Gucci Prepares To Release NFT, More Luxury Brands To Follow: Report

The past few months have seen non-fungible tokens, or NFTs, take the world by storm – with releases from Grammy-winning musicians, digital artists, and even fast-food chains.

What Happened: Luxury brands may be the next to jump on the bandwagon, according to a recent report from Vogue Business.

According to Vogue, Gucci Grp. Nv GUC recently confirmed that it’s “only a matter of time” before they release an NFT of their own. The coveted luxury brand is not the only one considering an entry into the space, as multiple industry sources have reportedly confirmed that they are close to releasing their own NFTs.

“Luxury brands were behind on the e-commerce trend, so there’s now more of a willingness to experiment with new technologies like blockchain,” said Marjorie Hernandez, founder of Lukso Blockchain – a blockchain platform that works with fashion brands.

Why It Matters: The real utility behind some NFTs has been somewhat difficult to imagine for some users, and in the context of the fashion world, this may be even more challenging.

One possible use case could be a 3D wardrobe functionality, as imagined by Sydney-based Neuno. The startup is currently working with five luxury fashion houses to launch NFTs. “We want to be the universal 3D wardrobe that plugs into everything,” said CEO Natalie Johnson.

Cathy Hackl of the Futures Intelligence Group, on the other hand, believes that selling virtual dresses and assets will be a significant revenue stream for brands going forward. “As we move into a more immersive web, every fashion brand will need to have a virtual strategy,” she said.

What Else: Earlier today, some analysts noted that a “silent crash” may be underway for NFTs after data from NonFungible.com revealed that the average daily value declined 85% on Mar 25.

The illiquid nature of NFT marketplaces makes it difficult to predict future price movements.