Standing on the long river of time and looking back at history, 2021 may be called the first year of NFT commercialization . In this year, everything can be NFT: sounds, images, text, game props, artwork, toys, etc. It can be said that the field of NFT is as wide as the human imagination is : from digital art, collectibles, virtual property to cultural entertainment, identity verification, insurance, and infrastructure, NFT has a wide range of application space and value.
Auction NFT Works Picture Source Network
No one expected that under the pressure of the epidemic, the luxury goods industry could take advantage of the power of NFT to buck the trend in 21 years.
How big is the NFT market?
According to the “NFT Industry Development Report 2021” released by Carbin VC in June today, the NFT market has grown by multiples year by year . From 2019 to 2020, the total USD transaction amount has risen from 62.86 million U.S. dollars to 250 million U.S. dollars, an increase of nearly three times. According to NoFungible data (excluding project data such as NBA Top Shots and Nifty Gateway), the NFT market transaction volume in the first quarter of 2021 alone will exceed 8 times that of the full year of 2020, which is approximately US$2 billion. As of April 2021, SuperRare , MakersPlace other six NFT art platform encryption 190,665 works of art were sold, with a total market value of $ 550,039,020.92.
At present, the largest use of NFT is still concentrated in the fields of digital art and games, but you must not be blinded by the prosperity of these two fields. Before you know it, major international luxury brands are quietly conquering the NFT field. NFT on the luxury chain is gradually becoming a wealth password across the dimension.
NFT originator cryptokitties (cryptokitties) image source network
What is luxury + NFT playing?
The valuable things in the world can be divided into two types, one is homogenous, and the other is non-homogeneous. For example, potato chips of the same flavor on store shelves are the same in appearance and numerous in number, and no one can find even if one of them is packaged. This kind of assets is called homogenized assets, and it can also be called a kind of thing in law . Their biggest feature is that they can be divided and swapped. Stocks, currencies, etc. fall into this category.
There is another thing completely opposite to this. There is only one in the world without a semicolon. Any similarities must be pirated, such as the original Mona Lisa at the Louvre in Paris, such as the unique you in the world . The biggest feature of this kind of items is their indivisibility and irreplaceability: you can meet many people who are still alive in your life, but the one you love the most in this life is always the one he/she loves the most . This is called a non-homogeneous asset, which is also called a specific thing in law. It cannot be tampered with, is indivisible and unique.
Excluding commercial marketing and hype, to put it bluntly, the luxury goods industry is able to control the wealth code for hundreds of years by making a certain kind of thing into a specific thing. As the saying goes, it is to understand the “scarcity”.
What else is more suitable to join forces with luxury goods than NFTs that are born with unique, indivisible, and non-tamperable attributes?
Screenshot of NFT game Louis The Game
Large-scale cross-border layout of NFT for fashion luxury goods
Nowadays, if you dare to be the first in the luxury goods industry, you have to watch Gucci’s performance. Gucci should be the world’s first major luxury brand to set foot in the NFT field. As early as May of this year, Gucci’s first NFT work was led by its art director Alessandro Michele with the “Aria” series as the theme, through a video format. Present. The entire video is about 4 minutes long. Under the warm daylight, white horses, peacocks and girls in costumes show the brand’s consistent sense of luxury. This year coincides with the 100th anniversary of Gucci. Choosing such a time node to release the first NFT work in the brand history, Gucci conveys a time-honored brand concept to the world.
A great brand is inseparable from a great parent company. Kering, to which Gucci belongs, has begun to deploy blockchain in the past few years. Utilizing its full traceability and traceability technology, it continuously expands the new situation of the integration of luxury goods and technology. Kering has long used AR (Augmented Reality Technology) for product display and sales, and has also sold the famous $12 virtual shoes. Such a keen sense of smell and advance layout may be the reason why Gucci and other brands have always been able to walk on the forefront of the fashion industry.
GUCCI virtual shoe image source network
Gucci put its first NFT work on the Christie’s auction website and auctioned it at a starting price of US$20,000. At the same time, the brand announced that it would donate all the proceeds from the auction to UNICEF. At present, the NFT has been auctioned, but the official did not disclose the specific auction price. It now appears that Alessandro Michele, who has always had a pioneering design concept, has made a good start for Gucci’s next century.
2.LOUIS VUITTON & BURBERRY
Compared with Gucci, LV and Burberry obviously took another completely different “out of the circle” path. The two first-tier big names actually started the NFT game “without doing their jobs properly ,” and they are still doing well.
