So… what’s a Non-Fungible Token NFT and should you care?
NFTs (non-fungible tokens) are a special kind of cryptoasset in which each token is unique. This is very different to fungible assets like Bitcoin, US Currency (dollar bills) and such, which are all worth exactly the same amount. Because every NFT is unique, they can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets.
And, as it turns out, NFTs can represent Food and Beverages through fandom/support and driving engagements through videos and graphics. Let’s see how that works.
How about food? As it turns out, a big YES!
Pringles is a great example: Per Deb Gabor, CEO of Sol Marketing – “Pringles released 50 NFTs of a video of a not real flavor called CryptoCrisp. All the money raised went to the artist who created the video, while Pringles got all the publicity.”
”This is a way to take a brand and have it transcend the actual product which for [Pringles] is a can…” – Deb Gabor, CEO, Sol Marketing
In simpler terms, this is pretty much like people wearing shirts, or whatever, with a brand logo. NFTs are a way for people to demonstrate support/evangelism for a product. It’s also a way to drive engagement.
“NFTs are quickly gaining steam among those in the digital world. In fact, the market value for NFTs tripled in 2020, reaching $250 million. During the first quarter of 2021, NFT sales exceeded $2 billion.” – Food Processing
This phenomena is gaining momentum in the F&B world at a pretty fast rate. For instance Taco Bell released NFTs of animated tacos, and Pizza Hut Canada released one that’s a digital image of a slice.
Is this a joke or is there any money in Non-Fungible Token NFTs?
Pizza Hut Canada has announced it is releasing “1 Byte Favourites,” (mostly sold out already) aka digital images of pizza, as non-fungible tokens.
“Pizza Hut believes no world should exist without pizza, especially their pan pizza. That’s why they wanted to make sure it was enshrined in the digital universe,” they said in a release.
Each week the company will release a new image of a pizza slice, each of a different recipe, for purchase on Rarible.
Note: The first-ever “slice” was listed for $0.0001 ETH (a cryptocurrency the equivalent of 18 cents), but wound up being sold for $8,824.
What can you do with NFTs once you buy them?
The metrics of how this works is way past the scope of this article unfortunately. I have never used these folks but this link would be a good starting point to investigate: Coincast. Simply, you can display your digital artwork of course and others if so inclined. Most, however, buy and sell to make a buck or two. Sometimes a lot. Sometimes not.
If you’re looking to be a food industry adopter, consider keeping tabs on NFTs, in particular who’s doing them, how much they’re worth, and why they’re becoming so popular. Good luck!
Resources:
https://www.qualityassurancemag.com/article/token–marketing/
https://www.foodprocessing.com/blogs/working-wit/fyi-on-nfts/
https://www.coinbase.com/learn/crypto-basics/plp-what-is-nft
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