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An eclectic display at the 2nd Metaverse Fashion Week

The second edition of Metaverse Fashion Week came with a few technical hiccups — and featured a line-up of big brands, from Dundas to Adidas and HBO.

Inspired by success in 2022 and an impressive list of designers who attended that year’s Metaverse Fashion Week, Decentraland held another event this year from March 28–31. The week’s theme, “Future Heritage,” aimed to connect the next generation of creators with traditional fashion designers.

It’s the second time digital fashion’s core members — including Zero10, DressX and The Fabricant — have participated in MVFW, though the total number of brands declined. There were two shows worth noting: Dundas, which distinguished itself with beautiful avatars last year, and Adidas, which joined this year as a first-time participant. Decentraland and HBO also participated.

Real experience

Attendees this year immediately faced a problem: Neither an iPhone nor an iPad Pro could be used to enter Decentraland. That is, we lost our mobility in the real world. I had to cancel a couple of meetings and stay home.

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Moreover, the event’s Mac app didn’t work. So, you had to play the browser version of the game, which didn’t work properly, and you needed to clear your browser cache.

On the first day, there was such an influx of users that it was impossible to even visit the locations, and many users didn’t even see the Dundas show.

Metaverse fashion week or meta market?

In addition to the show on the first day, there was a meditation with Alo Yoga, which had planned activities for each day: yoga, breathing techniques and Reiki practices. It was as if you should have gotten off the computer and done the practice the coach dictated. This was the least obvious collaboration for Metaverse Fashion Week.

Shopping life

The most interesting thing happens in digital boutiques and during fashion weeks in general: Players most want to collect free clothing, which they do 24/7.

The Luxury District featured the big brands, including Dolce & Gabbana, which held a talent contest in which Katya Garnet, Nataliya Grimberg, David Lopez and Dundas prevailed. The biggest boutiques were Tommy Hilfiger and DKNY, which are not luxury brands in the real world.

Dolce & Gabbana store at Metaverse Fashion Week. Source: ScreenMVFW.

It’s worth noting that DKNY had a huge four-story boutique with a pizzeria, bar and disco on the roof. It all looked large-scale, but it was very sad. They could at least have put an NPC in it — or even an employee with whom you could interact and buy goods.

Then we went to the failed case of Vivienne Westwood. In the Dear Vivienne location, we could go on a quest in a boutique decorated in branded tartan and a ladder with the letters “SEX.” The miracles ended there.

Adidas had a good boutique and a show as well. In the boutique, you could get a free jacket, which slowed down your entire game if you wore it — but it looked good.

The best location was Coach, which had a presentation of a tabby bag.

You entered through the pink city and climbed into the bag itself, where each day, you could go on new quests, win a boa and try on a bag in Zero10, a partner location.

At the end of the four days of MVFW, participants could visit two DKNY and poker night parties.

MVFW's final DKNY party — which the author attended alone. Source: Screenshot of MVFW.

Last MVFW, you could attend a Grimes concert, which looked decent and generated a lot of buzz.

It’s worth noting that after the previous MVFW, luxury brands decided not to participate in the metaverse. The focus shifted to the middle, which makes sense — they should understand which audience is playing Decentraland.

Who are they?

After four days in the metaverse, there were many questions: Who are these people who have so much time to load a browser, tolerate bugs and play weird games? Why are they so eager to join the metaverse? Do they want to buy something from Dolce & Gabbana? Or do they want to walk on the red carpet in a Dundas evening dress?

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In those four days, it became clear that most players’ goal was to get free clothes.

For now, it does not make sense for luxury brands to participate in these events. Their buyers are busy working in order to have the money they need to buy luxury products — and playing in Decentraland takes a lot of time and effort, leaving little time for work.

Inna Kombarova is the founder of the popular fashion Telegram channel @Mamkina. In 2019, she quit her job as the head of the industrial sales department at a prominent climate company and started working full-time in fashion media.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Augmented reality helps brands tell their story: MVFW 2023

During Metaverse Fashion Week 2023, the augmented reality platform — Over — projected a larger-than-life virtual catwalk over one of Milan’s most prominent locations.

The second annual Metaverse Fashion Week (MVFW) hit the virtual runway this year from March 28–31 via a collaboration between Spatial — a 3D social network platform — and Over, a blockchain-based augmented reality (AR) platform.

This year’s event saw over 60 brands, including legacy names such as Dolce & Gabbana, Tommy Hilfiger, DKNY and Gucci. Like last year, the event combined digital runways, panels with industry thought leaders and designers, and afterparties.

However, one of the main attractions occurred on the event’s last day, March 31, when a hybrid AR runway from Over was cast across the Piazza of Duomo di Milano — one of Milan’s most iconic locations.

Guests watching an AR fashion show on the Piazza of Duomo di Milano. Source: Over

Diego Di Tommaso, the co-founder and chief operating officer of Over, told Cointelegraph that core components of the fashion industry include projecting identities and creating narratives around brands.

“AR, specifically, is regarded as the new and exciting medium that allows brands to tell their stories and showcase their creations more compellingly and intuitively.”

Tommaso said the “impression, understanding and emotion” that consumers get from an item presented in AR vs. 2D is incomparable. According to the co-founder, AR catwalks, augmented shop windows and AR virtual try-on are only scratching the surface of what’s to come for the fashion industry. 

“As soon as consumer-ready smart glasses hit the market, there will be no brand without an AR strategy.”

