NFT 2.0: The Bridge for Brands to Web3, Connecting with Consumers and Amplifying Real-World Impact

Author: Victor Zhang, CEO and Founder of Smart Token Labs

The speculative fervor in the NFT market has reached its peak, while we are now innovatively prepared with foundational technologies that empower mainstream brands and meet new user connections and demands.

This time last year, an NFT player could acquire a Bored Ape Yacht Club (BAYC) ape for around $300. In contrast, today even the cheapest ape-themed NFT requires at least $300,000. Conversely, "blue-chip" projects like Cool Cats have seen their market value halved over recent months—dropping from a historical high of 16 ETH to under 5 ETH.

The strength of top-tier NFTs lies in their branding. Undeniably, membership in communities such as BAYC or World of Women (WoW) signifies distinct identity and status among NFT holders. The NFTs people hold—as profile pictures (PFPs) or digital license plates on virtual cars—project powerful brand affiliations.

In the next wave of NFTs—NFT 2.0—we will witness exciting innovations from leading NFTs: expansion into the metaverse, gaming, and collaborations with IRL (in real life) mainstream brands.

Even more intriguingly, we may see many mainstream brands boldly entering this arena. Moving beyond empty promises of "utility," we will achieve breakthroughs in NFT technology applications, with the core focus on empowering users to better engage with the brands they love.

Delivering Real Utility

To date, utility has often included promises of services, future airdrops, or income-generating NFTs in upcoming games.

In some cases, utility gets conflated with unrealistic verbal commitments. To realize the promised value of NFTs, it is essential to grant NFT collectors rights beyond mere asset ownership.

Nifty Tailor was created precisely to restructure NFT utility and generate ongoing value for NFT collectors. While Bored Ape (BAYC) and Mutant Ape Yacht Club (MAYC) holders may be excited about exclusive perks offered by partner companies, ownership benefits should extend further. Nifty Tailor launched the first-ever verifiable on-chain NFT derivative collection, allowing BAYC and MAYC holders to create derivative NFTs based on their original assets. Beyond personalizing NFT fashion outfits, holders can also earn royalties from secondary market sales of these derivatives. Nifty Tailor not only provides collectors and creators with opportunities for derivative revenue but also enables mainstream brands to enter the NFT space without the burden of launching their own NFTs.

Perhaps the consumer value of a Cool Cat or pixelated stoner isn't immediately obvious to traditional Web2 users. However, as more brands like Nike, Adidas, and Asics make similar moves into NFTs, it's clear they've recognized the value of digital assets. It has become evident that for NFTs to deliver meaningful utility to both Web2 and Web3 consumers, brands must rethink how tokens represent value and how they present that value to users.

Rethinking Tokens

The key to extracting value from NFTs lies in treating them as more than static images. Although the Cambrian explosion of NFTs has lasted just over a year, we can already foresee countless potential use cases. From healthcare and passports to real estate and art authentication, NFTs have limitless application possibilities. To ensure NFTs truly empower users and fulfill their promised utility, builders must reconsider what these tokens represent, offering benefits that meet user needs and spark genuine interest. For NFTs to deliver tangible utility, there must be direct, practical applications—especially clear, vertical, real-world benefits tightly integrated with Web2 user experiences, rather than theoretical promises.

Smart Token Labs believes tokens will form the foundation of the Web3 future and serve as bridges across worlds. To this end, the team has built extensive partnerships to help Web2 brands launch their own NFTs and strategically develop digital products. A prime example is event ticketing: Smart Token Labs has partnered with several high-profile event brands, including FIFA World Cup, UEFA Euro, and Ethereum Foundation’s DevCon, issuing proof-based derivative NFTs as entry tickets. Additionally, event websites can recognize NFTs in attendees’ wallets and provide specific event opportunities based on the type of NFT held—streamlining the cumbersome process of purchasing and carrying physical tickets, while giving users greater control over managing, transferring, or holding their assets.

NFTs as the Gateway to Web3

Some blockchain enthusiasts argue aggressively that Web3 can only succeed if Web2 collapses. While purists may hold such views, the reality is that integration between Web3 and Web2 will ultimately prove most effective and successful.

So how can Web2 seamlessly interact with Web3? Surprisingly, the answer may lie in NFTs. Despite currently limited use cases, the potential of NFTs should not be underestimated. Beyond animal-themed NFTs, one critical feature of these tokens stands out—verifiable ownership. Recognizing the importance of ownership allows us to envision broader scenarios—from provable identity verification to something as simple as car ownership.

Although many in Web2 remain skeptical about the future of NFTs, once Web3 consistently demonstrates value to Web2 audiences, NFTs will inevitably become the preferred gateway for users to enter Web3.

Carla Chan’s recent collaboration with La Prairie exemplifies how NFTs can successfully bring mainstream Web2 brands into the Web3 ecosystem. Two major brands from different fields joined forces to issue a unique NFT that drives real-world social good. Designed around the 31 most populous cities worldwide and linked to real-time weather data, each NFT offers dynamic artwork to its holder. More importantly, proceeds from the sale of these NFT artworks will support glacier conservation efforts in Switzerland—proving that NFTs can simultaneously create positive, tangible impacts in off-chain lives.

Conclusion

The NFT market has yet to unlock its immense underlying potential. Of course, the emergence of new projects, impressive or even massive trading volumes, and active, highly engaged communities are encouraging developments. Yet what’s even more exciting is the boundless future of NFTs. Current NFT iterations have already demonstrated that verifiable ownership holds far greater value than previously imagined. The next evolution of NFTs—what some may call NFT 2.0—will show everyone that tokens can fundamentally transform our approach to every vertical aspect of life, from marketing and healthcare to everything in between. As more Web2 brands and companies enter this space, the most crucial factor will be having clear guides to Web3 who can help them fully understand the implications and processes of launching NFTs and associated marketing strategies, deepening their understanding of tokenization.