OpenSea Partners with Coachella: NFTs Beyond Profile Pictures

Coachella Partners with OpenSea to Offer Exclusive NFT Collections

The NFT industry may not have fully recovered from its 2022 peak, but that hasn’t hindered the advancement of the technology. In a recent development, OpenSea has joined forces with the renowned music and arts festival organizer Coachella to launch three NFT collections that provide both digital and physical VIP experiences and merchandise.

Three Collections with Varying Perks and Exclusivity

The collaboration will ultimately result in three collections, each offering different benefits and levels of exclusivity (and price). The inaugural collection, the VIP Pass + Oasis Lounge Keepsake, was released on Tuesday, priced at $1,499 per NFT and limited to 1,000 pieces. This tier grants access to a 2024 VIP Festival Pass and its newly introduced lounge, which includes “exclusive bar benefits” such as “limited” complimentary drinks.

Details regarding the costs and utilities of the next two collections, set to be released in late March and mid-April, will be disclosed at a later date, according to the companies.

Avalanche Blockchain Powers the NFT Collections

The NFT collections will be built on the Avalanche blockchain, which ranks as the eighth-largest blockchain by NFT sales volume over the past 30 days, as per CryptoSlam data. Coachella chose to partner with Avalanche due to their alignment on the product the festival aims to create, as stated by Coachella’s innovation lead Sam Schoonover to The Zero Byte. However, additional details will be revealed later this month.

The Evolution of NFTs: From Digital Profile Pictures to Utility-Driven Assets

Since the term NFT gained traction, countless collections have been announced. OpenSea alone hosts over 2 million collections and 80 million NFTs on its marketplace. While this isn’t the first music-related project offering real-life use cases, it is a significant example of how utility-driven NFTs are transforming the perception of the web3 sector. Previously, the term NFT was often associated with sometimes overpriced digital profile pictures (PFPs). However, it is now beginning to encompass digital images that also provide utility both online and offline. This shift is one of the most promising indications that NFT marketplaces will, as their proponents claim, attract new users and increase sales.

NFT-Based Music and Ticketed Collections: A Path to Mainstream Adoption

Devin Finzer, CEO and co-founder of OpenSea, believes that NFT-based music and ticketed collections are one of the “best ways” for the crypto subsector to achieve mainstream adoption. Tickets can hold special memories for fans, and he sees the potential for them to be more than just memorabilia or collectibles, but also to offer utility.

“Coachella has the audience and distribution to take it to a whole other level. The willingness to make this an NFT that is useful and valuable and something people will be excited about versus some of the things in the past NFT projects have been, maybe more half baked, this is something that is sophisticated and exciting with real world value.”

OpenSea’s Push to Regain Dominance in a Saturated Market

This partnership can be viewed as another effort by OpenSea to regain its position in a crowded market. On January 1, 2022, global NFT sales volume reached a peak of $23.7 billion. In the past month, NFT marketplaces recorded $2.21 billion in volume, according to analytics from Tiexo.

Despite having transacted over $20 billion in volume since 2017, OpenSea is not currently the largest NFT marketplace. In the past month, OpenSea ranked fourth by volume with a 10% market share, or $222.65 million, trailing behind Blur, Magic Eden, and OKX, respectively, as per Tiexo data.

Simplifying the NFT Buying Process

This project also aims to simplify the process of purchasing NFTs by using a straightforward email sign-up, rather than requiring newcomers to obtain a crypto wallet, purchase cryptocurrency, and so on. Email sign-ups and credit card on-ramps are becoming increasingly popular trends in the typically inaccessible sector.

“For a long time, web3 had a usability problem. But over the last three to four years, there’s been a lot of development to make it smoother for those not already well versed in all things crypto. We’re making it part of the experience on Coachella, so they can sign up easily and get the NFT easily.”

The Future of NFTs: Beyond Collectible Pictures

Schoonover believes that many other companies will begin to recognize that NFTs can be more than just collectible pictures. By thinking of them as unique, collectable digital tickets, he hopes that others will be inspired to experiment with NFTs and real-world access, benefits, and experiences.

Finzer shares this sentiment, noting that the theme for NFTs in recent years has been expanding beyond collectibles and PFPs to “real utility.” While a subgroup of people may remain interested in the PFP world, there is a broader audience who might not be as concerned with the crypto sentiment but recognize the value in the technology.

“I don’t think the audience cares about technology, whether it’s an NFT or virtual reality. They just want a fun and entertaining experience . . . [and] NFT technology is a unique way to deliver this.”