Is Toys ‘R’ Us just playing with NFTs or serious about the opportunity?

13 December 2022

The new Toys “R” Us has made more innovative, trendy moves than it did before its last relaunch, and now extends to getting involved in Web 3.0.

The toy retailer is launching a 10,000-item collection of non-fungible tokens (NFTs) available on a blockchain called Solana and purchasable through a marketplace called Magic Eden, according to a press release.

The NFTs, created in collaboration with Web 3.0 company Anybodies, consist of 3D animations of Toys “R” Us mascot Geoffrey the Giraffe inspired by toys available in the store. People who buy the NFTs will be able to earn “GCoins” to redeem for access to exclusive toys and store events, VIP access to flagship openings and early access to new releases, with more associated loyalty rewards and discounts on the way.

While NFTs grew in popularity in late 2021, recent reports show that collectors are skeptical about the long-term value of the digital assets.

In the third quarter of 2022, NFT sales were down to $3.4 billion, after reaching a peak of $12.5 billion in the first quarter of 2022, according to a Reuters article. In the traditional art collecting market, where big money was thrown around on NFTs early on, sales through major auction houses plummeted from £127m in 2021 to £8.4m this year.

Toys “R” Us isn’t the only retailer experimenting with rolling NFTs into a loyalty program.

Starbucks announced earlier this year its revamped Starbucks Odyssey loyalty program, which it has just opened up to beta testers, according to TechCrunch. The program allows users to earn NFTs called “Journey Stamps” by performing certain activities in the store or on the app. Customers who have collected required amounts can redeem them for online and real-world experiences.

Brands have also successfully monetized NFTs. For example, Nike, which acquired an NFT creation studio in late 2021, had by August of this year earned $185.3 million selling NFTs, according to Input data.