NFTs and crypto as rewards Rekt Brands found success with their NFT-linked sparkling water, selling more than 220,000 cans. Abstract Apple, a limited-edition beverage that promised 10 “DRANK points” and “Abstract XP,” sold out within minutes. Before you crown this "drink-to-earn" model as the future of marketing, let's take a long, hard look at what's really going on here. Is this real innovation, though? Or are we just witnessing crypto’s death rattle, as it tries to stay relevant in any way possible?

Crypto-Food Fusions: Real Success?

Remember Ape Water? Or Snoop Dogg's Bored Ape ice cream? What’s better than a Bored & Hungry burger restaurant? These ventures made a splash, you bet, but did they disrupt the food system? Did they succeed in driving highly visible projects that became household names and were synonymous with quality and longevity? The answer, unequivocally, is no. They were temporary novelties, flashes in the pan powered by hype and speculation.

Let's be honest: the data speaks volumes. But how many of these crypto-food hybrids are actually surviving, much less making money, a year or two down the road? I suspect the numbers are…disappointing. Though Rekt Brands has shown that they can create a big splash with their products, how do they hold up in the long run? While the first sell-out is undeniably an impressive feat, what’s more important is the repeat purchase. And what of customer loyalty outside of the crypto rewards siren song?

Incentivized Consumption: Ethical Quagmire?

Here’s where things get ethically murky. Are we really proud to be incentivizing the consumption of anything, especially not health-harming sugary drinks, with the promise of alluring crypto rewards? This alternative model uses many of the same psychological triggers as gambling. It hooks you in with the promise of cash-money rewards simply for drinking La Croix.

Think about the potential consequences. Might this create unsafe consumption patterns, particularly with younger, more impressionable demographics who are more vulnerable to the siren song of crypto? Are we creating a two-tiered system where only those familiar with crypto can benefit from everyday purchases, further widening the gap between the crypto-savvy and the crypto-illiterate?

What would happen when the DRANK points eventually devalue, as most altcoins are destined to do? Are consumers left holding the bag on nothing more than a class of overpriced sparkling water and astroturf disinformation? Instead, this looks much more like a win lose move to take advantage of a good thing.

Regulations Loom: Future Uncertain?

As we well know, the regulatory landscape around crypto is still rapidly changing. Governments around the world are still figuring out how to regulate this new industry, and “drink-to-earn” models will be a red flag. Might these schemes even constitute unregistered securities offerings? Could they run afoul of advertising regulations? The answers to those questions are murky, but what is crystal clear is the potential need for regulatory intervention is enormous.

Consider the implications if the SEC ultimately moves to enforce against such ventures. The potential for value of DRANK points to tank, leaving consumers without recourse, is very real. The lack of definitive federal guidance on crypto places yet another risk factor on what is already a highly speculative venture.

In so many different ways, I have a personal stake in all of this. My family has been in the Ceylon tea business for generations. Our reputation was established on the shoulders of honest-to-goodness, quality food, and sustainability. We certainly didn’t need gimmicks like crypto rewards to lure in anxious customers. Our approach worked because we provided an unbeatable product, and people knew what they were getting. This “drink-to-earn” model seems like a betrayal of those values, a cash grab aimed at milking the latest fad.

Like any new trend, the future success of “drink-to-earn” will depend on its ability to cut through the noise and provide sustainable value. Can it create a customer community that extends past the temptation of crypto rewards? Can it navigate the complex regulatory landscape? Perhaps most importantly, can it do all of that ethically, without harming or taking advantage of vulnerable consumers?

I have my doubts. This doesn’t look like a world-changing new innovation. To many people, it doesn’t quite sound like the future, but rather crypto’s last dying breath, a mad scramble to stay relevant as the world starts to wake up to its bullshit. Maybe instead of chasing fleeting trends, we should focus on building businesses based on real value, sustainable practices, and a genuine commitment to our customers.