Corporate America has caught NFT fever. The latest company to jump on the bandwagon is Pepsi, which unveiled its “genesis NFT collection” dubbed Pepsi Mic Drop. The set includes 1,893 NFTs that were created on the Ethereum blockchain, the size of which is no coincidence and represents the year that Pepsi was founded.
Pepsi Mic Drop reflects what the company describes as its “brand's roots in music.” Pepsi has been known to partner with pop stars like Michael Jackson, Britney Spears, Beyoncé, Adam Levine and others. Incidentally, NFTs can take the form of musical clips, so it will be interesting to see what else Pepsi has up its sleeve for its collection.
One of the key features of NFTs, in general, is their unique nature, which has been known to bolster their value. Pepsi's collection is relying on an algorithm to randomly generate the tokens, which will be a blend of the company's love for music and flavors. The common denominator is a microphone, around which Pepsi will showcase its history of flavors such as:
- Blue Pepsi (classic)
- Silver Diet Pepsi
- Red Pepsi Wild Cherry
- Black Pepsi Zero Sugar
- Crystal Pepsi
Pepsi has drummed interest with its NFT tweet, which has received close to 18,000 “likes” almost 7,000 retweets at last check. Mark Zuckerberg's company Meta, Facebook's recently renamed parent company, was among the accounts to chime in, saying, “This is going to look great in the meatverse.”
NFTs or Bust
The NFTs are being offered for free, which is a strategy similar to that taken by movie chain AMC Entertainment. For AMC's part, its NFTs can later be traded or sold for a potential profit from which it might also take a cut. For a chance at Pepsi's limited NFTs, you must join a waitlist and connect a digital wallet. Upon approval, participants can mint their own Pepsi Mic Drop NFT. Pepsi is holding onto 50 of the NFTs for itself to use in future initiatives. Pepsi also touts the potential for NFT holders to list their tokens on an NFT marketplace like OpenSea.
While the NFTs themselves may be free, users will still be responsible for paying what's known as gas fees on Ethereum. This is the price you pay to perform transactions on the blockchain. Ethereum's gas fees have been lofty this year as the network has grown increasingly crowded amid the rise of niches like NFTs and decentralized finance (DeFi).
For example, last month, the average gas fee on the Ethereum blockchain surpassed $60 per transaction. In some cases, the gas fees surpass the price of the asset. Ethereum is going through an upgrade to Eth 2.0 that is designed to lower fees and speed up transactions, but it won't happen overnight. In the meantime, rival blockchains like Solana that don't have the same issues are increasingly taking a bigger slice of the NFT pie.
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Featured Image Credit: PepsiCo