Cracking the Code: From NFTs to Real Engagement

Brands have experimented with Web3 for years, starting with flashy NFT drops and limited-edition digital collectibles.

Most of these experiments failed.

You might think: “It’s the missing UX”. Maybe. But there’s more. 

Brands understand that successful engagement isn’t about throwing technology at people (such as NFTs or wallets). It’s about creating customer value.

Brands are now taking a step back, looking at their consumer engagement strategy more holistically, including Starbucks and Nike most recently. 

Digital assets, gaming, data, and loyalty now need to work together across platforms and devices.

For brands to succeed, they must have a clear strategy and an easy-to-use, value-adding experience for people new to blockchain.

Today we’re going to unpack this new reality together with Otherlife, a leading creative agency that might have just cracked the code. 

We’ll look at: 

• Why Most Web2 Brands Failed in Web3

• Otherlife: Two Halves of Magic

• What’s Next for Web2(3) Brands

• What’s Next?

• Takeaways for Brand Leaders

Let’s jump in. 

Why Most Web2 Brands Failed in Web3

Web3 is a complicated and highly cultural industry. 

It's filled with subcultures, communities, narratives, memes, jargon, and ideologies. Over 180 brands joined the Web3 hype, mainly through NFTs, starting three years ago.

Their goal was simple: connecting to the next generation of consumers. 

But again: Web3 is complicated. 

Blockchains, a lack of standards, complex user interfaces, wallets, private keys, and irreversible transactions. 

It includes everything an average user doesn’t want to deal with. 

It goes against all the principles of great UX design. 

The consequence? A bunch of start-ups popped up promising to solve UX challenges, such as “NFT minting platforms”, “NFT community management tools”, or similar. 

They massively simplified working with Web3 tech for brands, offering great UX improvements for users. 

Over time, however, most of these brands realized that UX alone wouldn’t cut it either. 

Consumer engagement wasn’t there. Why? 

It’s not about technology, stupid. 

Remember when every brand was minting NFTs? Those days are over for now.

50% of top global brands launched NFT projects (at 51 insights, we tracked all 180+ of them).

Now, 90% of them fizzled out.

By 2023, brands pulled in $65.8M from 85 NFT collections launched on Ethereum. The problem? After launching, engagement flatlined, and brands failed to connect with NFT buyers beyond the initial sale.

(Source: Moonblock)

Just last month, Nike paused their .SWOOSH platform. Earlier this year, Starbucks sunset its NFT loyalty program, “Odyssey.”

The trend is clear: brands are shifting away from flashy NFT drops to strategies that drive real ROI and engagement.

Expect more brands to follow this playbook: 

• Holistic digital strategies replace one-off NFT projects.

• Measurable ROI that solves real business challenges takes center stage.

• Integration of blockchain, immersive experiences, AI, and data into unified user journeys. 

So what? For that, they need partners who understand both strategy, design, and Web3. Otherlife is one of the few companies with the track record to deliver on all three. We spoke with them. 

Otherlife: Two Halves of Magic

Otherlife isn’t your typical agency. Born out of a MoonPay acquisition, it’s now the creative powerhouse helping brands crack the Web3 code. Whether it’s Web2 or Web3, Otherlife has mastered the art of building unconventional solutions at the forefront of the brand, digital design, web experience, and engineering.

From Web3 natives like Coinbase and Rug Radio to more traditional players like Mastercard, DeLorean Labs, Vercel, Narcos, and Neymar Jr., Otherlife’s client list is impressive. 

Founded by Michael Perrow and Michael Moodie, Otherlife doesn’t just stop at design and branding. With a crew of 30 pros, they’re knee-deep in blockchain and web development too.

Everything is done in-house.

The Magic Behind the Madness

Otherlife’s secret sauce? Two Halves of Magic. It’s their framework that walks the line between practical business needs and bold creative ambition.

• Otherlife Agency: The engine of commercial creativity. This side of the house focuses on business needs, crafting unconventional solutions that deliver results and keep clients ahead of the game.

• Otherlife Lab: The mad scientist's lab of creativity. It’s where experimentation takes the wheel, and no idea is too crazy. Think of it as their playground for pushing creative limits without worrying about immediate ROI.

Why it matters: Web3 design doesn’t have a rulebook—yet. By splitting experimentation from execution, Otherlife is helping brands avoid the usual Web3 pitfalls. The Lab isn’t just a playground; it’s a testing ground that feeds back into the Agency, allowing them to seize opportunities as they emerge while avoiding costly mistakes.

Otherlife Lab experimented with ultra-realistic 3D virtual worlds using advanced rendering techniques for lifelike experiences

The goal? To elevate digital experiences using creativity and technology, making them engaging for anyone, even your grandma.

What they’re saying:

“Web3 represents the natural progression of the internet, introducing a shared ledger system that enhances interoperability between programs and partners. This evolution is driven by the customer's best interest, ensuring full transparency over their asset trading history.”

Michael Perrow, Co-Founder and CEO, Otherlife 

"Good design is not just about aesthetics; it’s about being thoughtful and intentional. It requires a deep understanding of the user's needs, the context, and the purpose behind every decision, ensuring that every detail serves a meaningful purpose."

