web3

Battle of the brands in web3 - Frauds & Engagement

technology
5 min
Yuxiao Zhang

For those of you who are just tuning in, earlier this week we ranked the best luxury fashion brand in web3 and dived deeper into purchasing power yesterday. We’ve decided not to keep you all waiting and have combined our last two analyses (frauds and engagement) together for the final post. We’ll start with frauds and bad assets. (Btw, if you love analytics then don’t let love pass you by. Reach out to claim a priority spot on our product waitlist!)

As you know, the web3 space has been rife with scams and hacks, so we wanted to take a look at how they impacted fashion brands. 

A big part of brand strength is brand image and how consumers perceive their experience with the company’s products. Any brand looking to grow brand strength should try to minimize events that could harm their customers’ experiences. In web3, that means minimizing spam, phishing and counterfeit tokens. 

We’re not looking directly at how many customer wallets were hacked because that’s not something the fashion brand can really control as it’s more of a layer 2 front end issue. Just like if you saw an item on Nike’s homepage but bought the item through Amazon and Amazon is where the hack occurs.

Instead, we looked at the top 10 other collections that each brands’ wallets participated in and dug into each contract to identify potential bad assets. The results were surprising. Out of all the tokens in the top 10 other collections for Tiffany’s owners, 71% of them were tagged as spam, phishing or fake by etherscan. 


Example of a bad asset tagged (red box) by Etherscan:

It’s clear to see that D&G is our winner in this category and while it’s going to be hard for any of these brands to secure their users’ wallets on their own, they should keep this metric in mind as a barometer for their users’ experience in web3. It is not a direct reflection on the brand, however we believe it could make their customers more likely to churn from web3, causing brands like Tiffany’s to lose influence in the space. Advice, track it and try to influence it.

Engagement

As we round up our Battle of the Fashion Brands in web3 analysis, we turn to our final metric, engagement.

When it comes to customers, companies should care about acquisition, engagement and retention. We’ve decided to focus on engagement for our analysis as we believe continued engagement levels results in better retention and is a sign of good customer experience. That positive experience will then drive acquisition through word of mouth creating a flywheel effect. At least, that’s what we believe, but we’re open to your thoughts :) 

We use Daily Active Wallet (DAW) to measure engagement by taking every wallet in each of the 4 brands and tracking whether or not they made a transaction with a web3 product. Then we took that number and divided it by the total wallet population of each brand to find out what percentage of their users are engaged. Here were the two week results leading up to our analysis. 


D&G was our winner over this time period, having captured the top spot 9 out of the 14 days in the past two weeks. 

And with that, we conclude that D&G was our winner having claimed top spot in the majority of our analysis areas. Stay tuned for our next analysis and if you have ideas for us, we’d love to hear them!