20 TOBACCO BUSINESS | NOVEMBER / DECEMBER | 22 kind of where we [UREEQA] come in. We validate something before or after it’s been hashed and tracked on the blockchain.” Education is just as important in the NFT and crypto space as it is in the cigar industry. When working with any client, UREEQA approaches each project from a place of education. UREEQA also works hard to address any pain points companies may have in regard to the volatile nature of the crypto and NFT categories. “We understand that the world sees crypto as this big negative thing right now because we had such a dramatic drop-off when we went from the bull market to the bearmarket, but we have to look at it fromthe angle of ebb and flow. We have rises, we have drops. That happens whether you’re investing in real estate, stocks or crypto. We just try to come at it from a point of education and ensuring that we’re protecting, educating and informing our clients as best we can,” says Powell. Powell admits that the current state of the crypto market offered the most challenge when launching La Flor Dominicana’s NFT project. “A lot of projects are launching, and people think they’re going to be super exciting and successful, and they’re not,” Powell explains. “Back when we were in the bull market, people could drop projects with very little marketing, and they get bought up while not having real-world utility. We’re not really in that market anymore. With this project, it was important that Tony provide real-world utility. He really put in the work to market the project and inform and educate potential buyers.” La Flor Dominicana’s Golden Bull NFT was a unique product launch that wasn’t guaranteed success, but with the press coverage and money it was able to raise, it was one of the most notable cigar releases in recent years. Powell believes NFTs will continue to evolve and grow in importance in the coming years and predicts the cigar industry in particular will adapt them more into their business plans as their usefulness continues to become more evident. “From a manufacturer or retailer perspective, the blockchain is such a convenient way to track ownership,” says Powell. “Look at this process we did with Tony. We know who owns those seven NFTs and therefore who has the right to buy the limited number of cigars on a monthly basis. It’s tracked, and it’s very public. From an actual operational standpoint, we know who the owners are and how many cigars they’re ordering on a monthly basis. I think that’s a much more efficient process now that it’s tracked through an NFT.” Powell has three tips for tobacco businesses interested in creating and launching their own NFT. First, make sure you have the time needed to be successful. Take the time to step back and look at the big picture, she advises. This includes knowing the current state of the market and how other competitors have launched NFTs of their own. The main idea is to take the time to do the proper research that will allow your NFT to launch successfully. That leads to the next requirement: You need an engaged audience to promote and sell your NFT to. “Come up with a good marketing strategy that is really focused around building a community,” she says. “The best way to launch an NFT collection and have it be successful is to really focus on building that community. You also need to educate that community prior to the launch.” When educating your audience on NFTs, it’s also important that you are fully aware of what you yourself don’t know. Be willing to reach out to other companies and individuals who knowmore than you do about crypto and NFTs and ask them for guidance and help. Be open to the possibility of partnership with another company that may have more experience in the NFT space and launching a product with them and with their help. “I find with this Web3 space it’s an industry where people are so open and willing to help because things are changing so quickly and we’re all just here trying to educate and support each other,” says Powell. Launching an NFT is something that shouldn’t be rushed, and it does take work, but the end result is worth it. The best NFTs are those that offer the buyer some benefit if they own it. Think of what utility you can attach to your NFT and communicate it to your audience ahead of putting it up for sale. Tobacco businesses thrive on sales, and just because crypto and NFTs seem futuristic and off-market for traditional products like cigars, cigarettes and pipe tobacco, it doesn’t mean they can’t be adapted and made to work. Get ahead of the game and start doing your research on NFTs and crypto—they will undoubtedly change and evolve over time, but in some way, shape or form, they are the future—and they are here to stay. TB New to crypto? Here are some of the common terms and phrases you need to know to know in order to understand the world of cryptocurrency: 1. Airdrop: A marketing action during which coins or tokens are sent to a wallet address in order to promote awareness of a new digital currency. 2. Bitcoin: A decentralized digital currency that can be traded for goods or services through a peer-to-peer bitcoin network. 3. Blockchain: A shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. 4. Cryptocurrency: An encrypted data string that denotes a unit of currency. 5. Decentralized Autonomous Organization (DAO): An entity with no central leadership where decisions, management and entity ownership are governed by a community organized around a specific set of rules enforced on a blockchain. 6. Ethereum: A decentralized, open-source blockchain with smart contract functionality. 7. Hash: A process that can be used to validate the authenticity and integrity of various types of input. 8. Minting: The creation of new tokens on a blockchain through a computational process to validate information, create new blocks and record information to the blockchain. 9. Non-fungible tokens: Known as NFTs, unique cryptographic tokens that exist on a blockchain and cannot be replicated. They often represent realworld items like artwork, real estate and luxury goods, such as cigars. 10. Wallet: A device or program that stores cryptocurrency keys and allows you to access your coins. 10 MUST-KNOW CRYPTO TERMS
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