Michael Moodie, Co-founder & Chief-Creative Officer, Otherlife

So what? Fancy features don’t matter if they don’t solve real problems. This is particularly true in Web3. 

This is where Otherlife excels: they create experiences that users can actually engage with and turn complex tech into something accessible and valuable.

Let us look at a few case studies. 

#Case Study 1: Mastercard

In 2024, Mastercard teamed up with Otherlife to advance its Web3 initiatives, using cutting-edge technology to elevate its experiential marketing efforts. This collaboration marked a pivotal year for Mastercard’s digital innovation.

Throughout the year, Mastercard integrated Web3 technology into major events like the UEFA Champions League, Arnold Palmer Invitational, Artist Accelerator, The Grammys, The British Open, MLB Stand Up to Cancer, and MLB Priceless Experiences Loyalty Program.

Let’s take a closer look at two standout examples::

UEFA Champions League:

Mastercard launched an NFT-powered soccer trivia game during the tournament, giving fans a chance to win match tickets by testing their league knowledge. Participates in collected branded NFT passes through Mastercard’s new "Pass to Priceless" platform, enhancing fan engagement with exclusive digital rewards. 

Arnold Palmer Invitational:

Mastercard cardholders had the opportunity to collect four unique digital collectibles by interacting with real-world checkpoints at the tournament. Simply by tapping their phones on designated readers, users could claim each collectible. Those who collected all four passes were eligible for exclusive prizes, including custom artwork by Coach Rusty, the chance to walk inside the ropes at the 2025 Arnold Palmer Invitational, or ground passes to next year’s tournament.

Execution: For all seven initiatives throughout the year, Otherlife managed the campaign strategy and execution, as well as Web2 and Web3 development and engineering.This included key components such as identity design, 3D animation, NFT design, AI Integration, and WebGL Engineering.

Why it matters: Otherlife’s collaboration with Mastercard showed how Web3 technology can transform traditional marketing strategies. By seamlessly integrating NFTs, digital collectibles, and immersive experiences into real-world events, Mastercard was able to engage its audience in innovative and interactive ways.

This approach not only expanded fan participation but also provided greater visibility for artists and strengthened Mastercard’s position as a leader in digital innovation. Through these initiatives, Otherlife helped set a new benchmark for experiential marketing in the Web3 space, demonstrating the potential for brands to build deeper connections with their audiences while leveraging cutting-edge technology.

This case highlights a key lesson: The success of Web3 projects hinges on more than just the tech. A targeted strategy, seamless user experience, and relevant rewards are key to driving adoption.

#Case Study 2: DeLorean Labs

After years away from the spotlight, DeLorean made a bold comeback by announcing a new electric vehicle.

To support this venture, they partnered with Otherlife to develop an innovative marketplace where users can buy, sell, and trade vehicle reservation slots using blockchain technology. This platform aims to protect customers and guarantee the validity of all transactions.

Challenge: Beyond the initial challenge of developing a strategy aligned with business objectives for selling build-slot NFTs, Otherlife was also tasked with positioning DeLorean as a forward-thinking leader in the space and building excitement around both the marketplace and the DeLorean brand. Their next step was to craft a plan that would generate buzz, engage potential buyers, and solidify DeLorean's reputation as an innovative leader in the industry.

Execution: As part of DeLorean's entry into Web3, they partnered with Mysten Labs and the SUI blockchain to launch their Web3 presence and build a strong community. The first step in this journey was the DeLorean Time Capsule NFT collection, which was announced at Token 2049 in Singapore. The initial batch of 800 NFTs was claimed in under 30 minutes, generating significant media coverage and boosting Sui’s token value, sparking widespread interest in the upcoming marketplace.

But DeLorean didn’t stop there. To further promote the Time Capsule, they teamed up with Back to the Future star Christopher Lloyd to create a short film in which Lloyd receives "a Time Capsule... from the Future." Released alongside the second batch of NFTs, the video drove record demand, with 3,000 NFTs minted in under a minute.

With more batches on the way (totaling 8,800 NFTs), DeLorean's Web3 entry has already made a major impact.

Visitor Total

Why it matters: High-end vehicle build slots are highly sought after, but the current marketplace is risky. Buyers and sellers often rely on unregulated platforms like Craigslist, where fraud is common. NFTs and smart contracts change the game by offering a secure, transparent way to trade build slots.

Partnering with DeLorean and Mysten Labs, Otherlife is leading the charge with a first-to-market solution that legitimizes the secondary market. Consumers can buy and sell build slots with confidence, safeguarded from fakes and scams.

What they’re saying:

“Relaunching an iconic car brand is a lot of work. Thankfully, with Otherlife, I know I’m in great hands. When it comes to digital, I hand off my requirements to the Otherlife team and let them work their magic. It’s such a relief to know they can elevate our web, brand, and 3D design, manage all our web engineering, blockchain integrations, and third-party integrations, and provide expert support to our team with all things digital.”

