Everything we loved about NFTs, web3 and Metaverses in 2022
2023 may be the year we finally stop hearing about NFTs.
No, not because all the brands, artists and other creators in web3 have given up, but because the industry has built enough case studies to stop needing to explain all this goofiness. In fact, 2022 was the year we saw people buy into NFTs without them being called NFTs, like when Starbucks announced its plan to embed digital tokens into its digital rewards program or Ticketmaster wrapped NFTs into event purchases.
Remember in 2008 how everyone was afraid of “the cloud”, fearing what would happen to our privacy and data? Now it’s an afterthought for anyone using 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 connecting digital assets to physical objects, which was pretty accurate. For 2023, we are betting big that terms like digital access will replace terms like “NFT”. After all, 2022 saw brands as diverse as Nike, adidas, Tiffany, Gucci, AMBUSH, Louis Vuitton, Pharrell, Sean Wotherspoon and KAWS drop web3 projects (to name a few).
These trends aren’t going away, which is why we’ve rounded up our favorite web3 developments from the past year to make sure you don’t skimp on the subject. Let’s dive in.
Luxury brands took the lead
In 2022, luxury brands led the charge on NFTs.
We saw Gucci release SuperGucci, a collaboration with SuperPlastic, in two popular installments. Each featured a SuperPlastic statue in an exclusive Gucci print, which came with a great IRL collectible.
Louis Vuitton worked with best-selling artist Beeple to embed 30 NFTs into the playable Louis The Game. Not only did the play-to-earn mechanics make the Beeple and Louis Vuitton NFTs available, but also created an early example of a branded game with web3 rewards.
But while SuperGucci and Louis The Game were fun, the biggest NFT story of 2022 was easily Tiffany’s CryptoPunk necklace. Starting at $50,000, the gem-studded necklaces were only available to the first 250 CryptoPunk holders to purchase one. Tiffany VP Alexandre Arnault’s move to sell exclusively to the 10,000 CryptoPunk owners was an “aha” moment for the industry: it’s the only group that can afford the jewelry (CryptoPunks currently sell for around $86,178).
Expect more advanced executions to reward these early adopters in 2023.
New technology opened the door to Web3’s usefulness
A common sentiment in web3 is that the industry is in the pre-iPhone era, meaning that the software and hardware have just now reached 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 a leader in crypto-related hardware, Ledger is excited to reveal its cultural collaborations in fashion and luxury for 2023.
Competition is increasing around chips that can be embedded in clothing to track the wearable’s provenance. For example, Jay-Z-backed Spatial Labs unveiled its LNQ marketplace with a proprietary chip that allows users to upload different files associated with each garment to the blockchain. Meanwhile, Azuki launched his Physical Backed Token (PBT) and partnered with AMBUSH to release an exclusive line of hoodies and jewelry (a big surprise for the web3 and fashion community). Finally, 9dcc used NFC chips for its Iteration-01 release, which founder gmoney then enabled token holders to take out a loan against their shirt (a first for a streetwear brand).
On the software side, Deep Objects spent years developing an artificial intelligence machine to design better sneakers before opening initial voting for shoes to be produced for NFT holders.
IRL activations demonstrated how NFTs can provide real fun
The real activations of NFTs have brought the most excitement to collectors.
Sure, Discord is nice to make virtual friends in, but the real magic of these digital tokens is their ability to earn real prizes and experiences.
Specifically, in 2022, many NFT projects offered their holders guest list spots at top-level events.
For example, Travis Scott DJ had a private party for InBetweeners co-founder Pavi, a big win stemming from an invitation sent by InBetweeners partner Justin Bieber. Other projects, such as Somehoodlum, gave token holders the ability to RSVP to premiere music festivals such as Bonnaroo, Governors Ball and Something In The Water.
Meanwhile, during New York Fashion Week, PUMA enabled collectors to forge their token for one of two physical shoes, a first of its kind initiative by a major sportswear company.
New ways to access fashion and collectibles
In 2022, NFTs brought about a change in how we access the fashion we love.
Sean Wotherspoon’s MNTGE offered curated vintage collections to its Mint Pass holders, making the already rare items extra exclusive. Meanwhile, MLLN offered digital passports to 3D print shoes with Zellerfeld, combining virtual and IRL shoes with the shoe industry’s latest innovation.
As ThankYouX pointed out, auction houses such as Christie’s and Sotheby’s have begun linking NFTs with physical works. Even KAWS jumped into the mix, teaming up with longtime partner AllRightsReserved to provide a “tap-to-own” chip in his PASSING THROUGH.
Nike proved (once again) that it is ahead of everyone
When Nike announced it would be adding RTFKT to its family of brands in 2021, the move turned fashion and business analysts on its head. After all, what can some virtual shoes really bring to the table for the world’s largest sportswear company?
It turns out the answer is $1.28 billion, half of which came from royalties. While it’s a far cry from Jordan Brand’s $4.7 billion, this is the first time Nike was able to pull in revenue from the resale market, opening the door for RTFKT to possibly surpass Jordan’s numbers 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 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 conducted a design competition. 2023 will see more events in . SWOOSH, introducing Nike’s IRL audience to the metaverse.
Ethereum Switched to Proof of Stake, Marginalizing NFT’s Environmental Impact
After years of development, Ethereum switched 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 Ethereum and ETH-based NFTs’ environmental impact by 98 percent, making the act of trading NFTs less environmentally damaging than streaming Netflix.
Less speculation, more activation
Perhaps the biggest trend we saw this year was how NFTs grew from being a purely speculative investment to a tool for activating brand and artist superfans. Personally, my inbox has more notable brands and artists dealing with projects of real value and fewer people trying to shove 10,000 randomly generated cartoon characters in my face.
Getting through this crypto winter will be less about speculators and more about activating the crypto-curious. For example, Dour Darcel’s gamifying Milan Fashion Week and partnering with colette may not lead to multi-million dollar sales, but rather engage 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 area, and lay the foundations for a strong 2023.
