Starbucks Plans on Getting into Web3: Which Chain Will They Use?

Starbucks is the latest company seeking to harness the power of Web3 and Crypto.

Covered:

  • Starbucks Brews up Web3 Strategy
  • Green Blockchain Required

Starbucks Brews up Web3 Strategy

On its Q2 earnings call, Starbucks announced it is pivoting to embrace the Web3/NFT space. With the idea of re-imagining community, loyalty programs, and consumer engagement, Starbucks explained their strategy. The idea is to use Web3 to “extend its brand’s concept of the “third place” — meaning a place between home and work where people can feel a sense of belonging over coffee.”

Starbucks Chief Marketing Officer Brady Brewer pitched the idea to investors on the call. “We are creating the digital third place. To achieve this, we will broaden our framework of what it means for people to be a member of the Starbucks community, adding new concepts such as ownership and community-based membership models that we see developing in the web3 space.”

Surely at the root of this will be NFTs. Starbucks plans to focus specifically on ensuring these NFTs are for utility rather than just speculation. They plan on crafting an entirely ‘adjacent’ business that is accretive. The NFTs would be something along the lines of an “access pass providing customers with special experiences and perks.” This is supposed to be rolled out later this year.

In a blog post, the company stated: “We plan to start with our first NFT collection, membership and community later this year, based on coffee art and storytelling. It will come with a host of unique experiences and benefits, worthy of a genesis NFT collection from Starbucks.” The company also made it clear they are looking to onboard a new CEO who “should have an understanding of web3 technologies, as they could help Starbucks better connect with younger people.”

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Green Blockchain Required

Reports indicate Starbucks is taking a long-term systematic approach to their foray into Web3. Their blog post on the topic indicates they have the right people leading the task. “We are fascinated by how NFTs allow people to own a programmable, brandable digital asset that also doubles as an access pass.” In their words, the idea is to build a “digital ecosystem to complement Starbucks current digital platform offering.”

Starbucks made it clear they are going to build this ecosystem on an “environmentally sustainable” web3 platform.” They also noted their goal is to be chain agnostic. It is highly likely Starbucks will select a chain with proven compliance and regulatory assurance. Rumors are swirling that the seemingly random pump of Algorand ($ALGO) today in a completely bloody market is actually a result of being tied to this Starbucks buzz.

Anthony Scaramucci, billionaire hedge fund manager and investor in Algorand, tweeted on May 3rd that he would soon announce a “game-changing” NFT project launching on Algorand. He then followed up with a succinct tweet: “Algorand is a green blockchain.” Many are connecting the dots. Of course, it is just speculation. However, considering the heavily entrenched corporate roots of Algorand’s new CEO, Staci Warden, the rumors are justified.

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