Latest news: Starbucks announced Friday that it is discontinuing its NFT program as it “prepares for what comes next as we continue to evolve the program,” according to its FAQ page.
We spoke with program leader Steve Kaczynski on the Chain Reaction podcast last month.On Friday, he tweeted: his future with the company was uncertain:
Below is the original interview with Mr. Kaczynski from February 22nd.
While the NFT space may be down significantly from all-time highs, there can still be value for brands and loyalty programs looking to reach fans in new ways, he said. steve kaczynskico-author of the book “The Everything Token” and community lead for Starbucks Odyssey.
“Brand anchors” to gate areas such as rewards programs are something companies will expand on in 2024, he said. “I think we're going to see a lot of community-based brand building this year,” he said on TechCrunch's Chain Reaction podcast.
Starbucks launched Starbucks Odyssey in 2022 as its first foray into the world of Web3. The experience combines the company's Starbucks Reward loyalty program with NFTs to enhance the customer experience, TechCrunch previously reported.
“We can help people find their tribe,” Kaczynski said. “Starbucks He's on an Odyssey He's seen people in the community who live in California get along so well with people in Chicago that they even meet in person. Without Web3, none of this would have happened. Let’s go.”
The loyalty program has a five-tier system, with at least Level 1 having more than 58,000 active participants, Kaczynski said. “I promise you most or all of the people who are participating are not Web3 natives. He's not the only Web3 people who are participating.”
Kaczynski said those who reached the fifth tier of the program purchased “substantial amounts” from the secondary market. For example, Starbucks announced in December that it would send its top 20 participants to Costa Rica to visit the coffee giant's farms where the beans are grown.
There are other “third party utilities” developed through NFTs. This is done not only by large companies like Starbucks and Nike, but also by local companies who want to launch loyalty programs or use tickets as an asset that can be locked in and incentivized.
Mr. Kaczynski brought up the following example. Let's say that the food brand Hot Pockets runs a promotion where gamers get 20% off when they buy the brand's Fortnite skin and connect it to their cryptocurrency wallet. “The buyers are happy, the eaters are happy, they get discounts and they participate in the ecosystem,” he said. “This person is not just a gamer, but an active gamer who is actively participating and willing to spend disposable income on third-party products.”
When people think of NFTs, they often think of pictures of expensive monkeys on the internet, but to be fair, it's also part of the Bored Ape Yacht Club, but owning an NFT is worth more than that, Kaczynski says.
“Imagine going to a museum and seeing a beautiful painting on the wall. You can take a photo of the painting, but it's not worth the money. The painting on the wall is owned by the museum and is original. And it's worth the money because you can prove both,” Kaczynski said. Until recently, you couldn't do that with digital items, until NFTs came along.
Brands and companies buy and sell and “truly owning loyalty is a new concept where it's no longer a one-way street,” Kaczynski said. “Not all community members buy and sell, but I think it’s really important for many people to have that option.”
This story was inspired by an episode of TechCrunch's “Chain Reaction” podcast. Subscribe to Chain Reaction on Apple Podcasts, Spotify, or your favorite pod platform to hear more stories and tips from entrepreneurs who are building the most innovative companies today.
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