Thread by JackGK.eth III 🦉🥃
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- May 11, 2023
- #Non-FungibleToken
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Why are luxury brands still getting involved in this space, during a pretty grizzly bear? 🐻
Luxury, Scarcity & The NFT Space a 🧵
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Luxury, Scarcity & The NFT Space a 🧵
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Scarcity has long been a central element in defining luxury. Limited availability enhances desirability, driving demand and value.
Think Rolex, where scarcity is crafted meticulously, making their timepieces more than just watches – they are status symbols.
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Think Rolex, where scarcity is crafted meticulously, making their timepieces more than just watches – they are status symbols.
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@ROLEX , like other luxury brands, controls their output carefully.
They limit the number of watches produced yearly, ensuring that demand perpetually outstrips supply.
This scarcity imbues their timepieces with an aura of exclusivity.
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They limit the number of watches produced yearly, ensuring that demand perpetually outstrips supply.
This scarcity imbues their timepieces with an aura of exclusivity.
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However, scarcity and exclusivity come with challenges.
A major issue in the luxury goods market is counterfeiting. How can a buyer be sure their Rolex isn't a cleverly disguised fake?
Especially in this new digital age, where we do more of our luxury shopping online.
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A major issue in the luxury goods market is counterfeiting. How can a buyer be sure their Rolex isn't a cleverly disguised fake?
Especially in this new digital age, where we do more of our luxury shopping online.
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Enter blockchain technology.
Known for powering cryptocurrencies, blockchain's core attributes of immutability and transparency make it a promising solution for proving authenticity in the luxury goods market.
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Known for powering cryptocurrencies, blockchain's core attributes of immutability and transparency make it a promising solution for proving authenticity in the luxury goods market.
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Each transaction on a blockchain is recorded on a public ledger, forming a chain of information that is nearly impossible to alter.
This chain can be used to verify the authenticity and ownership history of an item – perfect for luxury goods.
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This chain can be used to verify the authenticity and ownership history of an item – perfect for luxury goods.
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For a Rolex watch, a blockchain could hold data about its creation, including where and when it was made, the craftspeople involved, and its unique identifiers.
Each subsequent sale or transfer would be added to this ledger.
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Each subsequent sale or transfer would be added to this ledger.
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This gives each timepiece a transparent and tamper-proof history, a digital certificate of authenticity if you will.
Buyers can verify the provenance and history of their potential purchase, ensuring it's a genuine Rolex and not counterfeit.
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Buyers can verify the provenance and history of their potential purchase, ensuring it's a genuine Rolex and not counterfeit.
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This not only provides peace of mind for buyers, but it also enhances the overall value proposition of luxury goods.
Authenticity is guaranteed, scarcity is verifiable, and the narrative of each individual piece can be explored and appreciated.
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Authenticity is guaranteed, scarcity is verifiable, and the narrative of each individual piece can be explored and appreciated.
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Narrative is a incredibly important unlock, the NFT space provides for these brands.
We see this IRL - sales in the multi-million dollar range for number plates with historical and symbolic meaning.
Image below of the $15 million dollar P7 License plate sale - Dubai.
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We see this IRL - sales in the multi-million dollar range for number plates with historical and symbolic meaning.
Image below of the $15 million dollar P7 License plate sale - Dubai.
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As with everything in the digital age, these narratives that take years to play out IRL, are brought into the digital space almost instantaneously.
The top bid to obtain the 1st @yugalabs Bitcoin ordinals piece dwarfed the other bids, don't get me started on ENS 😅
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The top bid to obtain the 1st @yugalabs Bitcoin ordinals piece dwarfed the other bids, don't get me started on ENS 😅
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Luxury brands themselves stand to benefit significantly from embracing blockchain technology.
Counterfeiting damages brand reputation and dilutes exclusivity. Blockchain can help safeguard these vital brand attributes.
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Counterfeiting damages brand reputation and dilutes exclusivity. Blockchain can help safeguard these vital brand attributes.
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By adopting blockchain, brands like Rolex can ensure their watches remain exclusive, scarce, and authentic.
This not only protects their current market but also enhances their appeal to the growing demographic of tech-savvy luxury consumers.
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This not only protects their current market but also enhances their appeal to the growing demographic of tech-savvy luxury consumers.
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Don't believe me?
Check out what happens when some of the best tech innovators in the space @OnChainMonkey partner with ultra luxury brands in the form of @bugattigrp & @AspreyStudio
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Check out what happens when some of the best tech innovators in the space @OnChainMonkey partner with ultra luxury brands in the form of @bugattigrp & @AspreyStudio
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This is not the first just the most recent success for Luxury + NFT Brand partnerships:
@gucci & their growing partnership with @yugalabs.
@cryptopunksnfts & @TiffanyAndCo success.
The world of luxury goods, the future seems to be written on the blockchain.
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@gucci & their growing partnership with @yugalabs.
@cryptopunksnfts & @TiffanyAndCo success.
The world of luxury goods, the future seems to be written on the blockchain.
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Thanks for reading! please like & share if you enjoyed the thread 🧵🙏
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