By the end of 2021, the market for NFTs nearly equaled that of the traditional art market. It might seem that the world of Giacometti and Koons is lightyears away from the Bored Monkey NFT, but they share the same principles of collecting: exclusive, original, authentic, and rare.
And it’s no wonder that luxury brands are looking to get in on this collector action.
According to Morgan Stanley, the NFT market has a whole will hit $240 billion by 2030 with luxury brands expecting to account for $56 billion of that share. As the Metaverse continues to gain in popularity and people move increasingly online, they’ll create avatars that can use NFTs to dress themselves, drive (or fly) around, or trade in whatever the verse provides. The potential is truly limitless.
A New Luxury Experience
The new Metaverse might sound a little nebulous, and in many ways, it is supposed to. The current internet experience revolves around social media and connecting with anyone another. Think Facebook, Instagram and Tik Tok. The Metaverse, or what is called Web 3.0, builds on that foundation but creates a virtual shared experience instead of the current model which is sharing individual experiences on a common platform. Think video games that are vastly open and infinitely customizable.
NFTs, or non-fungible tokens, are distinct cryptographic assets that exist on a blockchain and are used to signify ownership of a digital item. In the digital world where everything can be copied and shared with a click of a button, NFTs provide the opportunity to create something that is exclusive, rare, and authentic. For luxury brands, this is the key opportunity of NFTs.
Image is Everything
In the virtual digital space, people can dress up and personalize their avatars, and luxury brands are starting to get in on this trend. Even though these worlds can take many shapes, a fairly common element is where someone can create an avatar, a pixel person in the virtual space, that wears clothes, glasses, and shoes and can carry purses, backpacks, or wallets. In much the same way a person gets up and goes to work or plays basketball on the weekend, an avatar can change depending on the environment. Going to a business networking event? Dress your avatar up in the smartest business casual. Going to a music meet up? Put on that virtual band T-shirt.
But in the virtual world, rare and luxury virtual clothes will come with a cost.
For example, Gucci has sold virtual models of real products in the Metaverse. Because these NFTs are unique, they can be sold or traded, often with a markup. Karl Lagerfeld even got into the action, selling 777 NFTs of his clothing to be worn by avatars in the Metaverse. People want to be fashionable in luxury brands even in the virtual world. Ray Ban, Louis Vuitton and Prada have all created luxury NFTs.
The Luxury NTF Market for Adults
It might not seem like it, but as in many technologies before the Metaverse, the adult entertainment industry is pioneering NFT use in the luxury market. NFTs, cryptocurrency and the adult entertainment industry intersect in unique ways: it’s decentralized, anonymous, and secure. Using Blockchain technology means activities can’t be traced to the individual. This allows adult content creators to better control their work while allowing for more direct interaction with fans.
For example, No Limits Crypto, NFT and blockchain-enabled BDSM (think 50 Shades of Grey), recently launched and provides a new type of matchmaking for the Metaverse. Founded by artists and creative individuals looking to explore this space further, No Limits Crypto is helping to push NFTs into more adult usage by offering a new, secure platform for adult creators.
Much like a Gucci belt or Lagerfeld outfit, No Limits Crypto outfits individuals with a unique digital collar. This collar is paired with a similar match in a submissive and dome pairing that established ownership. Other artists have dropped artwork, albums, or clothing, No Limits Crypto drops NFT collections of subs and domes. BDSM enthusiasts—both users and creators—benefit from anonymous, secure, and exclusive private chatrooms in an innovative space that provides cutting-edge technology to safely explore fantasies.
Whether it’s Gucci glasses, BDSM-themed collars, or Ray Ban sunglasses, luxury NTFs in the Metaverse are here to stay. Because the Metaverse is a decentralized space where anyone can interact through their avatars, the power is in the hands of the creators to give people new and exciting items that wouldn’t be possible in the physical world. (A Prada car? Sure, why not!) One thing is for sure, the exclusivity, rarity, and authenticity will continue to drive this market and bring in all types from collectors to users to creators. Soon, owning a highly sought after NFT will be like owning a Warhol.