August 31, 2022
By Sharan Kaur Phillora
Despite the continued cryptocurrency winter, non-fungible tokens (NFTs) are still generating some interest among high-profile companies. Luxury brand names such as Gucci and Tiffany have recently announced plans to launch NFTs, and they’re betting that the hype surrounding blockchain technology will help them attract customers who might otherwise not consider buying their wares.
Here’s what we know
The crypto slump has been a long time coming. Cryptocurrencies have suffered a brutal comedown this year, losing $2 trillion in value since the height of a massive rally in 2021.
Macroeconomic factors like inflation that caused the U.S. Federal Reserve and other central banks to hike interest rates, causing investors to flock to safe havens, have also played a role in the decline. But it’s the rise of regulatory scrutiny and crackdowns on scams and fraud that has really hurt cryptocurrencies’ reputation.
Luxury brands are embracing blockchain despite the crypto slump.
Gucci marked its entrance into NFTs by auctioning its short film Aria as an NFT. The four-minute video was created and co-directed by Alessandro Michele, the brand’s creative director, together with photographer Floria Sigismondi. The NFT sold at Christie’s for $25,000 in June 2021.
Jimmy Choo’s venture into the NFT world was in collaboration with New York City-based artist Eric Haze. The winner of the sold-out collection received an exclusive sneaker designed by Eric Haze as well as a physical custom copy of the shoes, as well as 8,888 NFT mystery boxes containing the brand’s famous stilettos.
Gemfields, the global gem and ruby supplier, announced a series of six rhinos in its NFT collection last year. It was modelled after real animals from Zambia and was in honor of their Chipembele, the largest uncut emerald that holds the Guinness World Record. The money raised went towards the North Luangwa Conservation Program.
Tiffany & Co., one of the most iconic luxury brands on Earth, released its own NFT next year. The company partnered with London-based startup CryptoKitties to create the first-ever NFT based on a cat. The limited edition cat was named “Crypto Kitty” and was made available for purchase via a lottery system.
With iconic names behind them, it seems clear that NFTs aren’t going anywhere anytime soon. In spite of the crypto slump, luxury brands are embracing blockchain despite all the bad press.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
