Brand Loyalty Platform NFT Hang Gets $16M From Paradigm

- Advertisement -


Cryptocurrency startups that have just completed a staggering bull run are gearing up for the next phase of life where the mere mention of “NFTs,” “DAOs,” or “DeFi” may no longer tempt investors as much as it used to. The breed of crypto startups now on the rise are looking to double down on acquiring more traditional customers rather than building a self-referential crypto customer base. These startups are forced to learn from the bull run and find the truth in the old foam.

- Advertisement -

Launch Web3 Hang is one such startup looking to build a customer base for brands and help them use NFTs to replace existing membership and loyalty programs. The startup hopes that, using blockchain, users will be able to buy and sell elite membership status, find market value for perks offered by loyalty programs, and build closer relationships with brands they frequent.

- Advertisement -

“By using NFT and blockchain, we can find much better ways to solve real problems for brands,” CEO Matt Smolin tells TechCrunch. “We really see this as a new way to forge new relationships between consumers and brands.

Smolin’s startup just received $16 million in a new round of funding from cryptocurrency venture capital firm Paradigm. Other investors include Tiger Global, Good Friends, Kevin Durant’s Thirty Five Ventures, Night Ventures Mr. Beast and Shrug Capital, among others. Some of the brand’s early clients include Budweiser, Bleacher Report, Pinkberry and music festival group Superfly.

- Advertisement -

Loyalty programs have existed long before blockchain, but Smolin believes that adding a liquid market for the right to enter or exit brand loyalty privileges is better for all parties involved. Instead of giving each brand its own cryptocurrency-backed points, Hang’s efforts are focused on giving users NFTs that they can boost by being a fan. By interacting with the brand, buying things, or participating in events, users can upgrade their NFT membership status, which they can eventually sell to someone else with the privileges they receive.

Smolin cites the huge effort users make at the end of the year to reach the next level of airline status as a way to show how they value the service. He wonders if additional services can build those relationships and create better membership programs. for users. The reality is that most brand loyalty programs are not that great and often just offer a way to spam the user more directly through communication. Smolin believes that rising customer acquisition costs will force brands to rethink their fundamental approach and may push them to take on the risk associated with NFTs.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox