The NFT fashion gold rush earlier this year yielded some mind-boggling payouts for early adopters: virtual fashion brand Rtfkt sold a digital jacket for over $125,000, and of course, there was the famous $69 million Beeple digital art sale.
Now, the smoke is beginning to clear on the initial hype cycle as NFT price tags level out, and fashion brands are having a harder time making a big splash on existing NFT exchanges. Any brand or person can “mint” an NFT, which has led to a flood of NFTs for sale, and often brands lack familiarity with the crypto audience that form the core base of NFT buyers, experts say. And NFT sellers often don’t understand just how small the NFT buyer base is: blockchain analytics company Covalent found that fewer than 2,000 buyers accounted for 80 per cent of total purchase volume on Rarible, the second-largest NFT exchange. Even widely known celebrities are struggling to sell NFTs: only one of supermodel Kate Moss’s NFTs has sold, while another remains unbid on.