This AR runway featured large-scale virtual models who paraded across the plaza in cutting-edge digital designs from the participating brands, including Balmain x Space Runners and Pet Liger, part of the Gucci “VAULT” project. Even some notable Bored Ape Yacht Club personalities walked the runway. 

Over shared with Cointelegraph that guests called the event a “new level of experience,” bringing digital fashion to a “whole new stage.”

Related: The metaverse is becoming a platform to unite fashion communities

Dave Carr, the head of creative strategy and partnership at Over, told Cointelegraph that AR differs from the metaverse because viewers don’t have to sit in front of a computer or strap on an “unwieldy VR headset” to have the experience. 

“With AR, the metaverse comes to you. You can be present among real people while enhancing your surroundings with amazing immersive digital content.”

Carr hinted that future developments from Over would even allow engagement with the AR models through speaking and deciding on outfits, indicating “huge implications for brands and retailers.”

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Redeeming physical NFTs: Easier said than done?

A number of challenges must be overcome in order for “phygital” NFT projects to gain traction.

Despite the crypto winter, nonfungible tokens (NFTs) continue to draw interest. This has become apparent as many brands and retailers have started to offer digital NFTs attached to physical products. Known as “phygitals,” these offerings allow real-world products to be tied to digital NFTs. 

For example, RTFKT — a digital fashion and collectible company — recently launched a project called Cryptokicks iRL. According to sources, RTFKT is creating digitally-designed sneakers backed by a physical product.

RTFKT’s official Twitter account recently tweeted that Lace Engine NFT holders will be able to reserve a pair of Cryptokicks iRL, which can then be redeemed for its physical version starting May 1, 2023.

Redeeming physical NFTs can be challenging

While the concept behind phygitals may be appealing to brands and consumers, redeeming physical NFTs has proven to be challenging. For instance, in some cases, NFT holders may only need to provide a wallet address to redeem a digital NFT linked with a physical item. Yet, this makes it difficult to collect personal information, such as shipping details, from NFT holders.

Jacob Ner-David, CEO at wine marketplace Vinsent, told Cointelegraph that he encountered such a problem after launching two NFT drops tied to physical bottles of wine. Ner-David explained that at the end of 2021, Vinsent launched both a public and private NFT drop. This allowed consumers to purchase tokenized bottles of fine wine that could be redeemed for physical bottles one year later.

Image from Vinsent's collaboration with a company called LAAVA. Source: Vinsent

Although the project was successful, Ner-David shared that only a small percentage of NFT holders have come forward to claim their physical bottles of wine. According to Ner-David, this is due to challenges with the redemption process and poor communication to NFT holders that their wine is ready to be claimed. 

“The only way we can communicate with our NFT holders is through Discord, Twitter and Telegram. We need to collect their shipping information,” he said.

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Ner-David elaborated that 15% of NFT holders associated with the private drop have claimed their physical bottles of wine, while close to 30% involved with the public drop have redeemed their bottles.

“We have learned that there must be a redemption mechanism in place before launching a physical NFT drop,” he said. Ner-David added that storing the unclaimed wine bottles has become problematic, noting that these continue to be held at the Israel-based Jezreel Valley Winery.

Due to issues such as these, companies launching physical NFT drops have started taking different approaches. For example, Jeff Malki, strategic adviser for NFT firm NXTG3NZ, told Cointelegraph that he helped facilitate the 7220 NXTG3NZ NFT digital sneaker drop rapper Lil Durk launched in March 2022.

Malki explained that physical sneakers tied to these digital NFTs would be available in Q1 of 2023. He added that this particular drop is targeted toward non-Web3 natives, noting that users have the option to submit their physical shipping addresses upon purchase.

“We expect 80% of our users to be non-crypto holders. If they wish to submit their data, they can. It would be ideal for NFT owners to input their shipping data immediately upon purchase, so the items are shipped automatically,” he said.

“7220 NXTG3NZ” NFT digital sneaker drop. Source: nxtg3nz

In addition, Malki noted that NXTG3NZ might implement a first-come, first-served system. This would mean that a top-tier group of NFT holders could claim their physical sneakers but must choose their item and redeem it immediately. If this isn’t properly facilitated, another user could come forward to claim the physical item. Malki said:

“NFTs are cutting edge and we are all trying to innovate. There are no blueprints for this process. Brands and companies are interested in working on phygital projects, but there is still a lot of risk involved.”

Although this may be the case for some phygital projects, others claim to have found successful strategies. For example, Charlotte Shaw, chief marketing officer of BlockBar — an NFT project offering digital and physical wine founded in 2021 — told Cointelegraph that the firm offers NFT owners storage, insurance, a marketplace for resales and global shipping.

“Each BlockBar NFT corresponds to an actual physical bottle of wine or spirit, which bottle owners can resell, collect, gift or at any time ‘burn’ in exchange for the physical bottle,” she said.

Shaw elaborated that physical bottles are shipped from BlockBar’s facility in Singapore and can be redeemed via the BlockBar website. “When you redeem your bottle, you will be ‘burning’ the digital version in order to receive the physical version [one is exchanged for the other], which means one less digital NFT will exist. When you redeem, you will also be asked to enter your shipping address and you will need to be in full compliance of your jurisdiction,” she explained.

Image from the BlockBar collection. Source: BlockBar

According to Shaw, no challenges have been associated with redeeming physical BlockBar NFTs. However, collecting user information when NFTs are purchased creates less of a decentralized platform. Yet this may be the norm when it comes to ensuring NFT holders receive physical items. Brian Trunzo, metaverse lead at Polygon studios, told Cointelegraph that capturing user information is necessary for phygital projects. 

