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Rachel Wolfson
Reporter
Rachel Wolfson
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Amidst a dip in NFT sales this year compared to the highs of summer 2021, brands like Casio and celebrities such as Caitlyn Jenner are demonstrating continued faith in the potential of digital collectibles.
Statistics show that NFT transactions are significantly lower this year. In addition, once valuable NFTs are now being sold for much less than what they were purchased for a few years ago.
For example, CryptoPunk #5822, which holds the record for the most expensive CryptoPunk sale, sold for 8,000 Ether in 2022, valued at around $23 million at the time.
On August 19, the NFT was transferred to an anonymous crypto wallet for an undisclosed amount. However, this downward trend hasn’t deterred everyone from engaging with NFTs.
Brands Embrace NFTs Despite Market Fluctuations
Despite declining interest in digital collectibles, brands continue to launch NFT collections.
The Japanese multinational electronics company Casio recently announced a collection of NFT sneakers. Casio teamed up with STEPN GO, the Web3 lifestyle app, to launch the sneakers as part of the “virtual g-shock” project.
A limited number of 800 sneakers were made available through a raffle mint event held during August 26 to 29 on the Mooar gamified marketplace.
Yawn Rong, Co-Founder of FSL – the Web3 product platform that launched STEPN GO on the Apple app store – told Cryptonews that the “G-SHOCK x STEPN GO” NFT sneakers are unique. Rong noted this is because they are the first-ever tradable Genesis Sneakers within the STEPN GO ecosystem.
“This gives them intrinsic value and rarity, making them highly sought-after by both collectors and players,” Rong said. “These NFTs also integrate utility within the STEPN GO app, allowing owners to earn rewards.”
In addition to Casio’s NFT launch, data collected from the Vogue Business Index shows that 17% of brands listed have worked with NFTs since Winter 2021. Louis Vuitton, Dolce & Gabbana, Balmain, Jimmy Choo, and Givenchy have all been involved with NFTs, according to the Vogue Business Index.
Rong believes that brands like Casio are increasingly interested in NFTs because they offer functionalities beyond static digital art. Rather, these NFTs provide utility and engagement within a broader ecosystem.
“In the case of STEPN GO, NFTs are integral to the user experience, offering real-world value through rewards for physical activity,” Rong said.
He added that the utility-driven approach aligns with Casio’s innovation ethos, allowing the manufacturer to reach new, tech-savvy audiences.
“This also enables the creation of unique, interactive experiences that blend physical and virtual worlds,” Rong commented.
NFTs: Building Loyalty and Bridging Experiences
Zhen Yu Yong, CEO of crypto wallet creator Web3Auth, told Cryptonews that brands are also increasingly recognizing how NFTs can foster customer loyalty.
For instance, Yu Yong explained that Web3Auth collaborated with McDonald’s Singapore to launch the “Grimace NFT.” Holders can participate in games and activities, unlocking real-life rewards redeemable at McDonald’s locations.
“This approach not only incentivizes repeat visits to physical stores, but also strengthens the connection between the brand and its customers,” Yu Yong said. “As NFTs continue to evolve, they are becoming powerful tools for bridging digital and physical experiences, enhancing their appeal to both brands and celebrities alike.”
Yu Yong further remarked that the collectible aspect of NFTs still holds significant appeal.
“This is especially the case in fandoms or niche communities where owning the NFT itself serves as a badge of honor,” he said. “Utility-driven NFTs can help sustain engagement over time, keeping the NFT relevant and adaptable to future trends.”
Celebrities Join the NFT Movement
A number of celebrities have also launched NFT collections this year. For example, Yu Yong shared that Web3Auth partnered with “Collect Trump Cards” to launch an NFT series called “America First” Edition.
Yu Yong explained that Trump NFT holders can join Presidential candidate Donald Trump for a GALA dinner, creating a sense of exclusivity and interaction.
“Additionally, NFTs make it easier to bootstrap and sustain communities by token-gating them; only token holders can participate, which fosters a more dedicated and aligned community,” he said.
Caitlyn Jenner recently tokenized and auctioned her 1976 Olympic gold medal as an NFT on the Base blockchain. Sources have noted that NFT holders will receive a “deed” tied to the digital collectible.
Regulatory Uncertainty and the Future of NFTs
While it’s notable that brands and even celebrities continue to show interest in NFTs, unclear regulations may hamper adoption.
On August 28, leading NFT marketplace OpenSea received a Wells notice from the U.S. Securities and Exchange Commission (SEC), placing the company under scrutiny for potential securities violations.
“This undoubtedly raises questions about how NFTs are regulated in the US,” Yu Yong said. “Such incidents underscore the uncertainty that brands and celebrities face when entering the NFT space.”
Neil Mullin, CEO of Web3 consumer engagement platform Mojito, told Cryptonews that as regulations continue to evolve, brands must be able to navigate the changing tides.
“Web3 experts assisting brands in navigating the evolving digital asset regulations are crucial for ensuring compliant and sustainable development,” Mullin said.
Experts: NFTs to Thrive and Evolve
Challenges aside, industry experts think that NFTs will continue to advance. Yu Yong sees strong indicators for the continued interest of brands and celebrities in NFTs.
However, he added that the future of NFTs relies on three key elements: the climate of the crypto market, regulations, and innovation in user experience.
“The recent Wells notice issued by the SEC to OpenSea highlights the ongoing uncertainty in the regulatory landscape. Brands and celebrities will likely proceed with caution, awaiting clearer rules and frameworks,” he said.
Ben Illian, Co-Founder at Book.io – a Web3 marketplace for audiobooks – further told Cryptonews that the ability to mint and protect digital media on the blockchain will also lead to NFT adoption.
“For brands, this presents a transformative opportunity. Imagine Nike selling a sneaker that comes with a limited edition NFT of a Drake album, each with unique covers and unreleased tracks,” Illian said. “The possibilities are endless—NFTs have evolved far beyond just public images.”
