What Brands and Companies can learn from Visa purchasing a CryptoPunk NFT for $150K
Updated: Oct 3, 2022
On August 19, 2021, Visa purchased a CryptoPunk NFT for $150,000 (49.5 ETH)
Visa announces NFT purchase
This week Visa announced it had purchased a CryptoPunk NFT for $150,000 (49.5 ETH) grabbing the attention of the entire cryptocurrency community, along with mainstream media. CryptoPunks is a digital avatar drawn in an 8-bit graphic style with thousands of unique designs represented as a cartoon-like person. Visa purchased a female CryptoPunk, #7610 which is one of 10,000 and one of 3,840 female punks.
Visa, the worlds largest credit card company, has an entire team devoted to cryptocurrency with led by Cuy Sheffield, Head of Crypto, who said in a blog post released Monday,“We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce.”
Sheffield also stated, "We also wanted to signal our support for the creators, collectors, and artists driving the future of NFT-commerce. Enabling buyers and sellers is what we do — whether its helping small and micro business owners get online, or making it easier for companies to pay their partners across borders. We’re excited to work with this growing community to make NFTs useable and accessible in a variety of contexts."
Why would Visa purchase a CryptoPunk NFT? Visa is taking a strong stance in showcasing their business position on cryptocurrency and NFTs, even stating they see the purchase of the CryptoPunk as an "artifact". The recent NFT mania coupled with the market and financial institution acceptance of Bitcoin, and even early adoption of DeFi, among other crypto assets has shown cryptocurrency is here to stay. NFTs have the ability to bridge the gap between crypto early adopters and late majority consumers.
By purchasing the CryptoPunk NFT, Visa is able to use as a marketing and PR opportunity establish credibility with a growing community of crypto enthusiast, hold on to an asset which is showing to hold its value, build brand awareness and loyalty, and showcase themselves as a leader in NFTs for potential business partnerships.
What Brands can learn from Visa buying CryptoPunk NFT
It's only a matter of time before Brands dive into the deep end with NFTs. Currently brands have been introduced to NFTs from the lens of selling art or acting as an artist. While the NFT boom has been great for artist and the creator economy, there is a tremendous opportunity for brands to get involved, and Niftmint is supporting brands to use NFTs as opportunities for "one more sale", building brand awareness and loyalty, and gaining new customers.
Here are some lessons Brands can take from Visa's recent purchase.
Marketing and PR
By simply purchasing an NFT, Visa was able to leverage a tremendous amount of press mentions across business and tech mainstream media. Visa could have just as easily spent $150,000 in advertising and while we don't believe marketing was the only reason, but it definitely played a factor. Owning the CryptoPunk provides will provide ongoing marketing and PR opportunities for Visa as they own full rights to the piece and can use in future content.
While purchasing a collectible may not be the right strategy for every brand, purchasing NFTs belonging to artist or communities related to customers Brands are looking to build audience with could prove to be an interesting starting point. Brands also have opportunities to build their own crypto-centric communities by creating their own collections.
The key for Brands is to keep their customers on their website and to have them transact with their preferred payment method of the consumer using Niftmint.
Build credibility with new audience
By adding NFTs to product offering, Brands open up doors for new customers who skew towards Gen Z and Millennials and are generally more technology savvy. These new audiences are often part of broader communities in cryptocurrency which give chances for higher user growth.
In addition to finding new audiences, NFTs help show relevance with a Brand's existing community and even creates the opportunity to become the entry point for their consumers to purchase their first NFT.
Not every customer will want to or know how to purchase with cryptocurrency or store an NFT in a wallet, which is why Niftmint handles both on behalf of brands and their customers.
Hold an asset
While most Brands strictly carry cash or inventory on their balance sheet, cryptocurrency and NFTs have created an interesting opportunity to hold a diversified asset as treasury. We have seen companies like MicroStrategy, Square, and Coinbase commit to holding Bitcoin in treasury.
We may soon see companies begin to hold NFTs as treasury. The companies holding Bitcoin have taken the opportunity to leverage for press and marketing exposure.
We are not providing financial advices and any Brand considering holding assets should speak with a financial advisor first.
Build brand awareness and loyalty
Whether purchasing NFTs or creating branded NFTs, Brands are able to use to grow Brand awareness and loyalty. Arizona Ice Tea recently purchases a Bored Ape and has let on they will be using for marketing along with its broader brand value.
Selling NFTs directly on the Brand website not only brings new customers, but also create continued engagement opportunities as Consumers interact with the NFT. Niftmint custodies NFTs on behalf of the brand and via API allows Brands and their customers to visualize the NFT on their channels.
Create business partnerships
Getting involved in the NFT space opens Brands up to future opportunities with business partnerships, influencer and sponsor partnerships, and even net-new revenue opportunities. Visa will no doubt have partners reach out to them regarding potential collaboration. such as cobranded products and cobranded NFTs leading to additional discovery.
Brands looking to add NFTs to their product offering and looking for a turn key solution can visit Niftmint.com.
Niftmint integrates with Brands to simply mint, sell, and custody NFTs on their websites or apps without needing to manage cryptocurrency or a crypto wallet. The thought of selling NFTs can be overwhelming for brands due to cryptocurrency, minting, and custody, which why Niftmint handles this all on behalf of the Brand and their customer, allowing the transactions to occur via credit card.
If you are a Brand or partner who like to discuss your NFT strategy and begin selling NFTs, please visit Niftmint.com and fill out the Contact Us form.