Crypto have witnessed tremendous growth in popularity in recent years and are now regarded as a promising investment prospect. However, they have more potential than just for private transactions and investments.
Several businesses are thinking about creating their own in order to stay competitive and benefit from the unique advantages that come with this cutting-edge technology. Today, we’ll discuss the benefits of creating your own business tokens in this post, including how it might differentiate your organization from competitors and bring in more customers.
We will also examine the potential advantages and disadvantages of token/NFT production and explore cases of traditional businesses that have actually benefited from the blockchain technology.
Potential Benefits
Unique Value Proposition
By developing your own token or NFTs, you may create a distinctive value proposition that distinguishes your company from rivals. Your tokens might provide special advantages or features that users won’t find elsewhere. For instance, let’s imagine you manage an online store with a focus on ethically and sustainably sourced goods. You might develop a tokens that compensates users for making ethical decisions. Customers might receive rewards for, among other things, purchasing goods with little or no packaging, recycling or using reusable items, and reducing carbon emissions. This would create a unique value proposition that sets your business apart from competitors.
Increased Loyalty
A token or NFT can help you build a loyal customer base that appreciates your products or services and is motivated by your success. You can encourage customers to keep using your product or service by providing them exclusive advantages in your company. A good example of this is Starbucks, the world’s most popular coffee chain, which has launched a Web3 loyalty program named “Starbucks Odyssey” in December 2022.
The program gives its customers the opportunity to earn digital collectible assets (NFTs) ranked by rarity and deployed on the Polygon Blockchain. In exchange, customers must participate in various real-world activities, such as trying a new type of coffee or a new product. As well as in-app activities like completing quizzes and puzzles on the Starbucks universe.
The more NFTs and points are collected on Starbucks Odyssey, the more users will be able to access exclusive digital or physical experiences. Among the experiences announced by the brand, there are online barista classes, event invitations, trips to the “Starbucks Hacienda coffee farm” in Costa Rica, or access to limited merchandise and artist collaborations.
Moreover, the company is building its own marketplace called “Odyssey” to let people trade their NFTs on it. The good thing to note is that a share of the revenues on the Odyssey marketplace will be donated to charity.
Unlike many other traditional businesses that created an NFT collection during the previous bullrun to simply ride the wave, Starbucks seems dedicated to their vision of creating a real web3 ecosystem.
As we move forward, we are likely to see more and more traditional businesses leverage the power of blockchain to strengthen loyalty of their customers. If this is a topic that interests you, we highly recommend watching this short Youtube video that explains the Starbucks Odyssey project in more detail:
Lower Transaction Costs
Cryptocurrencies can offer lower transaction costs compared to traditional payment methods, which can make your product or service more attractive to customers. Let’s imagine that you are the owner of a remittance company that enables cross-border money transfers. can provide less expensive transaction charges than conventional payment options, increasing the allure of your business to clients. Your service would become more competitive in comparison to other remittance providers if you developed your own tokens to further down transaction costs. Even tech giants, like PayPal, implemented “crypto checkout” in 2021, allowing consumers to use tokens to process payments.
Innovative Branding
Launching your own token will enable you to create a strong branding. It might demonstrate how open to embracing new technologies your business is. For instance, in 2017 the multinational fast-food chain Burger King has introduced WhopperCoin, its own token. By buying Whopper burgers, customers could acquire WhopperCoins, which could then be used to buy other things on the menu. With this commercial and marketing operation, Burger King has demonstrated its ability to ride the trends and use emerging technologies to strengthen their branding.
Increased Access
A tokens can make your product or service more accessible to customers who might not be able to use traditional payment methods or have access to financial services. For example, Abra, the mobile wallet and tokens exchange, allows people to send and receive money with crypto, without the need for a traditional bank account. By creating your own token, you could tap into this market and offer financial services to people who might not have access to them otherwise. There are a lot of ways for your business to benefit from launching a token, but it’s also important to be aware of the potential risks.
Potential Risks
Regulatory Issues
Tokens are still largely unregulated in many countries, and governments are still trying to determine how to approach them. This lack of regulation could pose risks for businesses that create their own tokens.
Security Concerns
Creating a tokens requires storing sensitive information, such as private keys and wallet addresses. If these are not properly secured, they could be vulnerable to hacking and other security breaches.
Volatility
Tokens can be highly volatile, with their value subject to sudden and unpredictable changes. This could pose a risk for businesses that rely on a stable currency for their day-to-day operations.
Lack of Adoption
Despite the growing popularity of tokens, they are still not widely adopted by the general public. This could pose a risk for businesses that create their own , as there may not be enough people willing to use them.
Final words
By providing distinctive value propositions, boosting loyalty, reducing transaction costs, enabling creative branding opportunities, and expanding access to financial services, creating your own tokens can provide your company a competitive edge. However, before choosing to pursue this technique, it’s crucial to consider the advantages and disadvantages that could arise. One significant benefit is the availability of no-code platforms today, which enable consumers to build their own tokens without any programming experience. For more information, see our other article on “Creating a token for your business: A step-by-step guide”. These technologies make it more simpler and more convenient for businesses to profit from what is on offer. We should expect tokens to become even more commonplace as technology advances, and companies that adopt this technology early may gain greatly. You may distinguish your company from rivals, encourage client loyalty, and possibly provide more affordable and accessible financial services by starting your own tokens right away.
