After a mind-blowing bull run, the next phase of life may not be as appealing to investors as before. Rather than building up a self-referential customer base, the breed ofcryptocurrencies raising now want to score more traditional customers. The lessons of the bull run are being preached to the startups.
Web3 startup Hang is looking to build up a client base of brands and help them use NFTs to replace their existing memberships and loyalty programs. Users will be able to buy and sell elite membership status, find the market value for the perks offered by loyalty programs and build a closer relationship with the brands they frequent if the startup's plan is realized.
There are better ways to solve real problems for brands with the use of NFTs and the block chain. This is a new way of shepherding a relationship between consumers and brands.
A new Series A funding of $16 million has been secured by the startup. Tiger Global and Good Friends are two of the investors. Music festival group Superfly is one of the earliest customers of the brand.
Adding a liquid market for the right to enter or exit a brand's loyalty perks is better for everyone. Hang wants to give users NFTs that they can level up by becoming a fan. By engaging with the brand, buying stuff or participating in events, users can upgrade their membership status, which will allow them to sell it to someone else with perks attached to it.
Users go to great lengths at the end of the year to reach the next level of airline status as a way to signify how much they value the service, and he wonders if more services could build this relationship and create better memberships for users. Most brand loyalty programs aren't that great and often just offer a way to more directly annoy a user through communications Increasing customer acquisition costs could push brands to rethink their approach and take a risk on NFTs, according to Smolin.
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