The NFT phenomenon. Non Fungible Tokens move staggering amounts of money in the world of fashion. Or rather: cryptofashion. Burberry, Balenciaga, Gucci, Louis Vuitton, and the more recent cases of Karl Lagerfeld and Dolce & Gabbana, have now made them the “case” for digital fashion in 2021. All this, within a potentially huge market that is still to be developed. And to be understood, with all the fears and risks that this entails. So: what are NFTs and why is fashion investing in them?
What are NFTs?
NFT stands for Non Fungible Token. Meaning: files with the JPEG extension (that of digital photos), encrypted and protected by blockchain. This way, the file is absolutely unique and non-reproducible. Therefore, by virtue of this uniqueness, it has a market value also (and not only) from a collectors’ point of view. “Fashion brands are just beginning to understand NFTs,” Richard Hobbs, founder of specialist platform bnv.me, tells Fashion United. Hobbs advises brands to hurry up, because “the wave is coming now: now is the time to surf NFTs“.
In addition to Dolce & Gabbana, another recent example of a successful NFT is The Dematerialized platform, which is about to put Karl Lagerfeld’s (pictured) third NFT up for sale. The first two were very successful. The second launch (77 pieces at €177 each) sold out in 33.77 seconds.
Doubts and bans
The world of NFTs, however, is already gathering clouds. “The money laundering activity that can be done with cryptocurrencies can also be done with NFTs,” explains the portal ilovetrading.it. Among other things, cryptocurrencies have come under the crosshairs of financial authorities in China, which has banned them, as may soon happen in Russia. This is generating fears that their development may also be curbed”.
Image from wwd.com