Luxury brands Gucci and Tiffany successfully launch NFT related projects despite
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Luxury brands Gucci and Tiffany successfully launch NFT-related projects despite market downturn

This week, luxury brands Gucci (owned by Kering SA) and Tiffany & Co. (LVMH) announced projects related to non-fungible tokens (NFTs). In the case of Gucci, the tokens are used to pay for its goods, while Tiffany uses NFT as a digital passport to create custom jewelry for cryptocurrency enthusiasts.

    Image source: Bloomberg

Image source: Bloomberg

Although the projects launch against the backdrop of a downturn in the NFT market, brands have described their initiatives as related “Future” call her “one more step” in the investigation of web3, a new generation of blockchain-based internet technologies.

In 2022, against the background of the collapse of the cryptocurrency market, the situation in the NFT market has significantly deteriorated compared to the previous year. However, industry representatives argue that many large consumer companies continue to view NFT and Web3 technologies as a promising way to engage with customers.

“Brands have the opportunity to create a new kind of relationship with their customers,” says Ian Rogers, former chief digital officer at LVMH and now chief account officer at Ledger, a cryptographic hardware company. “What you will see in the next few years are many experiments”he promises.

According to NFTPriceFloor, the reserve price of the digital art collection rose more than 9% to 74.69 Ethereum, or about $123,000, after Tiffany announced on July 31 that it would be offering NFTiff collector passes, which CryptoPunk NFT owners redeem for a custom tag be able.

And following Gucci’s tweet on Tuesday about the acceptance of ApeCoin as a payment method in some of its US boutiques, the token pared its decline by 4% and was trading almost flat in London as of 5:00 p.m., according to CoinGecko data. The Bored Ape Yacht Club NFT collection, created by Yuga Labs, the publisher of ApeCoin, also rose in price on Tuesday, up 5.2% to 84.19 Ethereum.

Gucci will be the first brand to accept ApeCoin as payment in US stores and plans to expand the initiative to the rest of its North American presence this summer, company spokesman Claudio Monteverde told Bloomberg via email.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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