Mainstream Companies Urged to Reconsider Early Adoption of NFT Loyalty Schemes, Says Tech Entrepreneur
Juan Otero, CEO of Travala, suggests that mainstream companies rushed into using non-fungible tokens (NFTs) for loyalty programs prematurely, noting that Web3 companies hadn’t yet optimized NFT use in such programs.
The failures of these NFT-based loyalty programs, conducted as separate trials instead of integral parts, have negatively impacted NFTs’ reputation. Otero advocates for integrating crypto or NFT rewards into free memberships to enhance user engagement and rewards attractiveness.
Regarding the NFT market and metaverse, Otero sees ongoing potential despite a cooldown in interest post-2022. He believes the current crypto market rally may reignite interest in utility NFTs, emphasizing ongoing innovation to leverage NFT technology effectively. The challenge lies in creating a compelling metaverse experience at scale without hefty initial costs, a task that successful models in Web3 could accomplish, potentially bringing mainstream companies back into the metaverse landscape.
Clever Robot News Desk 17th June 2024
