The impact of the bear market and the FTX incident on the adoption of NFTs and the importance of rebuilding trust through ethical building practices were also discussed. Also, the need to focus on the specific problems that NFTs can solve and how brands can use them to achieve unique outcomes that couldn’t be attained through Web2 technologies. Examples of NFT use in industries such as fashion, travel, and hospitality were covered, as well as the potential for NFTs to be used in loyalty programs and marketing. The panel also discussed how to navigate education and communication in promoting the adoption of NFTs among brands.

Panelists include:

• Arun Sugumaran — CEO & Co-founder, AWST

• Novita Lam — Head of Partnerships & Ecosystem, AWST

• Lawrence Lin — Head of Blockchain, Razer

• Moderator — Cholo Maputol, CEO & Co-founder, Play It Forward DAO

How did the FTX incident affect your personal and institutional perspective on NFTs and crypto assets in the short and medium term, and how are you preparing for a future with potentially less trust in the system from users?

The focus should be on the use cases and problem-solving capabilities of Web3, and on educating customers about its potential

Lawrence: At Razer, the first two initiatives I pitched in 2021 were a carbon offset program and NFTs. However, the carbon offset program had to be put on hold until Q3 2023 due to the FTX incident and the collapse of Three Arrows Capital following the Luna (Terra) crash. Despite the challenges of the current bear market, I remain confident in the potential for NFTs and GameFi to be the next trend in enterprise adoption. That is why I joined Razer in the first place. While bear markets are always challenging, this one has been particularly difficult.

Arun: The recent turmoil in the crypto and equity markets, including the FTX incident, has led to some negative perceptions of Web3 technology. However, the focus should be on the use cases and problem-solving capabilities of Web3, and on educating customers about its potential. Despite the challenges posed by the current market conditions and the impact on retail investors, I am optimistic about the future of the market and the importance of rebuilding trust through ethical building practices that prioritise the customer.

What are your thoughts on NFTs as a tool to enable specific outcomes rather than a business model? How do NFTs differ from current Web2 technologies in this regard, and how do they allow brands to achieve unique results and engage with customers in new ways?

NFTs are a technology enabler. They are tools that enable various outcomes and have the potential for collectibility and intrinsic value

Lawrence: NFTs are a technology enabler. They are tools that enable various outcomes and have the potential for collectibility and intrinsic value. They can be used in various industries, including the gaming industry where they have seen early adoption and have the potential for mass adoption. I believe that the bear market is a good time for builders to focus on providing value with NFTs before the bull market begins. On the other hand, a bull market is not an ideal time to build a company as it moves too fast to keep up.

Cholo: I do resonate with that a lot. The focus shifts to examining the specific problems that NFTs can solve and how they can be used by brands to unlock achievements or specific outcomes. For Arun and Novita from AWST, you are particularly interested in the use of NFTs for brands. Can you share examples of how brands have used NFTs in innovative and unique ways to achieve outcomes that couldn’t be attained through Web2 technologies?

Novita: NFTs are being utilized in a variety of industries, including fashion. One example is when an e-commerce company launches their own NFTs, using a collection of digital avatars that align with people’s digital twin avatars or personalities. This can be used as a way to build upon existing loyalty programs, offering discounts and access to real-life events in the future. NFTs can also be a useful tool for emerging brands to reach a wider audience and have fun with their marketing efforts.

Arun: Refraining from discussing non-fungible tokens (NFTs) directly with clients and instead focusing on their value and cost-effectiveness in terms of building partnerships and launching products or services can be helpful. Using terminology such as “membership” or “a cheap way to start a partnership” can help to better communicate the benefits of NFTs to clients.

For instance, in the travel and hospitality industry, users may seek discounts and other benefits. In such cases, NFTs can be a cost-effective and efficient way to experiment with partnerships, go to market and increase adoption.

Cholo: NFTs have essentially been attached to just digital art for the most part of their existence. Like Bored Apes, Azuki, and other blue-chip NFTs. But as Arun mentioned, there’s a lot more diversity and richness, and what you can actually do. NFTs are essentially programs that can cross brand barriers.

