On Wednesday, Starbucks SBUX, -0.67%, the famous coffee-chain, released 5,000 nonfungible tokens, called The First Store Collection. It’s a series of images that look like stamps. The company launched them on Nifty Gateway, a digital art online platform, and minted them on Ethereum scaling network Polygon.
The non-fungible tokens are priced at $100 each. This is around the same price of its previous NFT drop in March that offered just 2,000 NFTs and sold out within minutes.
Buying an NFT also earns users 1,500 points toward rewards within the Starbucks Odyssey app, which was launched by Starbucks in fall 2022.
Broader interest in collecting, trading, and making NFTs appears to have died down since its peak in 2021 and 2022, but big brands are still moving ahead with plans to launch them. Earlier this week, Nike NKE, -0.63% announced launching its first NFT drop on .Swoosh, the brand’s Web3 community branded as a place to co-create “the future of Nike” with its fans.
One of the reasons brands are pushing forward into launching NFTs is because it seems to work for their bottom line.
“Starbucks is venturing into web3 technology because they recognize its potential and are looking to tap into new user segments and revenue streams. Their first NFT drop, The Siren Collection Stamp, launched on March 1, 2023, sold out in just 18 minutes with a price of $100 each,” said Sara Gherghelas, a blockchain analyst at DappRadar.
“In the past 30 days, it has seen a trading volume of $195,000 and an overall trading volume of $561,000. The floor price for the collection is at $450, which is a 350% appreciation since the mint.”
Gherghelas said that it’s noteworthy that only 17.1% of the collection is currently on sale, indicating that holders of the tokens are not just looking to flip the collection, or buying with the aim of selling at a higher price.
“Regarding the coming second drop, it is expected to have a similar impact, especially as they are also rolling out a series of benefits for beta users on April 24,” said Gherghelas.
Brands are using NFTs, which serve as a certificate of authenticity as well as a collectible, as a way to build loyalty with their fan bases.
“The introduction of NFTs in their loyalty program has the potential to build a deeper relationship between the brand and customers, providing them with a new way to engage with the brand and earn rewards,” said Gherghelas.
The market for NFTs broadly though has slowed, with trading volume approaching $1 billion and 2.96 million in sales, DappRadar shared. This is far from a high of $17 billion in January 2022.
Starbucks did not immediately respond to a request for comment.