Is It Challengeable To Redeem Physical NFTs Or Not?



By Awais Rasheed // in NFT


Interest In NFTs Is All-Time High Whether Drinking Cold Juice In Summer Or Serving Hot Tea In Winter As Well. You can get digital NFTs with physical goods almost at every famous brand. Their unique name for them is Phygitals which allows you to attach physical goods to the digital world.

For instance, a project called Cryptokicks iRL was just introduced by the digital fashion and collectables business RTFKT. Sources claim that RTFKT produces sneakers with tangible product backing that are digitally developed.

According to a recent tweet from RTFKT’s official Twitter account, Lace Engine NFT owners will be able to reserve a pair of Cryptokicks iRL, which can subsequently be redeem for the real version beginning on May 1, 2023.

Have You Ever Find To Redeem Phygitals A Challenge? 

Even while companies and customers may find the idea of phygitals enticing, it has proven challenging to redeem real NFTs. 

As an illustration, in some circumstances, holders of digital NFTs that are tied to tangible items may need to submit their wallet address to redeem their NFTs. However, obtaining personal data from NFT holders, such as shipping information, is challenging.

After deploying two NFT drops connected to actual wine bottles, Jacob Ner-David, CEO of the wine marketplace Vincent, informed Cointelegraph that he ran into this issue. According to Ner-David, Vincent initiated a public and private NFT drop around the end of 2021. 

This made it possible for customers to buy exquisite wine that was tokenised and redeemable for actual bottles a year later.

Ner-David noted that even though the idea was successful, only a small proportion of NFT holders had come forward to claim their bottles of wine. Ner-David claims that this is because there have been issues with the redemption procedure and with notifying NFT holders when their wine is prepared for collection.

“Telegram, Twitter, and Discord are the only platforms we use to connect with NFT holders. We must get their shipping data,” he declared.

According to Ner-David, 15% of NFT holders who participated in the private drop had redeemed their actual wine bottles, compared to 30% of those involved in the public drop.

Before launching a physical NFT drop, a redemption mechanism has to be set up. Ner-David noted that the unclaimed wine bottles remain in the Jezreel Valley Winery in Israel and that storing them has become a challenge.

Companies deploying physical NFT drops have begun using alternative strategies due to problems like these. 

Malki stated that the actual shoes connected to these digital NFTs would be accessible in 2023’s first quarter. He continued, saying that this drop is intended for non-Web3 users, emphasising that customers can provide their physical postal addresses when they purchase.

“We anticipate that 80% of our users won’t be bitcoin owners. They are free to provide their data if they so want.” He suggested that NFT owners provide their shipping information as soon as they make a transaction.


About the author, Awais Rasheed

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