What challenges have you encountered in introducing non-fungible tokens (NFTs) to your platform, particularly in regard to user pushback and onboarding, and how have you approached these challenges in a non-confrontational manner?

Don’t talk about technology. Sometimes just kind of having a conversation about what their problem is is a good place to start. Asking them, “How’s your marketing campaign going?”

Lawrence: One of the challenges we have faced in introducing NFTs to our platform is the need to consider the needs and constraints of the enterprise and approach them in a phased manner, starting with the “lowest hanging fruit.” We have also encountered backlash from legal and compliance teams, leading to the decision to put the project on hold. Another challenge has been finding reliable partners in the blockchain and NFT industry and seeking out new and innovative use cases for NFTs that have not been explored by other companies. It is important to factor in the difficulty of finding good partners in this industry when seeking partners to work within it.

Arun: NFTs can be used as a tool to enable partnerships and other business ventures. These non-fungible tokens can be attached to various items, such as a boarding pass or a hotel room key, to unlock discounts and other perks. I believe that NFTs are a faster and cheaper way to go to market compared to building a mobile app. Brands are responding well to this approach. However, using alternative language to describe NFTs, such as “membership” or “cheap way to start a partnership,” could allow brands to be more receptive to new technologies.

Don’t talk about technology. Sometimes just kind of having a conversation about what their problem is is a good place to start. Asking them, “How’s your marketing campaign going?”

For example, if a juice bar wants to work with gyms to build an app for users to redeem a free drink at the juice bar, we will ask the client, “Have you thought about digital membership, where users can redeem discounts instantly?” I think that’s one way to start. Just not talking about NFTs and talking about usability.

How can brands and enterprises protect the value of their user base when introducing NFTs, and how can they ensure that they are not giving away their user base for free when using NFTs as a marketing strategy?

Consider the long-term value of building a community, rather than simply focusing on short-term gains. Both Web2 and Web3 brands can also use NFTs to enhance their user base and user experience

Lawrence: One approach is to negotiate with blockchain partners to ensure that the value of the user base is protected. This can involve discussing revenue and profitability, as well as ensuring confidentiality. It is also important to choose partners who have a track record of success and credibility in order to minimize the risk of failure.

Arun: Another approach is to consider the long-term value of building a community, rather than simply focusing on short-term gains. Both Web2 and Web3 brands can use NFTs to enhance their user base and user experience, and customers are generally savvy enough to recognize scams and ignore unwanted communications. It is important to be cautious and do thorough research when introducing NFTs, but it is not a problem unique to the Web3 space.

How can someone just start out in the Web3 space, whether as a brand, builder, or simply interested individual, approach learning and navigating the complex and multifaceted aspects of Web3?

To fully understand and work with new technology like Web3, it’s important to get hands-on experience and understand the technology thoroughly. This involves ignoring any unnecessary noise and focusing on learning the tech.

Novita: When working with a mass audience that may not be familiar with Web3, it’s important to choose a streamlined process and use easy-to-use tools to simplify the experience for users.

Arun: To fully understand and work with new technology like Web3, it’s important to get hands-on experience and understand the technology thoroughly. This involves ignoring any unnecessary noise and focusing on learning the tech.

Lawrence: I always think of it as what does this technology solve? What is the root problem? What opportunities will this technology unlock?

For instance, for NFTs, it offers flexibility and ease of transfer, allowing for the reselling of online certificates on a secure and transparent ledger. From there, you can start to think out of the box.

Give us a one-liner, something the audience can take back tonight!

Cholo: Web3 is a tool, it’s not a business model. Unless you’re an exchange.

Lawrence: Next year is going to be a tough one, I hope you all survive, see you guys in the following year when everything is good. All the best!

Novita: Don’t stop learning, the Web3 space has a lot of opportunities.

Arun: Don’t let your kids teach you Web3. Teach your kids Web3. Don’t be afraid of it basically.



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