Fortunately, solutions are being developed to ensure greater privacy for NFT holders disclosing personal information. For example, Justin Banon, co-founder of Web3 commerce layer Boson Protocol, told Cointelegraph that “doxing” oneself is a big concern for Web3 natives.

To solve this dilemma, Banon explained that Boson Protocol had created a decentralized application that serves as an end-to-end encrypted messaging solution. “This ensures buyers only have to share private information with the seller and no other parties,” he said.

Ner-David also noted that Vinsent is currently working with the cross-chain NFT minting platform NFTrade to devise a solution for the two previous phygital drops. For example, regarding the storage of physical wine bottles, Ner-David mentioned that a period of time would be included within the cost of the NFT to cover storage fees. “We would then be able to communicate with the NFT holder that costs will accrue if the NFT remains unclaimed. This would all be incorporated into the NFT metadata.”

Physical NFTs are here to stay

Challenges aside, industry experts believe that phygitals will play a major role for brands and consumers moving forward. For instance, Banon believes physical NFTs will lead the way for Web3 loyalty programs. 

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While companies like Starbucks have already started to implement loyalty programs using NFTs, Banon mentioned that physical NFTs would soon become a part of these models:

“NFTs and Web3 technology enable brands to create ‘programmable loyalty commerce’ applications and programs. Where customers receive NFTs for performing target behaviors such as purchasing, engaging, and staying loyal, these loyalty NFTs can then unlock access to digital, physical and experiential assets.”

Although innovative, Akbar Hamid, co-founder of Web3 diversity project People of Crypto Lab, told Cointelegraph that there is a long road ahead in terms of solving the challenges and logistics involved with offering physical NFTs within fashion, retail and luxury consumer goods:

“There can be challenges with fulfilling utility for a much larger drop when you are talking about physical items attached to digital. This is also the case if you are considering tradeability and someone beyond the original purchaser redeeming the utility and physical good. Many brands don’t have the infrastructure or team to monitor this and that is key because we have to ensure the utility is delivered to the end user.”

Due to concerns such as these, Hamid explained that it might be best for companies doing NFT drops to work closely with brands and buyers to ensure that utility is redeemed efficiently.

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NFTs could help solve diamond certification fraud

Non-fungible tokens are being used to serve as digital GIA diamond certificates to ensure immutability, transparency and proof-of-ownership.

Diamonds may be a girl’s best friend, but unfortunately, the billion-dollar diamond industry is rife with scandal and fraud. There have been a number of cases where lab-grown diamonds have been graded as natural diamonds. An example of this was seen last year when the International Gemological Institute analyzed and graded a 6.18ct lab-grown diamond, which was previously claimed to be a natural diamond on its Gemological Institute of America (GIA) report. 

It was also reported in 2005 that the Gemological Institute of America — which is one of the most trusted sources for evaluating gemstone quality — was accepting bribes to upgrade its GIA reports. According to sources, a lawsuit was filed against GIA in 2005 due to payments being accepted to “upgrade” the quality of diamonds submitted for grading.

In addition, consumers are able to resubmit a diamond for examination at GIA for any reason. This is known as a follow-up service. As a result, diamonds can be associated with multiple grading reports. This can be problematic for consumers since they may not be receiving original diamond certificates upon purchase.

NFTs as a single source of truth

Unfortunately, diamond certificate fraud is becoming more common. Regions like India have even developed new frameworks to combat fraudulent activities, as seen in the Diamond Charter drafted last year. While innovative, industry experts have also started looking toward blockchain technology to help solve this growing problem.

Specifically speaking, nonfungible tokens (NFTs) may serve as a solution when it comes to preventing diamond certification fraud. Mike Moldawsky, founder and creator of Diamond Dawn, told Cointelegraph that diamond certification reports should be placed on a public blockchain network to ensure that documents can’t be manipulated. “Having a diamond certificate as an NFT on the Ethereum blockchain can ensure immutability, proof-of-ownership and visibility for both retailers and consumers,” he said.

In order to demonstrate this, Moldawsky explained that Diamond Dawn is a high-level NFT art project that will place 333 GIA-certified diamonds on the Ethereum blockchain as ERC-721 tokens. Privately invited participants will then be able to purchase these diamonds as NFTs. According to Moldawsky, participants will be able to purchase a limit of one diamond NFT, with weight varying between 0.4-0.8 carats, for the price of 4.44 Ether (ETH). Once an NFT is bought, a smart contract will automatically send the diamond’s GIA certificate to the Ethereum blockchain, serving as proof of ownership and verification.

Given the rise of NFTs tied to physical counterparts, Moldawsky further remarked that NFT holders will have the option to create a tangible art piece containing a GIA-certified diamond via the Diamond Dawn website.

“NFT holders will start with a digital rough diamond and evolve their NFT on the blockchain (on-chain) with a process that mimics precisely the in-real life natural diamond process. Ultimately, the collector will need to decide whether they want to keep their diamond digital or burn it and transform it into its physical form,” he elaborated.

An example of Diamond Dawn's physical art piece - a case which will come with a GIA certified diamond. Source: Diamond Dawn

According to Moldawsky, such a process is also meant to raise awareness around the notion that digital NFTs can become scarce over time and, therefore, more valuable. “As more collectors decide to claim the physical art piece and burn the NFT, this will reduce the total NFT supply. As a result, digital NFTs will become more rare,” Moldawsky explained. 

