Brands that failed in Web3 didn’t ‘jump in the water’
Gabriel Giancola, founder and CEO of KEB, believes that brands that have failed in their Web3 efforts haven't given it enough time or resources.
In a Cointelegraph interview, Giancola explained why some legacy Web2 brands fail with their Web3 projects and how others succeed with their blockchain-based labor.
Failing businesses were simply dipping their toes.
On July 18, researchers argued that brands can use Web3 technology to enhance their loyalty programs. A paper published by Polygon Labs, Google Cloud and Accenture argues that the Web3 experience-based economy offers business opportunities.
Despite the many potential benefits, some Web3-based businesses' efforts have been stymied. For example, Singapore-based travel services conglomerate Trip.com wound up its Trekki nonfungible token (NFT) project, prompting backlash from the community.
According to Giancola, brands that moved to Web3 as a “side project” didn't put enough time, investment or capital into properly testing the technology. The executive believes that these brands have not been committed to reaping the true benefits of blockchain technology. He explained.
“Others who did it more as a side project, were just dipping their toes. They didn't go swimming. They didn't just jump into the water and say let's swim.
Giancola also shared a story about how his company can get calls from banks on a crypto credit card partnership that helps brands launch Web3-based loyalty programs every time Bitcoin (BTC) rises to all-time highs. However, when BTC goes down, the bank stops the project.
The executive believes the space needs to educate brands so they can see the value in blockchain. Because people still think blockchain is equal to Bitcoin. And when Bitcoin takes off, blockchain is good. When Bitcoin goes down, the blockchain is bad. That's a little tough,” he explained.
Related: African blockchain venture funding drops 70% in H1 2024 — CV Labs
How brands benefit from Web3
Giancola also argued that brands have two reasons to enter Web3 – cost efficiency and capture more of the market's purchasing power.
Lufthansa's Miles & More project says it will run on-board partnerships at 99% less cost than before thanks to Web 3 and blockchain technology. “This means that we can bring more efficiency by reducing a lot of costs on that side,” Giancola explained.
The executive believes that some brands can make more money using Web3 technology. Giancola explained that the Web3 market has a lot of purchasing power and there are new ways for brands to capture a share of that purchasing power.
“If you want to stay at the top, it's really about efficiency on the one hand and, let's say, generating less costs and on the other hand generating more revenue with that purchasing power,” he added.
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