Digital Collectibles are not new, but they have only become mainstream in the past 2 years due to the astronomical rise of NFTs (Non-Fungible Tokens).
Digital Collectibles in the form of NFTs represent a paradigm shift because, for the first time in digital items, there is a programable limit on supply and built-in creator royalty sharing. This makes sure that even if the underlying image or file of the Digital Collectible is copied and pasted, they are still not duplicable because their metadata lives onchain and can't be changed.
What exactly are digital collectibles and how are they relevant to the world's biggest brands and businesses? Read on to find out.
What makes Digital Collectibles unique?
Digital collectibles, represented as NFTs, are unique blockchain assets. Each NFT is distinct and its ownership is verifiable. The verifiably limited supply makes it highly valuable if the collectible is deemed as valuable by collectors.
Beyond verifiably unique, Digital Collectibles also leverage NFTs' ever-changing features, such as serving as certificates to services onchain or in real life, self-updating features built into the smart contract, and built-in royalty rates for secondary sells.
Digital Collectibles also provide an opportunity for brands and businesses to create a new way to engage with customers and therefore a new stream of revenue.
Are digital collectibles and NFTs the same?
Primarily, yes. Digital collectibles are NFTs, combining digital ownership with artistic and creative expression. They are unique, indivisible, and cannot be replicated, distinguishing them from traditional digital items.
However, NFTs can also be university certificates, real estate deeds, tickets, or anything that the imaginations of creators allow. So it's more accurate to say that Digital Collectibles are NFTs, but NFTs are not exclusively Digital Collectibles.
Advantages of Digital Collectibles
- Authenticity and Ownership: Blockchain technology ensures the uniqueness and traceable ownership of each collectible.
- Global Access: They connect collectors and creators globally, transcending physical and geographical barriers.
- Financial Potential: NFTs have shown substantial financial returns for creators and collectors, redefining digital art's value.
Popular NFT Collectibles
There are some notable NFT Collectibles that have broken out from the Cryptoverse to the mainstream, here are some examples:
- CryptoPunks: Pioneers in the NFT space, CryptoPunks are 10,000 algorithmically generated characters. Each Punk has its distinct look and rarity, becoming a symbol of status and digital art CryptoPunks
- Bored Ape Yacht Club (BAYC): BAYC features a collection of unique ape-themed artworks. Ownership includes access to an exclusive club known for its high-profile events and intellectual property rights Bored Ape Yacht Club.
- Art Blocks: This platform is at the forefront of generative art, where each NFT is a unique piece of algorithm-generated art. Art Blocks showcases the blend of creativity and technology
- World of Women: Focused on diversity and representation, this collection features artistic depictions of women. It's a step towards empowering female artists and creators in the NFT space.
In the past two years, Digital Collectibles have broken out from only living onchain to permeating into real life. For example, Bored Ape Yacht Club organizes offline events that are exclusive to Collectible holders, such as ApeFest HK 2023.
These events not only bring the holders of these digital collectibles together to foster a sense of community but also provide exclusivity that only the most exclusive brands in the world could rival.
Additionally, these Digital Collectibles are rivaling IPs such as Pokémon or Disney - they are creating mainstream brand assets that were historically only available to Fortune 500 companies. For example, Cool Cat did a brand activation with Macy's for the Thanksgiving Parade in New York City and developed an exclusive line of merchandise sold in Macy's.
However, this is not the only shape or form that Digital Collectibles come in 2024 and beyond - established brands are also working on Digital Collectible activations, and we'll share a few below:
Brand Use Cases for Digital Collectibles
Digital Collectibles have found their way into the real world - as you will see in the examples below, digital collectibles have evolved from purely digital art collections to
- Loyalty Programs:
- airBaltic's Planes NFTs: The airline's integration of NFTs with its loyalty program is a pioneering move.
- Etihad Airways' Web3 Loyalty Program:: Etihad Airways employs blockchain for innovative loyalty programs, offering perks like status upgrades.
- NFT Rewards:
- Cinemark's Movie Club NFT Rewards: Cinemark integrates digital collectibles into its rewards program.
- Fan Experience Gamification:
- AC Milan's and Fanbloc: AC Milan's partnership with Fanblock in stadium tokenization exemplifies fan engagement, detailed in AC Milan and Fanblock's case study here.
Building Your Brand's Digital Collectible Campaign?
Why not start by getting some inspiration from what other brands have done? Check out more case studies from Crossmint here: https://www.crossmint.com/case-studies
Crossmint offers a wide range of NFT developer tools designed for developers and non-technical users, making NFTs accessible to everyone.
