As more companies suffer from tariff instability, some executives, like Ridima Khan, Vice President of Business Development at Dapper Labs, see the encroachment on the cost of physical goods as yet another use case for blockchain-powered digital markets to shine.
«I see how many brands are rethinking where their revenues and fan engagement come from,» said Khan in an exclusive interview with Cointelegraph. «Many franchises, like those we work with — the NBA, NFL, Disney — have been successful in the digital collectibles space for many years, and we see many brands expressing interest in digital collectibles as a way to engage with fan bases at a time when physical costs are more risky and uncertain.»
By encouraging brands to take a deeper look at digital goods, we aim to better understand fandom. Now on Flow, there are sellable top moments like 'LeBron Dunk' or 'Steph Curry 3-Pointer,' which are in the NBA app, as well as commemorative NFTs tied to the best moments from NFL games in NFL All Day.
But with Super Bowl ticket stubs and other digital memorabilia powered by blockchain, digital goods prove they can unlock deeper fan experiences in real life (IRL), on the court or on the field.
«When you look at the amount of time people spend online or in a digital environment, it’s only increasing,» said Khan. «This really motivates brands to define where their fans spend time and where they can connect with them, where they are. It’s also a great way to simultaneously attract a more global fan base, as opposed to a more limited, geo-targeted approach that is more focused on a global fan base that wants to engage with these brands.»
As fan bases have become more globalized, the online experience simply offers a faster and more accessible environment for digital goods, especially collectibles, compared to the current physical goods market, which is hampered by mysterious tariffs.
«Average NFT sales increased by 7% compared to the previous quarter, with NFL All Day and NBA Top Shot generating $2.5 million and $5.6 million, respectively,» said Khan. «We also see that the total value locked (TVL) on Flow reached a record high of $44.4 million, led by protocols like KittyPunch and other markets that offer opportunities for next-generation investing and trading — a trend that signals the expansion of blockchain and cryptocurrency use cases beyond just NFTs.»
Helping to expand the use case for blockchain is the recently enhanced onramping and offramping technology that has permeated the entire industry, providing a smoother user experience for those starting to work in cryptocurrency and the world of digital goods than what was available three years ago.
As clearer blockchain regulations are established, companies that may have initially been skeptical about blockchain are now taking it more seriously, as regulators are taking it more seriously, helping to build trust in the technology, especially among well-known brands.
«IP-backed collections are winning,» said Khan. «Following the recent integration of Flow with OpenSea, NBA Top Shot has been among the top five most popular collections on OpenSea for four consecutive weeks. We’re diving into specific fan bases to understand user behavior and conducting A/B testing of our experience, which means the products we ultimately bring to market for fans are very carefully vetted to ensure they are truly what fans want.»
Khan and Dapper Labs CEO Roham Garregozlu invited a group of VIP collectors during the NBA tournament season for dinner and openly asked for their opinions on what they would like to see more of on the platform. This is kind of quick, efficient, real-world research and development (R&D) that can more easily influence the final product because the final product is digital.
Outside the internet, sports fans and media are limited by where they physically are when it comes to purchasing physical goods and where they can take that physical good. But Khan believes the next evolution of fandom is mobility.
«We love the concept of being able to take your most valuable items with you on your phone, wherever you are,» said Khan. «Being limited to trading in a physical environment is nowhere near as fun as being able to trade wherever you are, with people around the world.»
Moving forward, Khan believes brands will continue to expand their scenarios, engaging more with fans in digital spaces.
«Consumers will also be more willing to adopt new ways to interact with brands in digital spaces if there is a value proposition there,» said Khan. «If we can continue to provide fans with benefits from what they do in the digital space, and that what they do in the digital space benefits them in the physical world — that will be the recipe for success.»