– Evan Kuhn, President, DeLorean Labs

#Case Study 3: MoonPay Brand Evolution

Founded in 2019, MoonPay began as a crypto payment gateway, enabling users to buy and sell cryptocurrencies with fiat currency via a simple widget on partner websites.

• In 2023, the company expanded into Web3 infrastructure with its offerings to include NFT minting, custodial solutions, and other infrastructure tools. It launched a complete Web3 suite in 2024.

• Major brands such as Mastercard, Gucci, Puma, and Adidas have utilized MoonPay's tools for various initiatives.

(Credits: Otherlife)

Challenge: With a shift from crypto-native users to traditional brands and Web3 newcomers, MoonPay needed a re-brand that could bridge both audiences—simplifying Web3 for beginners while providing advanced tools for seasoned users.

Execution: Otherlife partnered with MoonPay to build a cohesive and future-proof brand strategy using a collaborative process involving interviews and workshops with ~⅓ of the organization. They evolved everything from brand purpose, vision, mission, values to brand voice, scriptwriting, and 3D animation, aligning MoonPay’s brand and visual identity across product launches, partnerships, and milestone announcements.

(Credits: Otherlife)

Why it matters: MoonPay is a leading Web3 infrastructure provider with a focus on accessibility and mainstream adoption. Its payment solution and Web3 offering differentiate from each other with a clear and modern design and top UX.

Be smart: In Web3, engagement and loyalty from mainstream users are major challenges. MoonPay, with Otherlife’s branding expertise, created a new North Star for the brand that resonates with both crypto-native and traditional audiences—building trust and driving adoption across the board. 

What’s Next for Web2(3) Brands

The days of standalone NFT projects are behind us. Brands are no longer looking to blockchain or Web3 as quick, one-off experiments. 

Instead, they’re starting to combine holistic digital strategies that integrate blockchain, AI, immersive experiences, and data to solve real business problems and drive measurable ROI.

Again: Over 50% of the top global brands launched NFT projects—and most of them have fizzled out.

Why?

Because these projects were often tech-first, not user-first. And, new tech without a clear strategy doesn't work.

Strategy x UX Drive Success: The brands that will succeed are those that embrace a clear strategy—one that weaves Web3 into their larger digital ecosystem without making it the focus. This means leveraging emerging technologies to enhance, not distract from, the core brand experience.

The Big Picture

A key challenge for brands will be to create sustained engagement instead of one-off hypes. 

This is why the next wave of Web3 experiences is about connecting virtual and physical and integrating technologies like crypto payments, digital collectibles, data, and gaming into seamless user experiences. 

Expect to see:

• Integrated digital strategies replacing isolated NFT drops

• A renewed focus on user experience and product adoption

• More brands using Web3 technology to enhance—not dominate—their brand story, while maintaining core brand values

Alo Yoga, a growing US activewear brand, has done this well. By linking VR, gaming, digital assets, immersive shopping, and digital collectibles, the brand is pushing the boundaries for brand loyalty. 

The next chapter for Web2(3) brands isn’t about diving deeper into technology—it’s about using that technology as a tool to tell a better, more cohesive story that resonates with mainstream consumers. 

Takeaways for Brand Leaders

1. Align UX with strategy

Actionable insight: Successful digital initiatives come from strategically combining digital assets, gaming, data, and AI to align with your core business objectives. The goal isn’t just to add tech—it’s to create a seamless user experience that drives measurable results.

What you can do: Bridge tech and business goals. Ensure every digital asset or tech layer supports your broader business strategy. Integrate these tools in a way that simplifies the user journey and delivers tangible value, not just novelty.

2. Shift your mindset: 

Actionable insights: How do we generate ROI for the business? What actual business problems do we solve? And most importantly, how much value are we willing to give back to users? The next generation of consumers demands more agency and participation. Brands will have to grapple with giving away brand authority and empowering consumers along the way.

What you can do: Start thinking beyond ad-driven business models, i.e. spending your marketing budget to throw ads at consumers. By turning your marketing budget into direct incentives for your users, you can drive deeper engagement and loyalty. 

3. Think More Broadly About Engagement

Actionable insight: The era of standalone NFT projects is done. Moving forward, brands need to integrate Web3 elements like blockchain, AI, and immersive experiences into a broader, cohesive strategy. A fragmented approach won’t cut it.

What you can do: Use Web3 as a tool rather than a product. The marriage of Web2 and Web3 can help brands engage with consumers beyond the initial purchase. Simplify onboarding, and ensure seamless user experiences to make new technology accessible. Do not deviate from your brand strategy and keep all the digital activations tied to your vision and target audiences.

The next generation of users will spend more time online than ever. As brand touchpoints increasingly go digital, user experience and the value delivered will be the key drivers of engagement, loyalty, and growth. Brands that prioritize this will lead the future.

That’s it for now. 

Talk soon, 

Marc

PS: If you’re interested in working with Otherlife, reach out here. 

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This article is published in collaboration with Otherlife. As the author, I maintain full editorial integrity and the views and insights expressed are my own, ensuring the content remains unbiased and authentic.

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