Brands that fail to thrive in Web3 often haven’t fully immersed themselves in the technology, according to Gabriele Giancola, CEO and founder of Qiibee. In an in-depth interview with Cointelegraph, Giancola shared insights into why some traditional Web2 brands stumble in their Web3 ventures while others achieve remarkable success.
Half-hearted Web3 Attempts Lead to Failure
On July 18, a study suggested that brands could significantly improve their loyalty programs by leveraging Web3 technology. The research, conducted by Polygon Labs, Google Cloud, and Accenture, highlighted the potential business opportunities in Web3’s experience-driven economy. Despite these promising prospects, many established companies’ Web3 efforts have been discontinued. For instance, the Singapore-based travel service giant Trip.com recently shelved its Trekki non-fungible token (NFT) project, drawing criticism from the community.
Giancola believes that brands treating Web3 as a mere “side project” lack the necessary time, investment, and capital to genuinely test and harness the technology’s benefits. He remarked, “The ones that did it more as a side project were just dipping their toes in. They didn’t go swimming; they didn’t just jump into the water and say, let’s swim.”
Market Fluctuations and Brand Perception
Giancola recounted how each time Bitcoin (BTC) reaches an all-time high, his company, which assists brands in launching Web3-based loyalty programs, receives inquiries from banks about potential crypto credit card collaborations. However, when BTC’s value drops, these banks often halt the projects. This, according to Giancola, underscores the need for educating brands about the intrinsic value of blockchain technology beyond Bitcoin’s price volatility. “People still equate blockchain with Bitcoin. When Bitcoin is up, blockchain is seen as good; when Bitcoin is down, blockchain is bad. This perception needs to change,” he explained.
The Dual Advantages of Web3 for Brands
Giancola asserted that brands enter the Web3 space primarily for two reasons: cost efficiency and the ability to tap into a larger share of the market’s purchasing power. He cited Lufthansa’s Miles and More project as an example, noting that it integrates partners with 99% fewer costs due to Web3 and blockchain technology. “We can reduce costs significantly and bring more efficiency,” Giancola emphasized.
Additionally, he believes that Web3 technology can help brands increase their revenue. The Web3 market possesses substantial purchasing power, offering new mechanisms for brands to capture a portion of this market. “At a high level, it’s about enhancing efficiency and reducing costs on one hand, and generating more revenue by tapping into the market’s purchasing power on the other,” he added.
Educating Brands for Long-term Success
The key takeaway from Giancola’s insights is the necessity for brands to fully commit to Web3 technologies and educate themselves on blockchain’s broader applications. The misconception that blockchain’s value is tied solely to Bitcoin’s market performance needs to be dispelled. Brands that immerse themselves fully and understand the nuanced advantages of Web3 stand to gain significantly in terms of both efficiency and revenue.
As the Web3 landscape continues to evolve, those brands that dive in headfirst, rather than just dipping their toes, are more likely to reap the substantial benefits that this transformative technology promises.
