Online store platform Shopify will enable brands to sell their licensed non-fungible tokens (NFTs) directly through their own storefronts. NBA team Chicago Bulls will be the first to put the feature to use and has launched its own NFT online store.
NFTs are frequently not sold directly through a brands’ website but instead through a third-party marketplace. Shopify’s solution enables brands to create their own storefronts for NFTs.
Third-party marketplaces provide less control to brands over the sales process and require them to direct consumers to another platform. Once brands decide to commercialize NFTs on one marketplace, they may have less control over the layout, advertising, and brand position, and it might not align with the company’s values.
Hence with Shopify, besides addressing these challenges, brand managed NFT stores enhance the relationship between the brand and consumers and help market the platform to their desired audience.
The NFTs launched by the Chicago Bulls will be the first officially licensed collection by the team. The Bulls Legacy Collection relates to the Bull’s six World Championship rings and features six token designs in three tiers of rarity. While supply lasts, the NFTs will be available for purchase from July 26th to the 31st. There will be additional opportunities for collectors to showcase their digital assets and earn prizes.
An additional feature is that the NFTs are randomly assigned to purchasers. Buyers can only uncover an NFT’s content and rarity once it is opened. Purchasers looking to resell the NFT for a profit will have to decide whether it is more valuable to sell it opened or unopened.
Topps MLB NFTs faced criticism about this aspect due to a miscommunication with consumers. Early pack openers uncovered the rarest packs while the WAX platform said the assignment was random.
Another NBA team, the Cleveland Cavaliers, recently launched their own NFT collection on the marketplace Foundation. As for the NBA, the league officially licensed NFTs through Dapper Labs NBA Top Shot. Dapper raised $305 million in late March at a $2.6 billion valuation and is rumored to be in talks to raise more funds at a $7.5 billion valuation.