Source: news.google.com
2023 could be the year we finally stop hearing about NFT.
No, not because all the brands, artists and other web3 creators have given up, but because the industry has created enough case studies to stop having to explain all this nonsense. In fact, 2022 was the year we saw people buy NFTs without being called NFTs, like when Starbucks announced its plan to incorporate digital tokens into its digital rewards program or Ticketmaster bundled NFTs into event purchases.
Remember back in 2008 how everyone was scared of ‘the cloud’, fearing what would happen to our privacy and data? Now it’s an afterthought for anyone who uses Netflix, Instagram or Steam as cloud computing is the industry standard. Will 2023 see the same for NFTs?
Last year, we predicted that NFT trends for 2022 would include easier onboarding, more virtual fashion, and tying digital assets to physical items, which was pretty accurate. By 2023, we’re betting big on terms like digital access replacing terms like “NFT.” After all, in 2022 brands as diverse as Nike, adidas, Tiffany, Gucci, AMBUSH, Louis Vuitton, Pharrell, Sean Wotherspoon, and KAWS launched web3 projects (to name a few).
These trends aren’t going away, which is why we compiled our favorite web3 builds from the past year to make sure you’re not getting sloppy on the subject. let’s dive in
Luxury brands took the lead
In 2022, luxury brands led the NFT charge.
We saw Gucci launch SuperGucci, a collaborative effort with SuperPlastic, in two popular installments. Each featured a SuperPlastic statue in an exclusive Gucci print, accompanying a large real-life collectible.
Louis Vuitton worked with best-selling artist Beeple to incorporate 30 NFTs into their playable louis the game. The play-to-win mechanic not only made Beeple and Louis Vuitton NFTs accessible, but also created an early example of a branded game with web3 rewards.
But, while SuperGucci and Louis The Game were fun, the biggest luxury NFT story of 2022 was easily Tiffany’s CryptoPunk chain. Starting at $50,000, the gem-encrusted necklaces were only available to the first 250 CryptoPunk holders to purchase one. Tiffany Vice President Alexandre Arnault’s move to sell exclusively to CryptoPunk’s 10,000 owners was a shocking moment for the industry: It’s the only group that can afford the jewelry (CryptoPunks currently sell for around $86,178).
Expect more high-end runs to reward these early adopters in 2023.
New technology opened the door to the usefulness of Web3
A common sentiment at web3 is that the industry is in the pre-iPhone era, which means that the software and hardware are reaching a point of mass adoption.
To help usher in the iPhone era, hardware wallet company Ledger brought in the godfather of the iPod, Tony Fadell, for its Ledger Stax. As the leader in crypto-related hardware, Ledger is excited to introduce its cultural collaborations in fashion and luxury for 2023.
Competition is heating up over chips that can be embedded in clothing to trace the provenance of wearable devices. For example, Jay-Z-backed Spatial Labs introduced its LNQ marketplace with a proprietary chip that allows users to upload different files associated with each garment onto the blockchain. Meanwhile, Azuki launched its Physically Backed Token (PBT) and partnered with AMBUSH to launch an exclusive line of hoodies and jewelry (a big surprise for both the web3 and fashion communities). Finally, 9dcc used NFC chips for its launch of Iteration-01, whose founder gmoney then allowed token holders to borrow against their jersey (a first for a streetwear brand).
On the software side, Deep Objects spent years developing an AI machine to design better sneakers before opening up initial voting on the sneakers to be produced for NFT holders.
IRL activations demonstrated how NFTs can bring real-world fun
The real life activations of NFTs have brought the most excitement to collectors.
Sure, Discord is nice for making virtual friends, but the real magic of these digital tokens is their ability to earn you real-world experiences and rewards.
Specifically, in 2022, many NFT projects offered their holders guest list spots at top-tier events.
For example, Travis Scott DJed a private party for InBetweeners co-founder Pavi, a major achievement that stemmed from an invitation sent by InBetweeners partner Justin Bieber. Other projects, like Somehoodlum, offered token holders the ability to RSVP to first-run music festivals like Bonnaroo, Governors Ball, and Something In The Water.
Meanwhile, during New York Fashion Week, PUMA allowed collectors to forge their token for one of two physical shoes, a one-of-a-kind initiative by a major sportswear company.
New ways to access fashion and collectibles
2022 saw NFTs bring a change to the way we access the fashion we love.
Sean Wotherspoon’s MNTGE offered select vintage collections to its Mint Pass holders, making already rare merchandise more exclusive. Meanwhile, MLLN offered digital passes for 3D-printed shoes with Zellerfeld, combining virtual and IRL shoes with the latest innovation from the shoe industry.
As ThankYouX pointed out, auction houses like Christie’s and Sotheby’s have started to combine NFTs with physical works. Even KAWS joined the mix, working with longtime partner AllRightsReserved to provide a ‘touch to own’ chip inside your WHAT GOES THROUGH.
Nike showed (once again) that it is ahead of everyone
When Nike announced that it would add RTFKT to its family of brands in 2021, the move caught the attention of fashion and business analysts. After all, what could virtual shoes bring to the world’s largest sportswear company?
Turns out the answer is $1.28 billion, half of which came from royalties. While that’s quite a ways from Jordan Brand’s $4.7 billion, this is the first time Nike was able to capture revenue from the resale market, opening the door for RTFKT to possibly surpass Jordan’s figures in the future. To cap off the year, RTFKT unveiled its first physical shoes with the Cryptokicks iRL program, paving the way for Nike to one day put the Jumpman on the blockchain.
Outside of RTFKT, Nike has also launched .SWOOSH, its own metaverse, where users can claim a domain (ie joe.swoosh) for the company’s digital offerings. The project then embarked on a multi-city tour to educate the masses about NFTs and held a design contest. 2023 will see more events in . SWOOSH, getting Nike’s IRL audience used to the metaverse.
Ethereum switched to proof-of-stake, marginalizing the environmental impact of NFTs
After years of development, Ethereum went from a proof-of-work blockchain, which validates transactions using complicated mathematical equations, to a proof-of-work blockchain, which validates transactions using a peer-to-peer network.
This transition reduced the environmental impact of Ethereum and ETH-based NFTs by 98%, making the act of trading NFTs less harmful to the environment than streaming Netflix.
Less speculation, more activation
Perhaps the biggest trend we saw this year was how NFTs went from being a mere speculative investment to a tool to activate superfans of brands and artists. Personally, my inbox has more notable brands and artists buying projects with real-world value and fewer people trying to put 10,000 randomly generated cartoon characters in my face.
Getting through this crypto winter will be less about speculators and more about activating the cryptocurious. For example, Dour Darcels gamifying Milan Fashion Week and collaborating with Colette might not generate multi-million sales, but rather attract fans who want an extra experience with the brands they love.
For the industry as a whole, these are positive signs that the right people are getting fresh faces to enter the web3 space, setting the stage for a strong 2023.
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