British luxury brand Burberry launched a limited edition of NFT works in the blockchain game Blankos Block Party in conjunction with game company Mythiacal Games at this year’s Electronic Entertainment Expo in Los Angeles. The NFT work is called Burberry Blanko, and it looks like a stylish little shark. Players can purchase, upgrade and sell the NFT work in the game.
Screenshot of Burberry cooperative game
According to official Burberry news, it will continue to strengthen cooperation with Mythiacal Games and launch more NFT accessories, such as jetpacks , clothes and slippers.
Burburry game single product screenshot
LV is even more remarkable. If Buberry participated in a game, “Donkey Card” directly made a game , and also put the glory of the king from the top of the iOS free game list , which can be described as a brilliant record. In order to celebrate the 200th birthday of LV founder Louis Vuitton, in early August, it released its self-developed free story interactive online mobile game ” Louis The Game”.
Screenshot of NFT game Louis The Game
What is your first LV? According to reliable sources, Sister Sa’s first LV was the classic century-old diamond pattern “Mummy Bag” NEVERFULL. But in today’s digital age, your first LV may not be a bag
Sister Sa’s first LV package NEVERFULL Picture Source Network
Haunted LV told us that whether you have money or not, you have the opportunity to own a high-end and fashionable LV item for free. It is reported that Lv put 30 NFTs in “Louis The Game”, of which 10 are from the digital artist Beeple ( yes, that’s the man whose work was sold for more than 400 million yuan ). It is estimated that the value of these 30 NFTs is between 20,000 and 20 million U.S. dollars. As for the acquisition method, LV said that during the player’s play, the NFT works will be presented to the winning players in a fixed-period lottery. Getting rich overnight is not a dream. Screenshot of the NFT game Louis The Game
Benefits will always coexist with risks
NFT+ luxury goods may be the next trend, but the benefits will always go hand in hand with the risks. Luxury brands have legal risks that need to be avoided while mastering the traffic password .
1. Money laundering risk
The LV special artist Beeple mentioned in the previous article sold more than 400 million high-priced NFT artworks “Every Day: The First 5000 Days” as an example. The auction platform only accepts virtual currency for purchase, so the problem of money laundering of virtual currency also exists. NFT field.
NFT artwork “Every day: the first 5000 days” by NFT artist Beeple
In the anti-money laundering work of traditional financial institutions, one of the keys to combating money laundering is to determine whether the transaction price is reasonable. Traditional luxury goods can easily be used as a tool for cross-border money laundering. The combination of NFT and luxury goods has a huge premium, and often the auction prices far exceed the psychological expectations of all parties. Therefore, it is difficult for us to find clues of suspected money laundering through the law of its transaction prices, and it will be very difficult for supervisors or investigators to track such transaction chains. From this point of view, the luxury NFT itself has the potential to become a money laundering tool and must be treated with caution.
2. Financial risks
Commodities can be further divided into ordinary commodities and financial products according to their specific uses and transaction characteristics. The latter refers to various non-physical assets that have economic value and can be publicly traded or redeemed, also called marketable securities. Is the nature of NFT a commodity or a financial product? This issue is currently very controversial. Sister Sa has already emphasized in the previous sharing that the supervision of financial products and ordinary commodities in various countries in the world is completely two concepts.
The supervision of financial products in various countries is strict, rigorous and prudent. As far as China is concerned, once NFT products are over-financialized or even regarded as a financial product, they will no longer be subject to the “E-Commerce Law of the People’s Republic of China”. The adjustment of the law belongs to the field of financial products . NFT works themselves are special enough. Due to their high premium and ubiquitous brand value additions, the price determination mechanism of NFT+ luxury goods is more likely to deviate from the supply and demand factors at the output level, and depends more on the corresponding market. The size of funds. Therefore, it obviously has greater financial risks than ordinary NFT works.
Write at the end
In the face of shocking auction records and big data, the cross-dimensional combination of NFT + luxury goods has indisputably ranked among the wealth codes of the new era. At the moment when the top international luxury brands are deploying NFTs, it is easy to produce a leading effect in the entire fashion industry, prompting a large number of prepared and unprepared companies and brands in the fashion circle to rush into the NFT field.
For NFT and the fashion industry, blind entry is by no means a good thing. Here we can’t help asking: If the big luxury jewelry brands can understand the value of NFT, can they make the NFT industry better and better for a long time? Sister Sa’s legal team insists that, for NFT to develop, the premise is legal compliance . On the one hand, the country must issue corresponding policies and regulations as soon as possible to clarify the nature of the NFT and establish a standardized regulatory system; on the other hand, companies and fashion brands must do a good job in compliance before setting foot on the NFT to prevent touching the bottom line of the law.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nftluxury-the-password-of-wealth-across-the-dimension/
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