EXCLUSIVE: As Major Brands Explore Web3, 'Expect NFT Bull Run Peak In 2 Or 3 Years'

Web3 and NFTs are going mainstream. With the younger demographic being dominant in the space, new use cases developing and brand associations, we may just be at the start of another bull run.

These ideas, and more, were discussed at the Benzinga Future Of Digital Assets event held on Nov. 14, 2023.

The panel discussing ‘Why Major Brands Are Going Web3?’ was moderated by Lawrence Hutson, co-founder and cTO at AdLunam.

Alex Salnikov, co-founder and chief strategy officer at Rarible and Charlie O’Neill, senior manager, Emerging Partnerships at American Express Co AXP shared their views on NFTs and Web3 – adoption with consumers and brands and what could lie ahead.

Salnikov, who co-founded Rarible, shared that with more than one asset classes entering the space, his team realized that different products needed different marketplaces. This led to the launch of RaribleX – which is like “the Shopify Inc SHOP for NFTs,” he said.

O’Neill, from AmEx, has observed that the Gen Z & millennial group is super excited about this technology. They’re just looking for easier ways to interact with brands. This is where tokenization plays a pivotal role in that it provides that layer in between for brands and consumers to interact and communicate seamlessly. AmEx is enabling this through their mobile app.

Partnering With Brands

Rarible has partnered with a lot of brands already, with Mattel Inc MAT being their biggest client, Salnikov disclosed. They are also associated with McFarlane toys. Toy companies such as Mattel and McFarlane have a lot of IP (intellectual property) which they’re turning into digital products. Rarible also works with other brands such as Fox and Animoca Brands, to name a few more.

AmEx had partnered with Metalwood at the U.S. Open Golf – and facilitated selling their NFT drop-offs. “The drops sold off instantly” exclaimed O’Neill, indicating consumer interest in associating with brands through this route. At the U.S. Open Tennis, AmEx had offered a token, which when linked to the app, offered an exclusive discount on their Uber UBER or Lyft LYFT ride back.

Moderator Hutson also cited the example of The Walt Disney Co DIS who recently launched their own NFT marketplace with Dapper to feature their iconic characters.

Related: Disney Launches NFT Marketplace With Dapper Labs Featuring Iconic Animation And Star Wars Characters

What is next for NFT & Web3?

Going forward, O’Neill believes the experience is getting easier for consumers. NFTs also have more power vis-a-vis cookies.

Salnikov sees NFTs taking two different routes:

1. NFTs becoming a hyper-financialized asset: that one buys like any other investment on an exchange – for example, owning an IP via NFT and earning revenue on licensing it, just like Pudgy Penguins IP rights.
2. NFTs being owned like consumer goods: which consumers buy not to flip it, but to own it in their digital identity.

For the last two years NFTs have been going down, and many believe that NFTs are “dead and done”. However, there has been a lot of innovation happening behind the scenes which makes Rarible’s Salnikov believe that the “next two to three years could see the peak of the next bull run”.