Building a Responsible Metaverse The Risks and Rewards of Tokenization Although crypto and NFTs capture headlines, Although this seems like an ideal situation what truly matters is blockchain. In an era of for companies, respondents cited financial discontinuity and distrust, multiparty systems value as the primary motivator for engaging enabled by blockchain are rising in popularity. in cryptocurrencies and NFTs. This begs the question: Are consumers really interested in Companies now have unprecedented engaging with a brand through digital assets, opportunities to explore the tokenization of or is it simply about speculation? And if so, is it money, objects and identities. When we asked worth the risks? consumers how they perceived brands that were engaging in these activities, 50% claimed they To find out, companies must conduct a cost- admired brands accepting cryptocurrencies. benefit analysis to assess if there is value in a Moreover, consumers were 6x more likely to have specific blockchain use case or opportunity. a positive reaction to a brand engaging in NFTs They must understand the potential risks 10 than a negative reaction. (operational, financial, legal and reputational) and plan corresponding mitigation strategies by scoping engagement models, mapping interdependencies and carefully selecting partners. 11