Binance says a crypto sector is transforming revenue models and securing a prominent place in the culture
Crypto exchange Binance says a crypto sector is changing the way big brands do business and connect with their communities.
Binance says in a new blog post that non-fungible tokens (NFTs) are changing the way companies look at membership and loyalty programs.
“Popular brands, including sports organizations, can use NFT-based membership systems to reward their customers or supporters. Access can be granted to a user when they connect their crypto wallet to the organization’s platform and confirm their ownership of a membership NFT. These tokens can then unlock a range of benefits online and offline, such as access to exclusive events and services and much more.
In fact, the mechanics of NFTs are an excellent addition to traditional membership systems: they can serve as a sign of a status that provides exclusive benefits to the special person who qualifies for them. In that sense, it is reasonable to say that a membership is non-fungible.”
Binance, the largest crypto exchange in the world by volume, says NFTs can potentially disrupt the traditional membership system by addressing its inefficiencies and providing additional revenue streams for companies.
“With NFT-based memberships, the login or verification process can be drastically simplified. All you need to do is make sure you have the right NFT in your wallet before connecting it to your organization’s platform, then go straight to enjoying the benefits you’re entitled to.
The lifetime value of traditional memberships rarely goes up: most people get the same benefits they subscribed to. Some companies may even decide to cut certain benefits after a while. With NFT membership, it doesn’t have to be like that.”
Binance notes some downsides to NFT-based membership systems. For example, the exchange says that onboarding customers to an NFT membership is still much more complex and counterintuitive for the user.
“While there are many benefits to NFT membership, it is still much quicker and easier for most people to get a traditional membership. As with many Web3 innovations, one of the main barriers to adoption is a lack of information and skills to exploit the technology. For the same reason, the number of businesses offering NFT membership is still quite limited.”
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