He added that the digital diamond artworks have all been created by artist David Ariew, who recently sold his first artwork at Sotheby’s Contemporary Art Evening for $224,000, alongside famous artists such as Banksy and Basquiat.

In either case, though, Moldawsky explained that Diamond Dawn’s diamond certificates will remain on the Ethereum blockchain. “If a user chooses to create a physical diamond art piece, they will receive the paper GIA certificate in addition to the certification on the blockchain network. The goal of the project is to demonstrate proof-of-ownership, transparency and immutability of diamond certificates,” he remarked. 

Olivia Landau, a GIA-certified gemologist and co-founder of The Clear Cut — a digitally native diamond engagement ring and fine jewelry company — told Cointelegraph that her firm is also using NFTs for diamond certification after launching an NFT platform on the Authentic blockchain network in January. She said:

“NFTs give couples purchasing an engagement ring the option to have all of the diamond’s certificates, insurances, images and even their proposal story stored safely on the blockchain for years to come, eliminating the worry of hanging onto hard-to-replace paper copies.”

Landau added that the purpose behind the NFTs offered by The Clear Cut is to digitize and authenticate a diamond’s GIA report and insurance documents. “The Clear Cut’s NFTs are not intended to be resold on secondary marketplaces,” she said.

An example of The Clear Cut's NFT portal. Source: The Clear Cut

According to Landau, clients who purchase a diamond ring from The Clear Cut will have the option to buy a corresponding NFT for an additional $500, which is to be paid in fiat rather than in crypto. She noted that existing clients will also have this option. 

“In the beta testing phase, over 90% of clients expressed initial interest in this new NFT function.​ Customers will receive a hard copy of their GIA certificate and a copy of it will be stored digitally, ensuring its value for life,” she said.

Will NFTs replace traditional diamond certificates?

NFTs as digital diamond certificates may be innovative, yet it remains questionable if this concept resonates with the mainstream.

For instance, Moldawsky pointed out that he believes more education around blockchain is needed in order for traditional organizations to understand the potential behind NFTs. “We need to ask GIA why they haven’t gone digital yet. Once that conversation is initiated, we can explain why blockchain technology is transformative,” he said.

While this may be, it’s notable that GIA is open to digital transformation. Stephen Morisseau, director of communications for GIA, told Cointelegraph that early next year, GIA will begin transitioning all of their gemological laboratory reports to digital forms. “This should be completed that by 2025,” he remarked. Morisseau added that all of GIA’s printed reports have several security features, noting that the information on any report can be verified using the secure online GIA Report Check service.

Adoption of NFTs within the diamond industry may also gain traction once mainstream retailers begin implementing the technology. For instance, De Beers is currently using the Tracr blockchain to trace the origins of its diamonds.

Jason McIntosh, chief product officer for Tracr, told Cointelegraph that NFTs are likely to be part of the platform’s solution in the future. “Diamonds on the Tracr platform are ‘NFT-ready’ in the sense that the Tracr diamond record can easily be incorporated within an NFT wrapper,” he said.

Given this level of innovation, Landau believes that in the future, all diamonds will be authenticated via a blockchain network. However, she pointed out the importance of ensuring that consumers don’t have to worry about the technical aspects behind NFTs:

“Customers don’t need to have any crypto or blockchain experience to gain access to our NFTs. Everything is handled for them effortlessly. I believe this will drive mainstream adoption.”

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How brands are using digital fashion in real life

From Gucci to Balenciaga, big fashion brands are making their way into the Metaverse.

While public interest in the Metaverse has not been completely lost, brands are trying to make the most of its popularity.

Many luxury brands have already jumped on the gamification bandwagon, selling branded skins and buying land in the Metaverse.

We have already visited Decentraland Fashion Week, played the Balenciaga game and regularly watched digital collections move from the mass market to luxury markets.

In addition, in Web3, there is a serious beef between the Hermès brand and artist Mason Rothchild, the man behind the nonfungible token (NFT) MetaBirkins furry bags. This event has attracted public attention to the fact that Hermès uses the skin of exotic animals while the digital fur is just an image. MetaBirkin raises an important issue: “What do luxury lovers pay for?”

Hermès claims that MetaBirkin uses the brand for its own benefit. Their answer, effectively, it that it’s none of their business — artists draw whatever they want. It’s virtual creative content, not a physical product, and not even a fake at all. In other words, a digital bag cannot be the subject of a lawsuit.

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In addition, if someone has a digital version of Birkin, they would probably like to buy a real bag by buying a token.

MetaBirkin does not undermine Hermès’ business in any way. Maybe it even attracts a new audience, making a product more hip and modern.

Anyway, this case is a wake-up call for luxury brands, indicating that it is necessary either to launch their digital fashion departments or cooperate with contemporary artists already online.

A Metabirkin

In general, NFT Birkin Bags are wildly popular: Sellers digitize their vintage bags and sell them as NFTs, producing a real one at the same time. Kanye West bought one for his girlfriend, Cheney Jones, for as much as $275,000. Is this a surprise? With NFTs, such a bag becomes modern art and is considered an investment both in real life and as an NFT.

After such situations, it is clear that the fashion world has moved into digital fashion. Who will miss the opportunity of the hype once again and earn extra money?

Well, first of all, brands began to produce their own NFTs, which gives access to a private club of fans. It’s like a favorite customer’s membership card but more expensive. You also can buy, resell and earn, but it’s not guaranteed.

