2021, The Year Of Fashion NFTs

This has been the year of NFT fever. But what are NFTs, why is everyone rushing to cash in, and what do they mean for an industry that has remained resolutely physical for so long?

Source: Theinterline

On 10th September 2021, Karl Lagerfeld NFTs, totalling 777 pieces, priced 77 euros each, sold out in 33.77 seconds. Dropped on THE DEMATERIALISED, a digital fashion marketplace, Chromatik Karl and Ikonik Karl NFTs have quickly become the blueprint for those chasing the NFT dream because they either have a FOMO (fear of missing out) or they understand that the power of digital ownership creates opportunities.

Dismiss or Invest in NFTs

2021 has been the year of NFT fever. With Google searches for NFTs on the rise, the NFT market has seen $2.5 billion in sales in the first half of 2021, compared to the $13.7 million sales of the year before. With the fashion industry attempting to uncover the technology’s potential, it comes as no surprise that after making their debut into the virtual world, Karl Lagerfeld has already confirmed that another drop is underway. 

As successful as the Karl Lagerfeld NFTs were, it is important that brands first understand that NFTs relate to fashion differently than other industries that are more accustomed to selling digital goods. This is mainly because traditional fashion brands, famously rigid in digital adoption, are finding it hard to let go of physicality. Consequently, those observing this space are usually wondering, what are NFTs, why is everyone rushing to cash in, and what do they mean for an industry that has remained resolutely physical for so long?

NFTs are Non-Fungible Tokens; non-fungible refers to one of a kind, a unique digital asset. More than just a run-of-the-mill crypto coin, NFTs are digital files created as jpg, png, .mov or 3D fashion files before being minted (attached) to a blockchain. As digital assets, NFTs are managed and authenticated via digital ledgers or blockchains, held in digital wallets the same way cryptocurrencies and other tokens are, and they function as valuable items traded within the digital space.