NFTs or “Non-fungible tokens” are becoming increasingly popular nowadays primarily because it provides buyers, mostly artists and collectors, with a kind of digital protection in the metaverse. This is one practical reason investors hold onto that makes them feel at ease when it comes to protecting the originality of their work.
The same goes for designers in the fashion world. Big names in fashion have created their own NFTs for various reasons. In this article, the influence of NFTs amongst designers will be discussed, along with how these sudden creations of NFTs impact the fashion industry.
How did it start?
Most of you will wonder how all of these started. Well, here it goes. It all began when a designer and a digital artist named Fewocious from Rtfkt, a design firm, dropped and launched the very first NFTs of the fashion industry. It wasn’t just one NFT, but three, sold for roughly $5,000 to $10,000.
It didn’t end there, though. What caught the attention of other designer brands was its success when it launched a runway that sold 621 pairs of digital shoes. Since then, other luxury brands have promoted and sold their own NFT artworks that offer authenticity to each product. These NFTs are even the main reasons why these designer items had the power to increase their value.
It has then become a trend, especially for the younger generation, who are more connected to the digital world and social media. Most consumers come from this bracket, whereas they create digital versions of themselves wearing 3D clothing from different luxury brands. Thus, this makes them not just a part of the actual luxury world but the digital luxury world.
However good as it may sound, there are still factors to consider. NFT in the fashion world does not only pose positive impacts, but it also has its downfall as well. So, what are these factors? Here are some of them.
1. The price
NFTs sold by luxury brands are expected to be as expensive or even more expensive as the products they offer. Thus, before getting one, you should always consider if it is a good investment. Do your research, and always get notified of new updates. To know more about it, always check out reliable sources like NFT Price, as they frequently post the latest stats and guides for every NFT in the market.
2. The benefits
So, what are the benefits that NFTs bring to the fashion industry and successful luxury brands? Aside from building the social status of their buyers in the technology space, there are much more promising benefits that one can acquire from it.
- The first one would be NFTs allow these brands to represent their luxury pieces with authenticity and ownership through digital files.
- Second, NFTs enable these luxury brands to produce vouchers or badges that allow their customers to access private events, communities, discounts, and the first glimpse of new products and the latest releases. Thus, it is an advantage for consumers who want to be the first ones on trend.
- Lastly, NFTs increase the value of these luxury items as it creates digital scarcity, whereas it is believed that when there is scarcity, there is value.
3. The cons
Despite the promising advantages that these NFTs bring, always keep in mind that there are disadvantages as well.
- The first one would be the risk. Yes, investing in NFTs has risks because their value is volatile. It may change from time to time, most especially if the NFT is being sold multiple times.
- Second, NFT decreases the main purpose of fashion which is touch and feel. Fashion is believed to be experienced and appreciated by seeing and wearing it in actuality instead of having it in the digital space.
- There are counterfeit NFTs. Just like in the real world where there are counterfeit luxury items, NFTs can be easily copied as well. However, these fakes can’t acquire authentic signatures. This is the main reason why before purchasing one, make sure to investigate if it is really from a legit and verified seller.
- Lastly, NFTs cause negative environmental impacts. With every mining and transaction of these NFTs, fossil fuels are rapidly increasing, which causes fuel emissions that aren’t good for the environment.
Overall, these NFTs really have created an impact on the fashion industry, both positive and negative. It enabled bigger and more advanced opportunities for fashion brands and for people who have the capability to acquire them. However, it is important that you should consider the negative impacts it causes, especially in the environment. Thus, before purchasing one, you must weigh if it is really a practical investment. Moreover, use the factors provided above as your reference if you’re planning to purchase a fashion NFT.
Published by HOLR Magazine.