What are Fashion NFTs?
Fashion. The industry that can always surprise you. While a few years ago it would cause many gurus to laugh at the idea that the industry will have anything to do with cryptocurrency, nowadays, with the rise of NFTs, we see that things are changing.
Surely, it is still a bit far away from the volatile Bitcoin or the dollar-pegged USDT/Tether. While you can still buy USDT and use it to purchase fashion goods, there is something far more interesting at the moment – the NFT world.
But what is NFT?
Non-fungible tokens, otherwise known as NFTs, are a special class of crypto-tokens. Whereas regular crypto-tokens function like currency, these crypto-tokens represent ownership of something else entirely. They can be programmatically traded on the blockchain, and their value is derived from the thing they represent. Some examples of NFTs include artwork, real estate, pets, and collectibles. The main blockchain used to mint NFTs is Ethereum.
NFTs were inevitable
The inception of NFTs into the fashion realm was inevitable, especially as fashion companies like Shopify work to provide a seamless e-commerce experience for brands that sell both digital and physical goods. Now, people are getting used to the idea of being able to buy, sell, and trade unique digital assets that show off their interests or lifestyle.
Fashion brands riding the trend
The popularity of non-fungible tokens (NFTs) among major fashion brands is growing. Gucci, one of the world’s largest fashion houses, sees NFTs as a worthwhile investment and believes that its competitors will soon follow suit. It represents an exciting dilemma for brands that wish to gain an advantage from NFT hype without getting lost in the crowd.
What could fashion houses benefit from NFTs?
Luxury brands, such as those in the fashion industry, are constantly battling against fake goods. Even governments are losing the fight against counterfeit products, and no company is immune to this problem. However, blockchain technology can be used to fight back. Products that may have been previously counterfeited or copied can now be guaranteed as real if they adhere to a set of rules because they are minted on the blockchain.
Luxury brands can increase their long-term profits by using blockchain to improve the sustainability of manufacturing. Instead of producing excessive goods that have to be destroyed, brands will only produce the numbers that have been ordered. Since the blockchain provides a universal platform, luxury brands can maintain a healthier relationship with their consumers, who are more and more concerned about the environment.
First NFT fashion purchase
NFTs have only become popular in the fashion industry within the last three months, but it was first announced in March 2019, when Dapper Labs and a digital couture house called The Fabricant collaborated to create iridescence the first digital outfit that was sold on blockchain. The design was auctioned off for US$9,500 and has been displayed on a portrait ever since.
Non-fungible tokens, otherwise known as NFTs, are a special class of crypto-tokens or tokenized equity. Whereas regular crypto-tokens function like currency, these crypto-tokens represent ownership of something else entirely.
May 2019: First Luxury Authentication
French conglomerate LVMH launched Aura, a blockchain system that allows consumers to trace the origins and lifecycle of their purchases. The platform is designed to provide an immutable record of authenticity that governments, regulators, and companies can use to ensure that items are genuine. The technology stores information about a product’s place of manufacture, materials used in its creation, transportation history, and more.
Digital Fashion investments?
The growing interest in non-fungible tokens (NFT) is tied to the fact that we are currently witnessing the first digital fashion being created. Unlike other art forms, fashion has a new narrative behind it: every item of clothing has an origin story, and since each NFT is unique, collectors can now own something that is completely exclusive. And as we know from history lessons, exclusivity might often increase the original price tenfold.
Fashion NFT marketplaces
Marketplaces like OpenSea and Rarible arrived on the scene, ensuring everyone would have access to buy and sell these assets.
Other marketplaces that have allowed users to create and sell their own products, first as virtual goods and then as non-fungible tokens (NFTs), are those like THE DEMATERIALISED and LuxFi. This company has established an ecosystem that enables consumers to buy, sell and invest in luxury assets through NFTs.
Fashion NFTs are on the rise. With a growing industry, we can expect more and more fashion houses to get involved. The environment-conscious nature of the industry will draw even more brands in, as they strive to manufacture new designs that are good for the environment. There is no way to definitively say what will happen next, but we can be sure that this innovative industry will keep growing with time.