Another giant has quietly entered the meta-universe! Walmart plans to create cryptocurrencies and NFTs

With the concept of a metaverse booming, retail giant Walmart seems to be gathering momentum to enter the virtual world. According to foreign media reports, Walmart has registered several new trademarks and plans to create its own cryptocurrency and NFT (non-homogeneous token).

Trademark squatting

The US Consumer News and Business Channel (CNBC) reported on the 16th that the official website of the US Patent and Trademark Office showed that Wal-Mart applied for several new trademarks on December 30 last year, indicating that it intends to produce and sell virtual goods, including electronic products, home decoration, toys, sporting goods and personal care products.

According to Bloomberg, Walmart's trademark application information mainly includes two categories: one for shopping services and one for financial transactions for virtual currency and advertising.

In a separate filing, Walmart said it would offer cryptocurrencies and NFTs to users.

Walmart declined to comment on the specific trademark application, but said in a statement that the company is "continuing to explore how emerging technologies can shape the shopping experience of the future."

Industry analysts believe that although Walmart hopes to behave low-key, its determination to the metacosm should be serious.

With augmented reality (AR) and virtual reality (VR) technology, these virtual goods registered by Walmart can be applied to virtual scenes, which means that Walmart will have the right to use its own trademarks in the metaverse in the future.

In fact, Walmart has already begun to test the meta-universe earlier. Last summer, Walmart released a job posting in a related field that asked the position to be responsible for developing a digital currency strategy and product roadmap, as well as cryptocurrency-related investments and partnerships.

Last October, Walmart also launched a pilot program to set up 200 kiosks in stores across the United States for consumers to buy bitcoin.

Potential gains

In fact, since Facebook announced its name change to Meta in October last year, many companies have accelerated their layout in this emerging market.

The metaverse is equivalent to a virtual world parallel to the real world, in which users can create a virtual identity and travel, shop, work, play, and so on. As a result, many brands have also smelled new business opportunities.

Last November, nike, a well-known sports brand, filed a series of trademark applications that will be used to sell virtual brand sneakers and apparel. Subsequently, Nike also launched a virtual world platform called "Nikeland" and acquired virtual sneaker company RTFKT, further demonstrating its determination to enter the metacosm.

In recent weeks, several apparel retailers, including Urban Outfitters and Ralph Lauren, have also filed metaverse-related trademark applications, detailing their intentions to open virtual stores.

Trademark attorney Josh Gerben said the metaverse is no longer a vague concept and "all of a sudden, everybody feels, 'This is becoming very realistic and we need to make sure that our IP is protected in this area.'" ’”

The analysis points out that retailers are competing to invest in metacosm, illustrating the potential benefits that the field can bring.

Market research firm CB Insights noted that the issuance of NFTs will allow businesses to tokenize physical goods and services, thereby reducing the cost of online transactions.

Some brands have tasted the sweetness of the meta-universe, and the price of NFTs released by them is extremely high. Adidas reportedly released its first NFT in the middle of last month, quickly earning $23 million.

For some luxury brands, NFTs not only bring more exposure, but also a kind of certification and affirmation of luxury goods. Louis Vuitton released a mobile game that utilizes NFTs last August, showing the brand's history.

Industry insiders expect that with the popularity of the meta-universe, more and more consumers will begin to understand and become familiar with blockchain and NFTs, and more retailers will create their own ecosystems around blockchain.

Frank Chaparro, head of the crypto services company, said there are still many retailers who regret entering the e-commerce market too late, so they certainly don't want to miss any opportunity to preemptively lay out the metaverse.

Opportunities and challenges

The industry is curious, in this crowded emerging track, how will the veteran supermarket Wal-Mart stand out?

Business Insider believes that the status of retail giants may become Walmart's advantage.

Walmart is now the world's largest retailer and the largest privately held company in the United States. According to e-commerce analysis reports, Walmart's online sales increased in 2021, with sales of $11.1 billion in the third quarter.

Some analysts said that virtual reality shopping and online shopping are still very different, such as immersive experiences and social attributes, which also brings more business cooperation possibilities to Walmart.

However, some analysts pointed out that it is not easy to get a piece of the virtual world.

At present, most of the first layouts are retailers in the apparel industry, and competition is inevitable. Nike laid out very early, applying for its blockchain sneaker patent "cryptokicks" more than two years ago. Casual brand Gap focuses on "low prices", and the current NFT on sale is as low as less than $9 a piece.

Analysts at Morgan Stanley expect the market size of the metacosm to reach $8 trillion, but the challenge is how to get consumers to buy. In fact, for the meta-universe, many companies have not yet clearly planned how to maturely invest and build.

(Edit email: [email protected])