Tiffany’s provides an example: TiffCoin. Of course, there are only 499 in circulation, and they debuted at a price of 30 Ether (ETH). If you buy one, you will have access to exclusive brand events. However, in fact, what you’re buying is “a cat in the bag.” You know neither the kind of events nor how long you will have access to them. But, perhaps, the owner could be a collector or an honorary client of Tiffany & Co.

The same thing was done by Dolce & Gabbana, but they went even further and launched as many as three versions of its boxes. Dolce offers three types of boxes: the Black one has an NFT with physical and digital drops, along with invitations to events in the Metaverse, the Gold box has invitations to live events and the Platinum one has more exclusive offers.

One by one, brands are starting to give the opportunity to buy real clothes in their boutiques with crypto. Crypto holders may now shop at Philipp Plein, Gucci, Off-white and Balenciaga.

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In order to pay fashionably, they need an appropriate wallet. Fendi will help. After all, they were the ones who presented their crypto wallets from the collaboration with Ledger at men’s Fashion Week. They look like little iconic Fendi Baguette bags but in Web3.

Now, brands are producing the same collections in digital and reality. For example, Zara didn’t miss the opportunity to raise brand awareness, so it dropped a digital version of its clothes. Despite their reasoning, who wants to go to the metaverse in Zara that has no difference from the real one. While it may be a rough start, there could be a better one in the future.

But, Dolce & Gabbana went further, adapting their real-time ideas to the Metaverse. First, it dressed up cats; secondly, the clothes sparkled and shimmered because in Metaverse, brands have to stand out, especially to customers who have enough money to buy a Dolce & Gabbana skin.

In general, digital fashion is still an instrument for the audience to capture, free from media traffic. Brands understand quite well, publish that you have something digital and that’s it — it will spread at the speed of light.

For example, Adidas has launched a personality-based AI-generated avatar creation platform: answer a few questions and choose sneakers. It’s the same advertising campaign: Everyone decides to make their avatars and post them on social networks; it’s the best marketing. Sure, each avatar looks the same, but that isn’t the point.

And, finally, all this digital fashion has moved to the catwalk.

At Metaverse Fashion Week, the Etro brand got at its Liquid Paisley collection. And, in real-time, it became a lot fresher than the brand’s current trends.

Now, there are more:

  • Silver metallic textures,
  • Catsuits,
  • Strappy mini skirts, much like selecting a piece of clothing when creating a character,
  • Big, chunky shoes,
  • Long black leather coats,
  • Wet-looking hairstyles: A style hard to reproduce in 3D due to texture,
  • “Cyber world” glasses that all self-respecting brands have already released — from Balenciaga to Coperni.

We are all loaded into the matrix. The fashion for cyber aesthetics has come to us again much after the great popularity of the Wachowski film, in addition to how natural it looks in modern life.

Now more than ever, the public should want to dress like the Matrix’s Trinity, wearing a Balenciaga coat, Gucci glasses and Metabirkin — a real one — complete with a hanging crypto cold wallet by Fendi x Ledger.

Inna Kombarova is the founder of the popular fashion Telegram channel, Mamkina. In 2019, she quit her job as the head of the industrial sales department at a prominent climate company and started working full-time in fashion media.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Web3 had a small, yet important, presence at Paris Fashion Week

A handful of designers showcased Web3 initiatives at Paris Fashion Week, demonstrating inclusion, sustainability and creativity.

Paris Fashion Week 2022 consisted of 64 shows and 42 presentations, many of which demonstrated the future of fashion. From the sprayed-on dress worn by supermodel Bella Hadid at the Coperni show to upcycled fresh looks consisting of recycled garments, Paris Fashion Week brilliantly highlighted trends for upcoming seasons. 

While the majority of Fashion Week attendees and designers celebrated physical elements — such as in-person fashion shows and tangible designs — a handful of creators incorporated Web3 features to demonstrate fashion’s enormous digital potential.

Web3 democratizes fashion

Shedding light on this, Victor Weinsanto, a French designer who launched his brand in 2020 after spending two years working with the famous Jean Paul Gaultier, told Cointelegraph that virtual worlds allow creators to design without having to use real fabrics and materials. “In a sense this ensures sustainability, even though a lot of energy and time is used to create such collections,” he said. 

Weinsanto revealed his first digital collection M3TALOVE immediately following his fashion show that took place in the Marais district of Paris on Sept. 26. Unlike traditional fashion week experiences, The M3TALOVE collection was showcased as 3D holograms within a series of glass cases housed in a dark room, equipped with bright lights and a DJ. Such a setting seemed appropriate, as the collection was a collaboration between Weinsanto and K-Pop girl band Lightsum.

The “M3TALOVE” collection from Weinsanto and BNV. Source: BNV

Richard Hobbs, founder and chief operating officer of Brand New Vision (BNV) — the Web3 platform behind M3TALOVE — told Cointelegraph that the idea for this collection was inspired by the possibilities of merging K-pop culture with fashion. 

“This was a collaborative experience with Victor presenting his concepts to each of the eight members of Lightsum, who then gave their comments and suggestions before BNV converted the sketches into digital outfits, along with individual customized avatars for the eight girls.”

Weinsanto added that the M3TALOVE collection was one of the best ways to use nonfungible tokens (NFTs) to showcase a collaboration between music, the Metaverse and fashion. “I wanted a collection that could be wearable, but still have details that would be impossible to incorporate in real life.” 

