on the blockchain was to allow enthusiasts the opportunity to own a digital representation of the sandwich for when it is no longer available. Also, the McDonald’s McRib NFT is redeemable for a real-life McRib sandwich (while available on the menu).

The McDonald’s McRib NFT was launched as a sweepstake campaign across Twitter, encouraging fans to retweet the sweepstakes invitation tweet. On November 12th, 2021, McDonald’s chose ten random lucky winners from its social engagements to give away the McRib NFT. Although the McDonald’s campaign was popular among its audience, it began attracting media headlines for the wrong reasons.

One of the first transactions to be sent to the McRib NFT address contained a racially offensive message. When users send transactions on Ethereum, they have the option of including hexadecimal data. As such, one person sent the McRib NFT address with an ETH deposit containing an encoded message. When decoded, it reads, “ay yo n***a gibsme sum of dat mcrib”. 

Thanks to the transparency of blockchain, it appears conclusive that no McDonald’s employee or associate was responsible. The ETH address in question owns the Ethereum Name Service (ENS) domain “the-boss.eth” alongside displaying a proliferating history of flipping NFTs on OpenSea. The McDonald’s McRib NFT campaign highlights potential challenges of large-scale public companies using blockchain. Anyone has the ability to send a transaction with publicly inscribed data. Moreover, data on the blockchain is immutable, meaning no one can alter or remove entries. 

Nike NFT

Back in 2019, before the rise of NFTs, global sports brand Nike filed a patent for “blockchain-enabled digital shoes”. Two years on, Nike acquired the virtual product and experience specialists, RTFKT (pronounced “artifact”). RTFKT “redefines the boundaries of physical and digital value”, selling its first pair of virtual sneakers for 30 ETH (around $115,000 at the time) in October 2020. Moreover, the following NFT sneaker collection sold out in just seven minutes, raising more than $3 million! 

CEO of Nike, Inc., John Donahoe, states: “This acquisition is another step that accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming, and culture”. At the time of writing, fans are still waiting for an announcement for an official Nike NFT launch. 

In February 2022, Nike filed a lawsuit against the digital marketplace and apparel exchange, StockX. The online company is allegedly selling NFTs using Nike’s branding without authorization, infringing on trademark agreements. StockX launched a collection of nine “Vault NFTs”, eight of which feature the Nike “swoosh” tick logo. The website states these are “a StockX token representing ownership of a physical pair”. However, Nike states that the NFTs are not yet redeemable for real-life sneakers. Moreover, the lawsuit declares StockX deliberately tried to “confuse consumers into believing that Nike collaborated with StockX on the Vault NFTs” to drive sales. 

To prevent damage to Nike’s global reputation and the future of a legitimate Nike NFT, the company is publicly filing a lawsuit against StockX. Nike is making it explicitly clear that StockX had no legal authorization for including its branding in their NFT designs. Also, Nike is pioneering the first-ever NFT-based legal battle on copyright infringements. The company promises to make it categorically clear upon the release of a Nike NFT. 

Pros and Cons of Corporate NFTs

Now that you know a bit more about some of the corporate NFTs from leading global brands, let’s discuss the benefits and drawbacks.

Pros 

• Non-fungible tokens (NFTs) present businesses with a new medium for marketing campaigns alongside potential additional revenue streams. 
• Corporate NFTs offer a low-cost and time-efficient means for brands to engage with consumers and reward loyalty. 
• Corporate NFTs offer better durability than physical paper coupons and greater security than traditional digital giveaways that may be vulnerable to manipulation. 
• Introducing corporate NFTs allows household brands to stay relevant as we evolve with the development of Web3 and the metaverse. 

Cons

• Depending on the chosen blockchain and the number of NFTs in a campaign, corporate NFTs can be responsible for large amounts of energy consumption. 
• The immutability and decentralization of blockchain mean that corporations must be mindful of potential malicious behavior from the public. A skilled public relations (PR) team and content moderation services may be beneficial. 
• As the technology is still fairly young, corporate NFTs don’t have the multi-generational mass-market appeal yet. There could be some low technical barriers for consumers unfamiliar with blockchain technology and the Web3 internet.

Exploring Top Corporate NFTs – Summary

Overall, corporate NFTs are an exciting new way for consumers to engage and interact with their favorite brands. Furthermore, some of the world’s biggest brands are pioneering the introduction of blockchain engagement. This includes the launch of the Adidas NFT and McDonald’s McRib NFT! Also, Coca-Cola auctioned its own NFT on International Friends Day, 2021, raising funds for Special Olympics International. In addition, it is largely anticipated for Nike to release a Nike NFT following its acquisition of RTFKT in 2021. 

Corporate NFTs offer benefits to businesses and consumers. For businesses, NFTs are one of, if not the most efficient form, of engagement on a mass scale for rewarding exclusivity to loyal consumers. For consumers, corporate NFTs can offer perks, giveaways, and the ability for “social flexing” in the metaverse. Nevertheless, while the popularity of corporate NFTs appears to be growing, there are a few challenges that need to be overcome first to achieve wide-scale adoption of blockchain. 

To learn more about the non-fungible token (NFT) market, see our “Most Expensive NFTs Sold” article next. Alternatively, check out the “Top Crypto YouTube Channels” article for a list of crypto influencers to broaden your crypto knowledge. Or, take your blockchain education one step further with our Ethereum Fundamentals course at Moralis Academy! No matter your age or current level of expertise, Moralis Academy is the best place to kickstart your blockchain education today!