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Are luxury brands adopting Web3 technologies too early? As NFTs and cryptocurrencies are explored and metaverse and Web3 strategies are developed, there are concerns that the luxury fashion and beauty industry is moving too fast.
Recent declines in the crypto market are causing jitters as consumers balk at the lure of a rapidly oversaturated NFT market. And the metaverse is still in its infancy – experts warn that it will be years before we know of a decentralized “metaverse”.
Why Brand.eth is the new brand.com
Public Ethereum wallet names are similar to email addresses and Instagram IDs. As brands approach Web 3.0, they should think about making their presence in the metaverse their own.
Enter Web2.5, a new term – and a solution – quietly shared among executives facing pressure to switch from Web2 to Web3.
Web2.5 describes the reality of a transition period, according to Serotonin, a digital marketing agency that worked with Adidas and Sotheby’s to develop metaverse and Web3 strategies. “Brands always try to understand [Web3], and some of them feel uncomfortable with that feeling of not knowing,” says Claire Jencks, chief content officer at Serotonin. “But brands growing in this space are a little more open to experimentation.”
To allay potential concerns about the decentralized, community dream that is Web3, Serotonin has published a comprehensive report today that describes how the creative and media industries, as well as the consumer goods and food sectors, are successfully extending existing capabilities.
The report examines recent projects from Gucci Vault, DressX and Nike. In December, Nike acquired Rtfkt, whose digital assets “redefine the boundaries of physical and digital value,” according to the report.
Connecting Web3 assets such as NFTs to physical goods is a prime example of Web2.5, says Everett Muzzy, vice president of content at Serotonin. “The number of times Nike has rebranded itself slightly or changed its audience proves what an agile company it is. It’s not just about access, it’s about bringing in a whole Web3 audience. did it very smartly thanks to something like Rtfkt, which had grown natively into a very engaged and highly engaged Web3 native audience.
Web2.5 is a step on the way to Web3. Coinbase is one example, says Muzzy; it is a cryptocurrency exchange that allows people to trade web3 assets using web2 infrastructure like credit cards and fiat currency. It’s this combination of using Web3 assets with Web2 infrastructure that defines Web2.5, he adds.
The best of Web2 and Web3?
Web2 shouldn’t be abandoned, says Muzzy. “Web2 has been powerful for audience growth and retention. Web2 businesses can’t let go of their Twitter followers and email distributions or any of the ways they currently engage and interact with their customers – and I don’t think it would be prudent for them to consider that,” he says. “For Web3, we’re not asking brands to give up their audiences. with those existing audiences.”