Cerveza Tecate creates NFT's for its Pa'l Norte music festival and they sell out in minutes The NFT's are part of the marketing strategies of brands with increasing frequency. These come loaded with lifetime experiences for their owners.
By Entrepreneur Staff •
This article was translated from our Spanish edition.
Suddenly everyone is talking about NFT's. A concept that still seems abstract and difficult to understand to many is beginning to become popular and gain presence in the world, even as part of the digital strategy of brands . A few days ago Tecate Pa'l Norte , one of the largest music festivals in Mexico, announced the creation and sale of NFT's (non-fungible tokens, that is, cryptographic assets that represent something unique) created specifically for the event and loaded with lifetime benefits for those who decide to buy them.
Today, NFT's sold out just a few minutes after going on sale.
The festival is celebrating its tenth edition and to celebrate it, it created 1,000 commemorative pieces of the festival that will be held on April 1 and 2 in Monterrey, Nuevo León, in northern Mexico. Among the benefits included with the NFT's are lifetime backstage passes for the owner of the digital asset and five friends, catering service with food and drinks, access to luxury bathrooms and double tickets for future editions of the festival, in addition to other things that have not yet been revealed.
All the NFT's of Pa'l Norte show the image of the same lion, but always with different designs. The original price of the pieces was 0.04 Ethereum (equivalent to $106 dollars) and they sold out in minutes. Assets could be purchased using MetaMask, a browser plugin that allows interaction with Ethereum apps. Now the NFT's can be bought for resale in the OpenSea NFT marketplace, although an increase in their value has already been reported and they are now trading at up to 100 Ethereum (about $267,352 dollars).
The rise of NFT's will cause us to see more and more frequently their incorporation into the marketing strategies of various brands. Companies that have already done so successfully include Acura, Papa Johns, the Grammys, Duke University, Wrangler and the Coachella festival.
HOW DO NFT'S ACQUIRE THEIR VALUE?
Although it can be complex to understand, the key and the value of NFTs lies in the digital certificates that allow the authenticity of a work to be proven . The sales of these digital assets are recorded in block chains or blockchains that contain information about the ownership of the piece and the history of prices and transactions linked to them. What characterizes the NFT's is that they are unique, indivisible, transferable and it can also be shown that they are scarce. To create an NFT it is necessary to "mint" it, that is, convert it into a digital asset on the blockchain , which can be done in some NFT Marketplace OpenSea , Nifty Gateway and Rarible .
