FTX, the centralised cryptocurrency exchange collapsed in November 2022 and has left investors reeling. Many fashion brands have spent time experimenting with use case development in their online systems. Digital Agency Techtee has worked with Fashion houses such as Gucci, Givenchy, La Perla and Nike. Founder Tobi Ajala, states that: “Although a part of the NFT collector community obtains assets to resell for profit, within luxury fashion and culture, that turnover rate is substantially less, partly due to the loyalty and the proximity to the fashion brands that purchasing these collectibles provides. It’s the art, it’s the fashion that’s going to help regain the momentum for NFTs.”
According to a report from Forbes, the crypto crash could have a significant impact on the luxury fashion market. Luxury fashion brands, such as Gucci and Louis Vuitton, often accept Bitcoin and other cryptocurrencies as payment for their high-end products. With the value of these cryptocurrencies plummeting, it's possible that some consumers who had been planning to use them to make a luxury fashion purchase may now be hesitant to do so.
However, not everyone is convinced that the crypto crash will have a major impact on the fashion industry. In an interview with CNBC, Elizabeth Spiers, the founding editor of fashion trade publication The Fashion Law, said, "I don't think the crypto crash will have a meaningful impact on the fashion industry. Fashion consumers are not the same people who are speculating in crypto, and fashion brands are not significantly exposed to cryptocurrency as a form of payment."
It's worth noting that the fashion industry has always been known for its volatility, and it's likely that any impact of the crypto crash will be just one factor among many that could affect the industry. As fashion journalist Dana Thomas pointed out in an interview with NPR, "Fashion is affected by all sorts of things, from politics to the weather to the stock market. And it's always been like that."
While it's possible that the crypto crash could have some impact on the luxury fashion market, it's too soon to say for sure how significant that impact will be. Only time will tell how the fashion industry will be affected by this latest development.
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