The rise of the egocentric brand and consumer: the case of soulbound tokens (SBT)

Abstract

Purpose The development of the next Web 3.0 digital generation will be built on a decentralized society and blockchain technologies such as non-fungible tokens (NFTs) and “soulbound tokens” (SBTs). These technologies will enable a digital proof of personhood that would make it possible for people to differentiate themselves through their unique credentials and reputation. SBTs can include unique information relating to the user’s identity that can enhance consumer’s self-perception, uniqueness and reputation building. The literature remains scant on the underlying consequences of SBTs from a consumer behavior perspective, and consequently the implications for brands given rising egocentric consumer needs which this study addresses.

Design/methodology/approach This study adopted an exploratory approach using in-depth interviews with experts to increase our understanding related to SBTs, and their potential impact on consumers’ behaviors and brands’ marketing strategies.

Findings The findings unveiled an SBT-led egocentrism cycle comprising the following stages: penetration and proliferation of SBTs, consumers’ need for uniqueness and differentiation, brand’s reputation, brand’s personality matching, brand-based NFTs’ characteristics and shift in the competitive landscape for both consumers and brands.

Originality/value This research is among the first to study SBTs and their potential impact in the Web 3.0 environment where digital identities and ownership are decentralized and authentic.