Starbucks is launching NFTs. Here’s what to know.

Starbucks is one of several big food and beverage brands wading into the world of NFTs, joining McDonald’s, Coca-Cola, and Budweiser in their offerings.

These companies hope to capitalize on the digital currency craze and attract both existing fans, as well as new ones who are intrigued by web-based experiences. The Sum explains.

To Sum It Up

• Starbucks is one of several big food and beverage brands wading into the world of NFTs.

• McDonald’s, Coca-Cola, and Budweiser have all launched their own NFT collections in recent months.

• These companies hope to capitalize on the digital currency craze and attract both existing fans, as well as new ones who are intrigued by web-based experiences.

What’s Happening

• Starbucks launched Starbucks Odyssey, which will sell “digital collectible stamps” (otherwise known as NFTs) to loyalty members.

• Odyssey users who own these NFTs will get access to what the brand calls “new, immersive coffee experiences.”

• These experiences could include access to limited edition merchandise, cocktail-making classes, invitations to exclusive events, and trips to Starbucks’ coffee farm in Costa Rica.

The Background

• NFT stands for “non-fungible token.” It essentially means a digital collectible item.

• Think of NFTs like a digital baseball trading card or painting: You buy it because it’s a one-of-a-kind piece.

• However, their popularity is opening up lots of questions about what it truly means to “own” something that’s based on the internet.

Why It Matters

• Blockchain, cryptocurrencies, and NFTs aren’t going away anytime soon, and brands will continue to join in on the trend for now.

• However, these new ways of buying and selling digital “goods” definitely come with unknowns, including greater security and privacy risks regarding users’ data.

• For now, it’s important to proceed with optimistic caution.

SOURCES

• Starbucks:

  Starbucks Brewing Revolutionary Web3 Experience for its Starbucks Rewards Members

• Axios: Starbucks says rewards members can soon earn and buy NFTs
• TechCrunch: Starbucks details its blockchain-based loyalty platform and NFT community, Starbucks Odyssey
• The Verge: NFTs, explained
• CoinDesk: Starbucks to Offer NFT-Based Loyalty Program Using Polygon’s Blockchain Technology
• DemandSage: 33+ NFT Statistics 2022 [Facts, Trends & Data]

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This story was originally published September 30, 2022 at 10:14 AM with the headline "Starbucks is launching NFTs. Here’s what to know.."

The Sum

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The Sum breaks down complex economic issues and how they impact your life in just a few minutes a day. Follow @thesum.news on Instagram for the full story.