Non-fungible tokens were at the center of the 2021 bull market. During that time, we saw lots of top brands, such as Gucci, embrace Web 3. However, things paused in 2022 thanks to the bear markets. Statistics show that NFT sales decreased by 83% in 2022 compared to the previous year.
Interestingly, Starbucks entered the NFT market late last year. The company launched “Starbucks Odyssey”, which is an expansion of its rewards program that allows customers to receive benefits for making and buying coffee. As well as taking online games and quizzes. Starbucks NFTs have since proven to have huge potential. Let’s discover why.
What is Happening with Starbucks’s NFTs?
In March, Starbucks released a batch of 2,000 Starbucks NFTs, which quickly sold out for $100 each. The Starbucks website briefly crashed as a result of the flurry of activity. Starbucks refers to its NFTs as stamps,” and these stamps have become popular among the company’s lovers.
Every person that minted a Starbucks Odyssey digital stamp is in profit.
With only 0.42% of its 100 million customer base holding its NFT, the upside potential is huge.🧵(1/9) pic.twitter.com/PggDuCImT8
— S4mmy.eth (@S4mmyEth) August 2, 2023
Ethereum enthusiast S4mmy.eth recently shared a thread showing how successful and lucrative Starbucks’s NFTs are. About 0.42% of Starbucks’ 100 million customer base holds NFT. But there’s huge potential.
As of August 2, Starbucks NFTs had a total floor market cap of $9.4 million. About 211,000 NFTs have been minted. In addition, there are 42,000 holders. The Starbucks NFTs holiday cheer collection has a floor price of $745.
Coffee meets NFTs: Starbucks’ Green Apron collection gains traction as buyers hold on to their unique digital collectibles. The NFT floor price is higher than the mint price, showcasing confidence in the collection’s potential. #StarbucksNFTs #DigitalCollectibles
— keyblade.eth (@KeybladeEth) August 4, 2023
Starbucks’ newest collection, The Green Apron, was recently minted at $100. In addition, the Siren collection reportedly has a sale every few hours for $300. Despite being minted five months ago, it still trades at three times its mint price. This is a better performance than most NFT projects.
Why will these NFTs succeed?
People minting these NFTs are in an unrealized profit position because the NFT market recognizes the value of holding the NFT as greater than the mint price. One of the factors behind the Starbucks NFTs is that Starbucks has an audience that resonates with its program. The NFTs have utility.
These NFTs are used to capture customers’ experiences. And Starbucks plans to roll out more collections to reward user experiences. We can conclude that Starbucks provides a “flourishing ecosystem that’s entwined with a consumable product that the existing user base loves: coffee.”
In summary, here are four reasons why Starbucks’ NFTs will succeed:
- Convenience: NFTs could be complex. But Starbucks has made its collection pretty easy to understand and learn. Starbucks users already understand how this NFT ecosystem works.
The process of getting started is straightforward:
- Register your interest in the Odyssey program.
- Set up an account using an email or crypto wallet.
- Get the Stamp (NFT) with either fiat or crypto.
2. There are a variety of rewards available for users.
— Myntr (@myntr_io) August 3, 2023
Some of the available rewards include
- Limited-edition merchandise
- Access to experiences
- Connecting with other users
Starbucks’ introduction of the NFT stamp series, which could be used as an example by other brands, has successfully introduced a new marketing strategy. Aside from being another revenue source for the company, it also mirrors the popularity of blockchain technology.
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