Exploring the world of redeemable NFTs
An Upstream Up Close recap taking an in-depth look at redeemable NFTs
By Anastasia Samaras
This week, the Upstream team published the third episode of their new Twitter Spaces series, ‘Upstream Up Close’, featuring 10-15 minute conversations about NFTs, blockchain, and trading on Upstream. This third episode focused on redeemable NFTs, what they are, how other companies are positioning them, and the hurdles brands and consumers face.
Listen HERE to Upstream Up Close: redeemable NFTs
Leading the conversation was Vanessa, Upstream’s Head of Marketing, Amanda, Client Success Coordinator, Anastasia, and Fernanda, Digital Marketing Specialists, who shared their understanding of Redeemable NFTs and how Redeemable NFTs have come a long way since their inception.
What are redeemable NFTs?
Redeemable NFTs, a type of non-fungible token, offer unique perks or experiences alongside digital creations. They provide an added dimension of value for collectors, extending beyond the artwork itself. Artists and creators initially pioneered this concept, but now sports teams, brands, and charitable organizations are leveraging redeemable NFTs to engage their communities and reward supporters with unforgettable experiences.
We also see redeemable NFTs as the next generation of digital rewards programs, a way for brands to drive meaningful user journeys beyond an initial sale or interaction. Redeemable NFTs can be traded, interacted with, and held as a keepsake safely in a digital wallet.
During the episode, we explored success stories and friction points in the redeemable NFT space.
Key points discussed throughout the conversation:
- KryptoGO, a decentralized DeFi wallet company, launched one of the first redeemable NFT campaigns with 6,666 lucky bag NFTs, offering users the chance to win and redeem exciting prizes. But it is important to speak with counsel to determine if giveaways fall under the sweepstake rules and regulations.
- RTFKT, a digital fashion and collectible company, combined blockchain authentication, augmented reality, and physical product design to create digital fashion artifacts.
- Since Upstream is an Ethereum-layer 2 platform, we have the ability to export NFTs to Ethereum mainnet from your Upstream wallet and connect your Upstream Keystore to your MetaMask to access your NFT. From there you can add NFTs to a Metaverse, like Decentraland, and interact with your NFTs. This allows your avatar to wear or display your NFTs in a Metaverse.
- Jacob Ner-David — CEO of wine marketplace - Vinsent told Cointelegraph that he encountered some hurdles after launching two NFT drops tied to physical bottles of wine. According to Ner-David, although the project was successful, only a small percentage of NFT holders actually claimed their physical bottles of wine. Communication and the redemption process created some hurdles.
- Jeff Malko, who helped facilitate Lil Durk’s digital sneaker drop with physical sneakers tied to the NFTs launched back in March of 2022 which we previously talked about in our first episode. He acknowledged the challenges and made redeeming easier for users by allowing them to submit their shipping addresses upon purchase.
- While the concept of redeemable NFTs is intriguing, the logistics of redeeming NFTs for physical items or experiences can be a hurdle. Collecting personal information, like names or shipping details, from NFT holders can be tricky when transactions are primarily based on wallet addresses.
- The phrase doxing came up in conversation. Doxing refers to tying your real-life identity to your online identity. In the case of redeemable NFTs, users may have to share personal information like shipping details to claim their physical rewards.
- Balancing the need for privacy with the practicality of delivering physical goods tied to digital assets can definitely be a puzzle to solve. The concept of doxing may not be as relevant when we’re talking about NFTs for the general public. People outside the blockchain realm might not necessarily be concerned about the level of personal information being shared to interact with these digital collectibles.
- While privacy is crucial in the blockchain world, it’s also essential to consider the preferences and expectations of the wider audience when it comes to redeemable NFTs. As the NFT space evolves and reaches a broader audience, striking the right balance between privacy and convenience becomes even more important. It’s all about finding that sweet spot, where users can enjoy the unique experiences offered by redeemable NFTs while feeling comfortable with the information they need to provide.
How some NFT marketplaces handle redeemable NFTs
- Rarible has its users send an email to the creator of the NFT. The creator's email address is provided in the unlockable content. In your email, you’ll include your delivery address, your account information, and details about the NFT you want to redeem. After that, you transfer the NFT back to the creator. This step ensures that the NFT is returned to the original creator, who will then initiate the redemption process. Once the creator receives the NFT, your order will start processing. Typically, it takes about 1 to 3 days for the redemption process to begin. You’ll then receive a carrier tracking code for your parcel. This code serves as proof of delivery and allows you to track the progress of your redeemed product.
