As the market for cryptocurrencies and NFTs surges, Fashion brands are actively looking to digitalize and adapt fashion in the digital era to attract and connect with people from all over the world. But what exactly is an NFT and how does it relate to Fashion? And most importantly, why is everyone so eager to jump on this new trend’s bandwagon and invest in it? Here are some simplified answers…
What are NFTs?
By definition, NFTs stands for “Non-Fungible Tokens”. They are digital ONLY items that cannot be copied, hacked or replaced. It is all about uniqueness, scarcity and exclusive ownership of an item. For example, when you buy an NFT, instead of receiving a physical object you can wear, you will get a unique jpg/ png/ .mov/ 3D file that can’t be replaced with something else.
What is Fashion NFT?
Fashion NFTs refer to digital clothing items. They do not replace physical items. Instead, they offer designers an opportunity to represent themselves in the digital space and tap into a new market.
As mentioned previously, NFT introduced the concept of uniqueness and scarcity within the digital world. For luxury goods and artistic items, including Fashion, this has been extremely important and revolutionary, since it helps brands retain value of their creations and at the same time trade them and sell them.
Fashion NFTs in gaming
With covid forcing people to confine at home for months, gaming became very popular among the young generations and a valuable life-line for people over the last year. And since gaming is entirely digital, it has highly impacted the digital Fashion industry. High-end brands are creating digital fashion skins for avatars or wardrobe collectables that can be used in gaming and multiple metaverses. The likes of Gucci, Louis Vuitton, Balenciaga and Nike have already dipped their toes in, often partnering with popular games like Fortnite.
Why are people investing in Fashion NFTs?
The reason why everyone is rushing to buy Fashion NFTs is tied to the newness factor. We are currently witnessing the first-ever digital fashion being created. “Imagine owning the first fashion NFT and then finding out in 10-15 years that it is worth ten times more than you paid for it, the same way a piece of art from an emerging creator might be,” some experts commented.
Pros and cons of Fashion NFTs
One of the most important benefits of Fashion NFTs is that it helped reduce garment waste and animal abuse, since it is a digital creation that doesn’t require the use of any fabric. It also solved the problems of manufacturing and shipping since NFT can make virtual items as unique as tangible products.
On the other hand, the NFT process requires a huge amount of energy which might be damaging to the environment. Moreover, hacking in the form of cyberattacks and digital theft constitute genuine concerns.
And what about you, would you consider investing in Fashion NFTs in the future?
