Starbucks Suddenly Halts Odyssey Program: Its NFTs Plummet in Value, Polygon Sponsored $4 Million
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Starbucks Suddenly Halts Odyssey Program: Its NFTs Plummet in Value, Polygon Sponsored $4 Million
or may be related to multiple factors such as low user engagement and a sluggish NFT market.
Navigating Web3 tides with focused insightsBy Nancy, PANews
As the NFT market hits rock bottom, Starbucks has announced it will discontinue its Odyssey NFT program, launched less than two years ago. Meanwhile, Polygon Labs has reportedly paid Starbucks $4 million to fund the loyalty rewards initiative, helping it beat out competitors to become Starbucks’ blockchain partner. The abrupt end of Starbucks’ NFT venture may stem from multiple factors, including low user engagement and a struggling NFT market.
Rolling out new membership experience as most Odyssey NFTs suffer severe depreciation
Last week, Starbucks announced it would terminate its pilot-stage Odyssey NFT program and shut down its Discord community by March 31. After the shutdown, users will still be able to trade their NFTs on Nifty Gateway.
Although Starbucks has not officially explained why it is ending the Odyssey program, Steve Kaczynski, head of the Odyssey community, hinted at the reasons in an interview with TechCrunch: “The NFT space may have declined significantly from historical highs. The Odyssey NFT program attracted over 58,000 active users, but most were not native Web3 users.”
Launched in the second half of 2022, Starbucks Odyssey aimed to integrate the company’s loyalty rewards program with NFTs to enhance customer experience, releasing multiple themed NFTs—many of which sold out shortly after launch. However, as the NFT market turned bearish, 27 Odyssey NFTs issued by Starbucks have widely suffered severe depreciation, with monthly trading volumes now amounting to only hundreds or thousands of dollars.
According to data from Nifty Gateway, as of March 21, floor prices for NFTs such as "The First Store Collection Stamp" have dropped over 82% from their $100 issue price; "The Starbucks® Green Apron Stamp" has fallen 86% from its original price; "First Store Collection" has declined 82%; "Holiday Cheer Stamp" has dropped more than 72.6% from its historical average; and "Going Places Journey Stamp" has plunged over 98% from its issue price. However, some series remain above their initial prices—for example, "The Siren Collection Stamp" is still up about 30% from its original price.
Nevertheless, Starbucks revealed it plans to launch a new membership experience in April. Steve Kaczynski also noted that the company is exploring new ways to unlock brand and loyalty program value, aiming to expand its rewards program further in 2024.
Polygon Labs provided $4 million sponsorship and acted as strategic connector
Polygon Labs significantly raised its profile through its collaboration with Starbucks. Starbucks previously stated that its decision was based primarily on Polygon’s advantages such as low transaction fees and scalability.
The partnership between Polygon and Starbucks was facilitated by Forum3, a digital collectibles company. Adam Brotman, one of Forum3’s co-founders and former Chief Digital Officer at Starbucks, later became a special advisor for Odyssey. According to CoinDesk sources, Brotman held discussions with Polygon, Solana, and others in early 2022, ultimately selecting Polygon due to technical considerations.
Unlike typical arrangements where companies pay tech providers for services, Polygon Labs was required to pay Starbucks $4 million to help fund the development of Starbucks Odyssey—a financial contribution that helped Polygon win the partnership over three other blockchains. Market speculation suggests that if major brands like Starbucks choose Polygon as their entry point into crypto, it could encourage broader adoption among other consumer-facing companies.
Notably, in Forum3’s $10 million seed funding round announced in 2022, Polygon Ventures was among the investors. Today, Forum3’s official website indicates the company—once focused on brand-driven digital collectibles—has pivoted toward artificial intelligence.
Moreover, according to a source familiar with Polygon Labs, high-profile partnerships with companies like Nike and Starbucks were remnants of previous leadership’s strategy. Ryan Wyatt, former president of Polygon Labs, led the Starbucks collaboration but departed following senior management restructuring at Polygon Labs in 2023. With key figures behind these partnerships leaving and Polygon shifting focus toward ZK technology, future priorities are likely to center more on technical innovation than brand marketing.
Starbucks’ exit from NFTs is not an isolated case. In the past, companies like GameStop, Meta, and eBay have also shut down or downsized their NFT teams due to concerns over market prospects and regulatory uncertainty—highlighting the significant challenges NFTs still face in achieving sustainable mainstream adoption.
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