- OpenSea does it a little differently, putting the redemption process on the NFT creator. Users purchase the NFT they are interested in by connecting their digital wallet like MetaMask to the OpenSea platform. Once they have the NFT in their wallet, the user then visits the OpenSea website and connects their wallet, just like they did when purchasing the NFT. Then they’ll find a “Redeem” option. After tapping the “Redeem” button, users are directed to the website of the company or creator associated with the NFT. This is where they can redeem the item.
- NBA Top Shot has redeemable rewards that give collectors the opportunity to further connect with their favorite NBA moments and players. It adds a whole new layer of excitement to the NFT experience. With 48 Redemptions in total, featuring 3 per team, fans can curate their collection with the best moments from their favorite players and even mix in a Wildcard.
How Upstream handles redeemable NFTs
- Upstream approaches the fulfillment friction point by providing a clear call to action for the NFT holder, typically adding a step that links to the fulfillment in the NFT details. For example, if the company we’re working with already has a checkout process on their website, they can simply link our fulfillment API which allows the NFT holder to enter their redemption code at checkout. The fulfillment API then verifies the code is valid on the backend, and the user can then proceed with adding their shipping details similar to placing a standard order.
- If a company or brand doesn't have an integrated checkout process, we recommend brands to create a designated spot for NFT holders to enter their Redemption code, for example, a simple Google form.
- Directing NFT holders to complete a Google form after purchasing their NFT, allows a company to gather NFT holder’s shipping information, email, wallet #, and NFT ID. A company can then verify the NFT holder information against an internal list of the company’s NFT holder's wallet #’s and NFT IDs.
- This list of the company’s NFT holders is provided to them by Upstream and the company will receive immediate responses after the NFT holder completes the Google form. We have been very successful in this approach, and it guides the NFT holder to their next step!
Pioneering the future
Upstream, a MERJ Exchange market is revolutionizing the trading landscape by being the first regulated platform to offer both securities and NFT trading powered by blockchain technology. With an intuitive trading app, Upstream has simplified the process of creating, purchasing, and trading NFTs, making it accessible to seasoned traders and newcomers alike.
At the forefront of innovation, Upstream is spearheading the use of redeemable NFTs to create immersive Web3 experiences that forge stronger connections between brands/celebrities and their devoted consumers/fans. By blending the digital and physical realms, redeemable NFTs transcend boundaries, delivering unparalleled interactive engagement. These groundbreaking NFT campaigns go beyond the virtual realm, incorporating tangible elements such as exclusive items or extraordinary experiences, offering individuals an authentic and real connection to the intrinsic value of NFTs.
Redeemable NFT campaigns on Upstream offer exciting opportunities for discounted stays, valuable perks, and tangible rewards. From luxury property experiences to supporting a cause and receiving exclusive benefits, each campaign presents a unique offer.
Redeemable NFTs unleash a world of endless possibilities for brands, artists, and consumers alike. As various industries embrace this cutting-edge approach, prepare to be intrigued by an array of groundbreaking campaigns, memorable experiences, and exclusive perks. Upstream remains steadfast in driving this evolution forward, empowering individuals and organizations to unlock the full potential of redeemable NFTs.
Through a streamlined process on the Upstream trading app, users can easily redeem their NFTs for exclusive items or experiences. Once the redemption is complete, buyers receive a unique redemption code, which they provide to the respective company to claim the utility associated with the NFT. The redeemed NFT is then burned, and replaced with a commemorative NFT that can be cherished, traded, or used as irrefutable proof of ownership.
Word of the Segment: Metaverse
Our Upstream Up Close segment shed light on the metaverse, a concept that is shaping the future of digital interactions. A metaverse is a blend of physical and virtual reality.
A metaverse offers a dynamic environment where users can interact, collaborate, and explore through customizable avatars. In this virtual space, individuals have the freedom to purchase internet real estate, curate NFT media galleries, attend virtual events like concerts, and embark on virtual journeys, all while transcending the limitations of the physical world. A metaverse truly opens up a world of boundless opportunities for immersive and interconnected online experiences.
If you missed the episode or you’re interested in learning more about Redeemable NFTs, listen anytime, anywhere by clicking the link above.
As pioneers in the realm of blockchain-powered securities and NFT trading, Upstream has made it their mission to bring the immense potential of NFTs to the masses. Upstream’s user-friendly trading app has simplified the entire process, allowing anyone to effortlessly create, purchase, and trade redeemable NFTs with just a few clicks.
Join us as we continue to revolutionize the way we perceive and engage with digital assets. Stay tuned for our upcoming episodes, where we will unveil captivating insights, innovative campaigns, and remarkable experiences in the realm of NFTs. The future of digital ownership and immersive interactions awaits — be a part of it with Upstream.
Keep an eye out for our next episode!
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