Going beyond realistic concepts is indeed one of the most important features offered by Web3 fashion. Hobbs remarked that M3TALOVE is an entirely digital collection, noting that this allows for more imaginative concepts, along with the sustainability.

“BNV’s business is digital fashion. If people can wear more virtual products and express themselves in that world while consuming less in the real world, that’s probably a good thing,” he said. Hobbs makes an important point, as it was previously reported that a typical New York Fashion Week emits up to 48,000 metric tons of carbon dioxide.

The French luxury fashion house Balmain also showcased its Web3 presence at Paris Fashion Week this year. Balmain introduced “Balmain Thread,” which is the brand’s Web3 hub powered by the XRP Ledger that is designed to unite their community with NFT projects. Txampi Diz, chief marketing officer of Balmain, told Cointelegraph that Olivier Rousteing — who has been the house’s creative director since 2011 — along with the entire Balmain team, have become acutely aware of the need to democratize fashion. According to Diz, this led to the creation of the Balmain Thread. He said:

“We are stressing the need to open up fashion, democratizing a previously closed-off universe. We knew that we had to introduce the Balmain Thread during our annual Balmain Festival, which is a celebration that mixes our runway presentation for Paris Fashion Week with a one-of-a-kind live concert that is live streamed on Balmain.com.”

Diz explained that Balmain Festival attendees were presented with the opportunity to join the Balmain Thread community when they received their tickets. He added that those live-streaming the festival were provided with links to join on Balmain.com. “And all of those in the audience on the evening of the festival were invited to join by launching ‘The Moment,’ which is a mobile photo experience app powered by MintNFT that allows participants to transform their favorite Balmain Festival fashion moment into their own unique NFT.” 

While innovative, Diz pointed out that the ultimate goal behind Balmain Thread is to ensure new forms of communication with the brand’s followers while opening access to those who haven’t been involved with Paris Fashion Week before. He elaborated:

“Inclusion is a keyword in fashion, as we all know that the old vision of exclusivity and closed-off experiences is just not feasible for the new generation of fashion lovers. Web3 is one of the many interesting new tools that allow us to open our world to those who wish to enter.”

While such a concept is catching on with renowned fashion houses like Balmain, emerging brands are also incorporating Web3 experiences to provide greater accessibility for both consumers and creators. 

For example, the Paris-founded fashion company Faith Connexion highlighted their Web3 platform, Faith Tribe, during fashion week this year. Maria Buccellati, co-owner and co-founder of Faith Connexion, told Cointelegraph that Faith Tribe is an incubator under Faith Connexion that allows independent creators to design and customize digital and physical fashion assets that can then be minted into NFTs. Buccellati said:

“We had a showroom at Paris Fashion Week this year to display some of the collaborative names and labels that are part of Faith Tribe. This makes Faith Connexion an inclusive brand, which is different from the major players like LVMH. We are leveraging Web3 to give power back to creators.” 

To put this in perspective, Buccellati shared that Faith Connexion announced during Paris Fashion Week that Gavin Magnus, a fifteen-year-old pop star and social media influencer, will be partnering with the brand to create an NFT line. 

Wahid Chammas, co-owner of Faith Connexion, further told Cointelegraph that Faith Connexion is already working with hundreds of new designers to provide them with tools such as virtual studios, IP registrations and NFT minting capabilities to expand their presence. 

Unlike BNV, which focuses strictly on digital collections, Chammas explained that Faith Connexion emphasizes physical production associated with digital twins. “We believe that any designer will be able to create and curate for us under their own brand, while we enable NFT tags to ensure consumers have digital ownership,” he said. The idea behind NFTs for physical designs will also allow creators under Faith Connexion to have wearables in Metaverse environments that can be used to dress avatars.

Web3 will evolve within the fashion industry

Although Web3 has massive potential to expand the fashion industry’s reach, the fact remains that very few brands and designers are incorporating these elements. While this was apparent at Paris Fashion Week this year, innovative designers like Weinsanto are hopeful that Web3 concepts will catch on. 

Image from Weinsanto's opening night showcasing the  M3TALOVE collection. Source: @alekkatar #tendaysinparis

“I think that the Metaverse is not yet well known by designers, but soon everyone will want to create collections in the Metaverse, as it is stimulating and exciting, but also easily accessible,” he remarked.

Diz added that it’s inevitable that more and more fashion houses will follow Balmain into the Web3 space since it democratizes the industry. However, he pointed out that education remains a key challenge, which is why Balmain Thread aimed to make the process of joining its community as easy as possible. He said:

“We made it clear that those joining the Balmain Thread community would never need to master any of the complex workings of crypto or blockchains in order to engage creatively with the house – all memberships were minted on the XRP Ledger, while MintNFT guaranteed security by proving authenticity via their video verification technology.”

Although Balmain decided to take this route, some industry experts believe that educating designers and creators at major events like Paris Fashion Week is critical. For example, Enara Nazarova, vice president of Metaverse at Hype — an agency that helps brands get started in the Metaverse — told Cointelegraph that Hype hosted its second digital fashion soirée at Paris Fashion Week to educate attendees on Web3: 

“Inspired by the success of our New York Fashion Week soirée, we convened at the top of Centre Pompidou, where we welcomed the leading builders in the Web3 space to discuss what comes next for the fashion industry.”

While Nazarova believes that Web3 has advanced within the crypto space, she noted that education, along with onboarding users is key for driving adoption. Although this is happening slowly, she is confident that Web3 will have a bigger presence at flagship fashion events in the future.

