Rebranding NFTs: What’s in a name?

What’s in a name? For NFTs, the term “digital collectibles” might seem like a simpler, more approachable label—but is it too limiting?

The world of blockchain began with typical coins and tokens, but it has evolved greatly—allowing art and other creative expressions to enter the space. This evolution led to the rise of non-fungible tokens (NFTs), digital assets that come in the form of music, art, videos, in-game items, and more. Like cryptocurrencies, NFTs can be freely bought or sold online.

Because of their non-fungible nature, NFTs are unique and cannot be replaced by anything else—making every NFT one of its kind. Unlike Bitcoin, which can be split into smaller units called satoshis, NFTs can only be bought or sold as whole units, further emphasizing their individuality.

What also sets NFTs apart is their role as certificates of authenticity or proof of ownership, recorded on the blockchain. Every time someone creates—or “mints”—an NFT, unique data is generated to represent the token and link it back to its original owner.

NFTs as digital collectibles?

Despite the unique name already associated with these tokens, many companies and brands have begun referring to them as “digital collectibles.” The term feels safer—simpler to understand and more broadly accepted by consumers.

In 2022, social media platform Reddit introduced “Collectible Avatars” on the Polygon blockchain, distributing them to millions of users for free through airdrops—a promotional tactic involving the delivery of free tokens to specific crypto wallets. These collectibles, though not explicitly called NFTs, were built on the same technology.

Similarly, The Rolling Stones launched limited-edition “Digital Certificates of Authenticity” (DCOAs) last year. According to The Block, the band intentionally avoided using the term “NFT” in marketing their blockchain-based assets.

In both cases, the items were NFTs in function, even if the branding avoided the term. According to NFT Plazas, this shift in language may be tied to the controversy surrounding NFTs. Critics have accused celebrities and companies of using NFTs as mere cash grabs, and the perception that NFT art lacks legitimacy has added to the stigma.

Beyond “digital collectibles”, other names have also emerged in the debate over rebranding NFTs. Terms like “digital artifacts”, “tokenized assets”, and “smart collectibles” have been proposed by industry players to better capture the technology’s essence or avoid the stigma associated with the NFT label. These alternatives highlight how varied interpretations of NFTs’ role and purpose continue to evolve.

Limiting scope

Yet some argue that renaming NFTs to “digital collectibles” oversimplifies what they represent. Jordan Yallen, CEO of blockchain technology firm MetaTope, warns that avoiding the word “NFT” risks creating a term that diminishes its broader potential.

In an article for Forbes, Yallen described NFTs as more than simple collectibles. They encompass identity, ownership, security, and access, all wrapped into a single token. As proof of ownership, NFTs verify authenticity and link assets to their rightful owner. As tools for access, they can function as digital tickets or membership passes. They can even serve as secure digital IDs, reducing fraud and counterfeiting.

Yallen argued that terms like “digital collectible” fail to capture this versatility. While it’s important to avoid overwhelming consumers with technical jargon, he emphasized the need to subtly inform them about the underlying blockchain technology they’re engaging with.

“We don't need to shove it in their faces,” he wrote, “but we want and need to encourage seamless web3 interactions. That means we can't hide the fact that people are interacting with its underlying technology. Just because digital collectibles can be NFTs, let's not give the impression that all NFTs are digital collectibles.”

A blockchain-based asset

Despite these concerns, it’s clear that companies and brands are increasingly leaning toward simpler terms. This choice may help them sidestep the stigma surrounding NFTs while making the concept more approachable to the general public.

Whether businesses adopt generic labels like “digital collectibles” or coin unique terms such as Reddit’s “Collectible Avatars,” one thing remains central: NFTs are defined by their blockchain-based nature. This foundation is what sets them apart from other digital assets like music files, videos, or digital art.

As the debate continues, the challenge for brands will be to strike a balance—simplifying the message without losing the essence of what makes NFTs revolutionary.