American Express ignores bull and bear markets, actively positions in NFTs: Invests in NFT platforms and launches multiple POAPs.

Despite being in a bear market, the total trading volume of the iconic NFT exchange OpenSea has dropped by over 85% compared to the same period last year. American Express continues to invest in and experiment with NFT technology. In addition to investing in the NFT platform OneOf through its venture capital unit, as the second largest credit card company in the United States in terms of transaction volume, American Express has collaborated with various major events (such as music festivals, sports events, etc.) over the years, issuing multiple POAP (Proof of Attendance Protocol) NFTs and integrating NFT platforms into its own credit card app.

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Extending a Helping Hand to NFT Platforms in Bear Market

The third quarter of last year marked a significant drop in NFT trading volume, with OpenSea experiencing an approximately 80% decline compared to the previous quarter. However, Amex Ventures, a venture capital unit under American Express, was willing to participate in a new round of strategic investment in the music NFT platform OneOf in August last year, totaling 8.4 million USD (approximately 270 million TWD). American Express also collaborated with OneOf in Turkey to host a flash event and distributed OneOf NFTs designed by local artist Selay Karasu.

Margaret Lim, Managing Director of Amex Ventures, stated, "More and more creators and brands are exploring the use of NFTs, which will create new consumer categories, business concepts, and membership systems. ... We believe that investing in OneOf can help American Express keep pace with the development of NFT businesses and develop new interaction models between us and card members."

Integrating Card Member VIP Benefits into Major Events to Launch Multiple POAPs

Since the investment, American Express has been actively engaging with customers through NFT technology. In fact, October this year marked the one-year anniversary of American Express issuing its own POAP NFTs. American Express has been collaborating with the POAP.XYZ platform since 2022, issuing POAP NFTs on Gnosis Chain (an Ethereum testnet) that comply with the ERC-721 standard, allowing users to transfer these NFTs to the mainnet by paying their own gas fees.

In October last year, American Express set up a VIP lounge and booth for card members at the Austin City Limits (ACL) music festival, distributing POAP NFTs, totaling seven. Subsequently, American Express also distributed multiple POAP NFTs at live events at the NBA 2K23 LAB pop-up store in New York and on Twitch streams, which players could use to claim in-game tokens in NBA 2K23.

This year, American Express has been intensifying its efforts to collaborate across different industries, launching POAP NFTs with more capabilities. American Express partnered with the U.S. Open Golf Championship, HYPEBEAST, and Metalwood Studio to introduce limited-edition golf merchandise that can only be purchased by holding specific American Express POAP NFTs. As of October 15, 2023, American Express has issued approximately 4600 NFTs.

Integrating NFT Platforms into Its Own Credit Card App

In the third quarter of this year, American Express began incorporating the Member Collectibles feature for managing NFTs into all American users' Card Member APPs. Through this feature, cardholders can connect their Ethereum wallets within the app (which currently supports dozens of wallets like MetaMask through WalletConnect) to view their POAP NFTs and unlock corresponding benefits.

Between September and October this year, American Express also distributed POAP NFTs on-site at the U.S. Open Tennis Championship and ACL music festival alongside their VIP lounges and booths. Both of these NFTs currently come with $15 transportation expense credits, and American Express claims that holders of these NFTs may be eligible for various other benefits.