“Web2 brands can’t ignore digital fashion’s power to connect with millions of consumers through virtual products. Yet transitioning from Web2 to Web3 is not a one-size-fits-all solution, so companies have to embrace experimentation. I think the opportunities for fashion to leverage Web3 infrastructure are just starting to emerge.”

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How NFTs and the Metaverse can keep fashion luxurious

Luxury in the metaverse isn’t just exclusive to owning the biggest land plot or the best NFT avatar — it’s more than that.

It’s no secret that the fashion industry has started to explore the cryptoverse, with brands like Dolce & Gabbana, Gucci, Philipp Plein and Tiffany & Co. taking their own path down the metaverse runway. 

Decentraland’s Metaverse Fashion Week hinted at a new wave of fashion, while Philipp Plein brought the metaverse and nonfungible tokens (NFTs) right into his London shop. The innovative technology mixed with the ever-changing fashion world was an inevitable pair, but there is always room for more.

Even during its inception, the promise of the metaverse has convinced people to pay millions for land in the virtual worlds — so, why not fashion? The fashion industry is always looking for new ways to innovate and create new traditions.

While the metaverse removes the tangible aspect that captivates many in the fashion industry, it is a new way to experience wearing and using beautiful pieces digitally on a personal avatar. Lokesh Rao, CEO of Trace Network Labs, previously told Cointelegraph that “a digital avatar can wear any garment without any constraints of type, design, fabric and use.”

As many know, however, the fashion industry remains one of the most exclusive industries in the world. With Chanel’s bag quota or purchase criteria and the long waiting list to get a Hermès Birkin or Kelly, a lot of the influence in the fashion industry comes from exclusivity, price, outfits and, in many cases, who one knows.

And as many fashion enthusiasts understand, there is nothing like opening the box of a long-coveted piece and holding, wearing and loving it for the first time. The idea of luxury is a melange of both exclusivity and passion. Why should fashion in the metaverse be any different?

Keep and grow traditions 

While prominent brands value their traditions, they should also evolve as time goes on. However, appealing to a new user base while keeping the existing ones entertained is not easy. 

In a fight to keep customers and enthusiasts loyal to the brand, Indrė Viltrakytė, a fashion entrepreneur and the founder of Web3 fashion venture The Rebels, suggested they “co-create digital wearables with members of their community and sharing commercial rights/profits or royalties with them.”

In this case, Viltrakytė told Cointelegraph that digital collectibles could help showcase fashion enthusiasts’ interest in a brand. These would not only be available to influencers, or the lucky ones who are given PR packages for their large following and interest in a brand, but could be for everyone.

For example, Maison Margiela could offer a set amount of digital wearables when buying a pair of the Bianchetto Tabi Boot. The boots can be worn in the Metaverse and in real life for those diehard fans who do not necessarily have a following behind them.

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Tiffany & Co. has already done something similar with their CryptoPunk NFT collection NFTiff, a collection of CryptoPunk-inspired NFTs that are “exclusive to CryptoPunk holders.”

For 30 Ether (ETH), CryptoPunk holders can secure a physical version of their favorite and probably most expensive NFT to be worn as a status symbol. This is something that would not be exclusive to those with influence and can carry online into the new era of Tiffany’s little blue box, an iconic emblem of the brand.

Digital fashion items are nonfungible

NFTs, according to the Ethereum Foundation, are “tokens that we can use to represent ownership of unique items.” They are not able to be modified or deleted once minted, and “digital assets never deteriorate,” said Viltrakytė. 

Unfortunately, many assets in the fashion industry, such as the aforementioned Birkin, which has “outperformed the S&P 500 over 35 years,” according to Finty, can be stolen, destroyed or worn down over time without proper care. This is where digital assets rise above because, “like some ultra-exclusive, non-tangible experiences currently available, not everything expensive needs to be ‘touched’ to have value,” Viltrakytė noted.

Plus, outside of collectors and caretakers, it is almost impossible for an enthusiast to get their hands on an archive piece, especially if preservation could be a problem. Sometimes, brands will showcase their archive in cities like Paris or Milan for a limited time, but in many cases, it is a private affair owned by private people. However, one way that brands can utilize this exclusivity of a non-deteriorating asset is through NFTs and blockchain-based NFT museums.

Viltrakytė said, “If an NFT gives you direct access to Chanel archives or the creative director of Hermès, it signifies the special status you can have or even upgrade with time.” The NFT will never expire, and there will always be a way to create a luxurious and exclusive experience.

Another way, she suggested, is to create something like a fashion bond, where after some point, the NFT can be exchanged for a luxury item. “For example, if you are a Hermès client and would like to purchase a deed for your daughter to redeem it for a one-of-a-kind bag on her 18th birthday, you can do it seamlessly as an NFT,” she said, adding:

“Paper certificates burn; servers crash and lose data; but blockchain does not lie, and a nonfungible token like that would be 100x more liquid, verifiable and longer-lasting than any traditional document.”

Embrace e-commerce and the technology

As exciting as it is to go to the shop and try on, feel, walk around and experience the shop and its clothes, e-commerce is already on its way to becoming the main way to shop. The metaverse can help make it as luxurious and modern as traveling to Paris to buy a beloved Kelly. A new and creative approach is necessary because, as Viltrakytė said, “now, post-covid, 99.99% of brands are selling online, including Hermès.” Brands need to embrace what technology can do for their image and customers.

