The crypto bull market could spark a renewed interest non-fungible tokens (NFTs).
According to DappRadar, the NFT sector has seen this a 50% increase in trading volume for the first quarter of this year, generating sales of $3.9 billion. These findings indicate that this is the strongest quarter for NFTs since the first quarter of 2023.
The NFT hype is also generating interest among the general public. Web3 scavenger hunts in particular are gaining popularity as these interactive games are implemented at several events this year.
Quests drive engagement using Web3 elements
a blog post from growth platform Intract explains that Web3 quests combine game elements with digital assets. This can lead to better user engagement, as a game’s story is told while digital assets are earned as rewards.
Although this is a fairly new concept, it is a popular music festival Coachella recently announced “Coachella Quests.”.” This is a loyalty game, powered by the smart contact platform Avalanche which rewards festival-goers for participating in various Coachella experiences.
Paul Chodirker, Director of Enterprise Business Development for Ava Labs, told Cryptonews that the goal behind Coachella Quests is to increase and strengthen digital participation.
“We want to connect the digital world with the physical one,” says Chodirker. “We believe Coachella is at the heart of this hybrid, real-life experience.”
Chodirker explained that Coachella Quests will allow fans to complete local and virtual challenges. Once tasks are completed, fans earn “digital stamps,” NFTs. Users also earn token points called ‘XP’, which can unlock exclusive prizes and festival experiences.
Coachella Quests unlocks a new way for fans to experience the festival, powered by Avalanche 🎡
Quests allows fans to gamify their festival experience and earn rewards using digital and physical @Coachella touchpoints, including innovative art, games and immersive… pic.twitter.com/4guzD2v0aY
— Avalanche 🔺 (@avax) April 3, 2024
“There will be an in-person activation in a special Avalanche/Coachella Quests Hideaway, which is open to all festival goers,” Chodirker said. “Rewards can be redeemed at the Hideaway, where users can board and view interactive digital art installations. This will also serve as a hub for information and meetings.”
Chodirker added that the XP points are tokens stored in a custodial wallet. He explained that users can log into the wallet using a well-known social login feature.
“The product is designed to create a seamless user experience on the front end that web2 consumers are accustomed to, while using blockchain on the back end to authenticate and give ownership to the digital items,” he explains.
While this may be true, Web3 quests are already being embraced by crypto natives. Dylan Abruscato, founder of Crypto: The Game, told Cryptonews that it is a 10-day crypto survival game inspired by Survivor, The Hunger Games and Squid Game.
Abruscato explained that briefly Crypto: the game is not a quest in itself, it consists of daily immunity challenges.
“These challenges range from competing in arcade games to taking part in digital quests, introducing in-game challenges or scavenger hunts,” he said.
Abruscato shared that season 2 of Crypto: the game starts on April 8 and is made possible by Base, the Ethereum Layer-2 incubated by Coinbase. The new season is inspired by the success of the first season of Crypto: the gamethat attracted 410 players.
“A Japan-based player known as ‘MFL” won the grand prize of 41 ETH and was revered by his tribemates for the poetry he shared every morning,” Abruscato said.
Onchain Spotlight 🔆 Crypto: The Game
Season 2 of @cryptothegame_ is back in action on @base and the stakes are higher than ever.
Many will play, but only one will win. pic.twitter.com/B6LbEup8yc
— Coinbase Wallet 🛡️ (@CoinbaseWallet) April 3, 2024
Web3 Quests enable on-chain data collection
While Web3 Missions can result in better fan engagement, it’s important to point out that no user data is collected.
Sam Schoonover, Innovation Lead for Coachella, told Cryptonews that “Coachella does not collect any personal data for this program.”
He added: “Coachella can get information about completed quests and general interest around certain activities by viewing the stamp distribution in the chain.”
This can be one of the most beneficial aspects of including Web3 quests at major events. VICE reported this in 2017, for example Coachella suffered a data breach which affected 950,000 user accounts. The compromised data included email addresses, usernames and hashed passwords. All this information was sold on the dark web.
By increasing fan engagement while only having access to on-chain data from NFTs, you can help protect a user’s personal data.
Abruscato noted that during season 1 of Crypto: the game players were identified only by their X social media handles. He said that Season 2 will allow anonymous play through an NFT coin mechanism.
“Players save an NFT to secure a spot in the game, which can be sold at any time, allowing spectators and former players to buy in,” he said. “This unique crypto mechanic creates a dynamic in-game economy.”
Challenges can hinder mainstream adoption
Valentina Lauria, Business Development and Partnership Lead at Web3 membership platform Unlock Protocol, told Cryptonews that scavenger hunts are undoubtedly becoming a popular tool to include during events.
“Unlock had a strong presence at ETH Denver and scavenger hunts played a big role in driving engagement during the event,” said Lauria.
She added that using tokens as rewards tend to encourage engagement.
“Event attendees often want to collect as many rewards as possible,” she says. “Even if the rewards have no financial value, rewards can certainly become more valuable in the future.”
However, Lauria noted that incorporating quests into events can be challenging.
“The real challenge is to make these tools as easy to use as possible for newcomers while continuing to leverage Web3 technology,” she says.
While this may be easy enough for a Web3 audience, non-crypto natives may struggle with quests.
Still, Schoonover is optimistic that Coachella Quests will appeal to the mainstream.
According to Schoonover, Coachella abstracts away from the Web3 technology part and rather focuses on creating a fun and engaging experience.
“We don’t believe fans need to know or even care about the technology they are using,” he said. “As long as it solves a problem or improves their lives, they will try it.”
This may also be why Coachella calls its NFT quest “stamps.” Chris Castiglione, co-founder of Web3 events platform Console, told Cryptonews that while there are mainstream use cases for NFTs, the terminology doesn’t need to be mentioned.
“Five years from now, I don’t believe anyone will say the word ‘NFT’ anymore,” Castiglione said. “Still, I think NFTs (the technology) will be baked into many of the apps we use; they will simply be invisible. When technology becomes invisible, it is most successful.”
Coachella aims to expand its Web3 footprint
Interestingly enough, Coachella collaborated with NFT marketplace OpenSea this year to offer fans non-fungible token mementos.
“Coachella Keepsakes are NFTS that come with festival tickets and exclusive onsite and online benefits,” said Schoonover.
Devin Finzer, CEO of OpenSea, told Cryptonews that the platform’s partnership with Coachella will continue.
“Collaboration between the parties is ongoing as we seek to reimagine how ticketing, festival access and music fandom in general can be further enhanced through the use of NFT technology,” he said. “In the short term, a new Keepsakes offering is planned for mid-April, coupled with special merchandise access from Coachella.”