With 95% of NFTs worthless, luxury fashion is finding other uses for web3
The past year has been a low point for the cryptocurrency and web3 sectors. A report from this month found that 95% of all NFTs are essentially worthless. The sell-off of defunct crypto exchange FTX’s assets is driving value down across cryptocurrencies like Bitcoin. Even major brands like Nike have seen their more recent NFTs sell at much lower values than earlier collections.
Amidst this downturn in NFTs, luxury fashion brands are finding other uses for web3 technology. While NFTs were initially seen as a way for brands to engage with their audience and monetize digital assets, the current market conditions have forced brands to explore alternative applications.
One example of this is the collaboration between luxury jewelry brand Tiffany & Co. and the popular NFT collection CryptoPunks. Tiffany & Co. released a limited edition necklace featuring a rare CryptoPunk NFT as a pendant. The necklace quickly sold out, despite the CryptoPunk NFT being worth significantly less than its original price. This demonstrates that luxury fashion brands can still leverage the popularity of NFTs to drive sales and create buzz, even if the underlying value of the NFT itself is diminished.
Another way luxury fashion brands are utilizing web3 technology is through virtual fashion shows and digital clothing. With the rise of virtual reality and augmented reality, brands are able to showcase their collections in immersive and interactive ways. Digital clothing, which exists only in the virtual space, offers new possibilities for fashion brands to create unique and customizable experiences for their customers.
By embracing web3 technology, luxury fashion brands can continue to innovate and connect with their audience in a rapidly changing digital landscape. While the current state of NFTs may be discouraging, it has also opened the door for new and creative applications of web3 technology in the fashion industry. As brands adapt and explore these possibilities, they will be able to stay at the forefront of digital innovation and provide unique experiences for their customers.