Viltrakytė believes that the industry is in the experimental phase of Web3 and virtual reality to see how they really affect the fashion industry, as “we don’t have solutions capable of making a digital garment ‘fit.’ When we have a ‘good enough’ depth sensors in our smartphones’ front camera and AR technology that can ‘fit’ any item perfectly on anyone, it will be the true start of the digital wearables era.”

According to Vogue Business, a Los Angeles modeling agency, Photogenics, has already experimented with this type of technology by creating “avatars via 3D scans of models’ faces, while their bodies were rendered from scratch.” The models and their avatars, personalized to the model’s preference of reality or creativity, are available for use in the metaverse as virtual models.

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Digital wearables can also shape who we are online. If one decides to move into the metaverse for various reasons, an identity there is as important as it is in real life. In fashion, people use details to express themselves, adding their own embroidery to pieces and customizing it to represent their personality. This concept will be just as important online as it is offline, as Viltrakytė suggested:

“The virtual presence can be an extension of one’s physical self and personality, or it can be something completely different from who a person is in real life. I think we’ll be seeing a mixture of those two concepts.” 

The simple fact is that the technology is not there yet. But as the fashion industry has proven time and time again, “our creativity shows how we can leverage all of this potential in the fashion industry.” 

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Web3 native fashion brands hit the runway in real life at NY Fall Fashion Week

While major fashion brands are going all in on the metaverse and NFTs, brands native to the Web3 space are heading back to physical reality for visibility.

Web3 fashion is subverting the narrative at New York Fashion Week (NYFW) this fall. Fashion brands native to the Web3 space will be premiering in real life (IRL) at a two-day show put on by Nolcha Shows.

Nolcha Shows has been actively curating events for 14 seasons. Still, this year there will be a Web3 edition featuring Web3 native brands, along with a panel on Web3's impact on the fashion industry's future.

In the last few years, fashion industry giants have been jumping into the digital universe at lightning speed. Gucci started to accept crypto in stores earlier this year, alongside its metaverse and NFT involvement with Roblox. Other major brands such as Balenciaga, Hermes and Phillip Plein have also announced their own plans for Web3 integration.

While these brands have collectively made millions from their exploration of decentralized technology, brands native to the Web3 space are turning back to IRL events for visibility.

Cointelegraph spoke with Arthur Mandel, the co-founder of Nolcha Shows, to understand more about why Web3 native brands are heading back to physical reality.

The fashion brand ChainGuardians is one of the Web3 native brands which is taking to the NYFW runway. It’s a brand that leans heavily on the trending term “phygital” which describes Web3 assets which combine aspects of physical and digital reality.

For example, nonfungible tokens (NFTs) wearables are those which can be utilized in the metaverse but also have a physical twin. Mandel says phygital products will lead as one of the most compelling Web3 integrations into the fashion industry.

“Phygital products that will blur realities and enable people to form numerous personal identities in both worlds - virtual and IRL.”

He also stressed that such products can be projected to also help brands cut costs on physical products and retail services.

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The fashion industry held its first-ever metaverse fashion week in Decentraland on March 23-27 of this year. However, Mandel says for brands native to these digital spaces participating IRL events helps forward the Web3 principles of accessibility and community:

“The reason web3 native brands opt for IRL events is to lower the threshold adaptation. Right now, the entry point and access to bigger crowds in a meaningful way is at in-person events.”

According to the fashion industry veteran it’s important to remember that while Web3 provides another dimension for in person events, it’s not a full replacement.

“Phygital is cyclical and reciprocal. It’s about creating IRL products and experiences that will blur the lines between real life and virtual reality."

There is still a balance to be struck between those inside and out of Web3.

Right now Mandel says “tech jargon that people don’t understand and actually fear so prefer to ignore.” He believes that the flow of legacy brands entering the space and Web3 native brands stepping out into physical reality will help dismantle these barriers.

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Iconic brands including Nike, Gucci have made $260M off NFT sales

Nonfungible tokens give major brands new ways of interacting with their consumers spanning art, fashion and gaming.

The hype surrounding nonfungible tokens (NFTs) has allowed some of the world’s most iconic brands to rake in hundreds of millions of dollars in additional revenue, underscoring the mass consumer appeal of digital collectibles. 

Leading brands including Nike, Gucci, Dolce & Gabbana, Adidas and Tiffany have amassed a combined $260 million worth of sales from NFTs, according to data from Dune Analytics that was first reported by NFTGators. Nike’s NFT drops have amassed $185.3 million in revenue, with volumes in secondary markets approaching $1.3 billion.

Dolce & Gabbana has generated $25.6 million worth of NFT revenue. Tiffany, which only recently launched its NFTiff token allowing CryptoPunk holders to mint customized pendants, has amassed $12.6 million in NFT-related sales. Total NFT revenue for Gucci and Adidas was $11.6 million and $10.9 million, respectively.

NFTs burst onto the mainstream in 2021, with collections such as the Bored Ape Yacht Club and CryptoPunks generating billions in lifetime sales. The hype surrounding digital collectibles eventually garnered the attention of major brands, which began experimenting with the technology to better connect with their customers. Although the NFT craze has died off in recent months, the impact of the new technology is expected to leave a lasting mark. Companies like Nike and Addidas plan to take their NFT ambitions into the Metaverse — moves designed to extend the ubiquity of their brands into the virtual worlds.

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While estimates vary, investors and technologists believe the NFT market has a very bright future. According to a recent survey by market aggregator CoinGecko, respondents believe the NFT market could be worth more than $800 billion over the next two years. More conventional research put the value of the global NFT market at around $230 billion by the end of the decade.

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