Erik Weijers, 4 months ago
Renowned American jeweler and luxury brand Tiffany's will this week issue a limited edition of 250 pendants of CryptoPunks. The so-called NFTiffs are first minted as an NFT, which entitles owners to the piece of jewelry. The price? 30 ETH. Only owners of CryptoPunks are eligible for the purchase.
Of course, Tiffany's replicates the CryptoPunk of the buyer in question. The goldsmith who makes the pendants uses diamonds, various gemstones and enameling of the 'pixels' to mimic the Punk as closely as possible.
How does authentication work? Because it is publicly visible whether someone has a CryptoPunk in his or her wallet, Tiffany can verify who qualifies as a buyer. Customers can buy up to three NFTiffs, provided of course they own three Punks.
Tiffany's cleverly exploits the fact that owning a CryptoPunk - that is, the original NFT, not the pendant - is now a status symbol. In June 2017, anyone with an Ether wallet could mint them for nought. And although the price of Punks is no longer as high as it was during the euphoric market peak of 2021, the bottom price is still around 70 ETH. Not bad for a jpeg.
Each of the 250 NFTiffs is a digital artwork in itself: it is inspired by the Punk's pendant in question. In addition, the NFTiff is the certificate that entitles you to the real world pendant, which is sent to you in the mail. The real world pendant is probably what the buyers are about. They probably have enough NFTs already and a pendant like this is a nice opportunity to show off in the real world for a change: I own something of value! Since their mother-in-law is not on Twitter, she is probably more impressed by a diamond-encrusted pendant than by a pixelated profile picture.
You, consumer of crypto news, know better, of course. Sure, a jpeg is not "real". But consider this: the reach a person has with their online status symbols is much greater than with their real world status symbols. Ten years ago, a rich person bought a Rolex. How many people saw that Rolex? Maybe a few hundred, maybe thousands. Today, an influencer on Twitter or Insta buys a CryptoPunk or BoredApe and sets it up as their profile picture. The number of people who see this flex is an order of magnitude higher than that of the Rolex owner.
Tiffany's is one of many luxury brands that have gotten into NFTs. Gucci, Luis Vuitton and Burberry have also already made moves. According to crypto trend watchers, so-called redeem-and-retain NFTs are becoming a growth market. Luxury products in particular will benefit from a "twin NFT". Like the NFTiff, this is then a joint purchase: the NFT and the physical item are inextricably linked - even in the event of a resale.
Nic Carter gives the example of an NFT of a luxury pair of sneakers. Buying the NFT gives you instant access to the online version of the sneakers, which you can wear in a game or other metaverse application. But the NFT also gives you the right to the sneakers themselves. Those are delivered at your home. There is a chip in them that proves you have the NFT and thus can function, for example, as a ticket for events.
The NFT game has really only just begun....
Nov 25, 2022
Mattel creates toys and holds the rights to some of the most successful international brands like Barbie, Hot Wheels, Fisher Price and UNO amongst others. It was this Monday when the company announced that it would enter crypto and become a part of Web3.
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