Budweiser Sells Out Of First NFT Offering, But What Did Collectors Actually Buy?
by Rudy Sanchez on 12/03/2021 | 3 Minute Read
The rapid rise in cryptocurrency interest and market value has everyone looking for ways to leverage the hype around the technology and get a taste of the profits that some of those crypto investors have seen in the last two years.
Driven by FOMO and old-school greed, multitudes of token projects are coming out of the woodwork and powered by the same technology behind coins like Ethereum. Tokens are like coins, except they can get customized to function in specific ways. One type of token riding the hype train are NFTs, i.e., Non-Fungible Tokens. They are unlike other tokens or coins on the blockchain in that they can not be duplicated or exchanged one-for-one. This functionality is particularly useful in the art and collection world, as proof-of-ownership and authenticity can be verified with a high degree of confidence, as blockchain records are distributed and can’t be destroyed or edited by anyone. Artists aren’t the only ones releasing NFT to sell art; brands are getting in and offering digital collectibles.
Budweiser is the latest brand to enter the NFT space, putting up a collection of its most memorable can designs. The compilation, called “Budverse Cans Heritage Edition,” quickly sold out, and the purchase of a Budverse NFT also includes vague “Budverse” perks that aren’t apparent on the NFT product page (we've reached out to Budweiser's PR team, and we're waiting to hear back).
These Budverse exclusives seem to be the only real perk that comes with owning a heritage can NFT. Owners of the tokens do not own the can design, and according to the terms of sale, purchasers of Budverse NFTs agree to certain ownership conditions, which includes complying with AB InBev’s “Responsible Marketing and Communications Code.” Many of the requirements are meant to discourage underage and irresponsible drinking. Reasonable restrictions, to be sure, but the implication here is that owners of Budverse NFTs own a digital receipt, some “Budverse perks,” and agree to let Budweiser tell them how they can display, use, or resell their NFT.
Cryptocurrency items like NFTs are new, and as is often the case, individuals and firms are experimenting and playing in a technical space vaguely fenced in. Regulators, legislators, and case law are still behind and playing catch up. It’s critical to read the fine print before purchasing a token, lest you end up agreeing to let a brand control how you use “your” NFT.