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27 million people will soon have a chance to get an NFT for the first time.
Starbucks announced last week that it will be combining its loyalty rewards program with Web3 technology. The venture, called Starbucks Odyssey, will allow its nearly 30 million rewards customers to earn and purchase digital assets via NFTs as well as gain access to experiences and perks.
Of course, Starbucks' move into the blockchain means a lot more than collecting token-based freebies for drinking coffee. It signals the larger trend we’ve been following of brands making big bets that Web3 is the future for not only customer loyalty, but engagement overall.
We spoke with branding guru and Founding BFF Kat Cole in June about the emergence of big consumer brands in Web3 and here are some highlights from that conversation:
On her “aha” moment with Web3
"The minute I saw the PFPs and the collectible NFT projects, it was so obvious that that is something that could unlock and modernize loyalty, membership and rewards. So even if Web3 only brought loyalty, membership and rewards, think Starbucks points, Hilton points, your Kroger card, even if that became what it is, that would be a lot. But now being digitally commemorated and fully transparent on the blockchain, that was the next obvious use case to me for Web3 for consumer brands."
On brand membership and ownership evolution’s to Web3
"Both investing in a company and the idea of participating in an app or a digital membership program are a little bit of a black box. When we go to the blockchain, where every transaction and action is being validated by thousands of computers, it’s all transparent and traceable. It’s also transferable. Right now, I can't transfer my Starbucks card to someone else very easily.
The blockchain being fully transparent as a foundation, unlike the systems of the past, it layers on a digital commemoration of my membership and loyalty instead of having 30 separate apps on my phone. It becomes this discoverable and public, if I choose to be doxxed, archive of the brands and the projects that I believe in.
There are a lot of things in my wallet that I'm incredibly proud of and that I affiliate with and that are my tickets to membership programs and to loyalty and, what you could argue, as a modernization of loyalty programs. And for those that are connected to some value, it’s also owning a piece of something that is at the very beginning of having a value asset of some type."
For More: Kat Cole on the future of brand loyalty
It's complete. Ethereum, the second largest cryptocurrency by value, successfully completed the long-awaited update to its network, making it more energy efficient by as much as 99%. To the surprise of some, the price of ETH dropped some 10%. Meanwhile, the Proof of Work fork of Ethereum lost three-quarters of its value in the first 24 hours after the merge.
Crypto party lines. In a first for a crypto exchange, Coinbase added an integration to its app to allow its more than 100 million users to look up how legislators across the country are thinking about digital assets.
More than a JPEG. Popular NFT collection Doodles raised $54 million last week at a $704 million valuation in a funding round led by Seven Seven Six, Alexis Ohanian’s firm. Fun fact: While Ohanian got much of the praise for the deal, it was actually led by his partner, Katelin Holloway 💪🏽.
Failure to Launch. Launch House, a Web3 accelerator and community for tech founders, is facing allegations that women who joined were sexually harassed and assaulted with little to no repercussions for the abusers.
Not just jargon. Merriam-Webster has added “metaverse” as well as “altcoin” to the dictionary, a sign that they are taking seriously the role cryptocurrency will play in popular culture moving forward.
$70 million in NFTs. The proceeds of a $70 million art auction conducted by The Museum of Modern Art could go to expanding MoMa’s digital footprint with a collection of its first NFTs.
Fidelity brings crypto to Wall Street. The banking titan, alongside Schwab and Citadel Securities is launching a cryptocurrency exchange, following news that Blackrock is allowing its institutional clients to invest in crypto as well. Meanwhile, Fidelity is also considering permitting individual investors to trade bitcoin on its brokerage platform.
Giveaway alert! We want to treat you all to Bestie Summer Bundles. The bundles include Love + Chew Cookie Variety Packs, Athletic Greens Wellness Kits, and Candy Pool Floats.
To enter: Post a reel on IG, talking about this newsletter GM, BFF, answering ONE of these questions. 1. What do you like about GM, BFF? 2. What have you learned from it? 3. Can you explain a Web3 story or concept you heard about in the newsletter? Be sure to tell people at the end of your reel to head to mybff.com and subscribe! Also, make sure to tag @mybff and #gmbff in the caption. You have until 9/21 enter. US residents only. We’ll pick 10 of our favorite vids! Winners will be announced on our IG story.
Be First In Line. BFF Co-Founder Brit Morin is launching a new podcast called First In Line to help you learn about the next big trend or technology before it hits the masses. Because when you get in early, you get more opportunities.
Dot Dot Dot Media Co-Founder Laurie Segall was one of the first reporters covering the tech industry. Now she is looking ahead to how Web3 can disrupt the traditional. “This isn't just about this thing called the metaverse,” she told BFF. Read the full Q&A here.
Skimm Co-Founder and Co-CEO Danielle Weisberg stands up for progressive paid family leave policies from employers, while sharing her own story of going out on maternity leave. “Paid family leave is a lever that we can pull now,” she writes.
Defiant Founder Camilla Russo sits down with Justin Drake, a researcher for the Ethereum foundation, to break down the implications of the ETH Merge.
Congrats to Metagolden Founder Francine Ballard, who was nominated as one of the top 100 digital fashion influencers by Bryte Hall! Vote for your BFF here.
This newsletter and all the information in it does not constitute financial advice. If you don’t want to invest money or time in Web3, you don’t have to. As always: Do your own research.
Caroline Fairchild is Editor in Chief at BFF
