Cryptocurrency in the Luxury Industry
Every year, luxury brands lose around US$30 billion worth of sales to counterfeits online, and many expressed that they bought them without knowing it. Blockchain technology enables brands to tokenize non-fungible assets, also known as NFTs, allowing each asset to be held, purchased, exchanged, and traded with ease online. Through the use of blockchain, users can track and trace the product from raw material to production to sales, assuring the customer of its history and authenticity.
Luxury brand conglomerate LVMH, owner of the iconic Louis Vuitton label, is among the first few to launch a blockchain to prove high-priced goods’ authenticity. Other brands which are doing so include Gucci and Rimowa.
Global luxury brands have set foot in the crypto space. Below are some of them to pay attention to,
Cryptocurrency is going to be around for a lot longer than most think. As major brands in the other industries are starting to accept cryptocurrency, the influence will impact the luxury industry to shift toward crypto adoption.