Tiffany and Co. Is Selling NFTs for $50,000 Each
Tiffany & Co. is jumping into the NFT space with the launch of its own collection, called NFTiff. As should be no surprise for a luxury brand, these NFTs won't be cheap. There will be only 250 NFTiffs, and they'll each sell for $50,000 (30 ether) when they become available on Friday, Aug. 5.
It may be the most expensive public sale of any NFT in history. Many NFTs sell for exorbitant sums at auctions or on secondary marketplaces like OpenSea, but they're typically not confrontingly expensive at public sale. Most creators who launch collections price their NFTs under $160 (0.1 ether). Bored Ape Yacht Club, the most famous collection, launched at 0.08 ether, worth about $200 at the time.
Tiffany isn't targeting the typical crypto punter with its collection, however. It's exclusive to holders of CryptoPunks, famous as the first NFT collection created. CryptoPunks rarely go for less than 6 figures, so Tiffany is targeting the most affluent NFT collectors.
The NFTs the luxury brand is selling are really more accessories to the main product: Those who shell out $50,000 for an NFTiff will get a Tiffany pendant version of the CryptoPunk they own. (You can see an example below.) They'll also get a digital version of that pendant, which is the NFT. In basing the transactions on ether, the second biggest cryptocurrency, Tiffany is opening up potential sales to buyers who are richer in crypto than cash.
Tiffany's announcement caused a stir among NFT traders, with the 30 ether price being a point of controversy. It's a bold time to launch such a costly NFT collection, with ether, the cryptocurrency on which the NFT market is based, down 54% since the beginning of the year. With crypto down so much, NFT creators have shifted to lowering asking prices. Free mints, where creators give away NFTs for free in the hopes that they'll profit from secondary market royalties, have become particularly popular.
Tiffany is the latest fashion brand to dip their toes in Web3, the notion that blockchain technology will undergird the next generation of the internet. Adidas last year partnered with the Bored Ape Yacht Club for the launch of its own NFT, while Gucci collaborated with several collections to put their clothing on famous NFT characters. Most recently, Lacoste launched a collection that entitles holders to exclusive clothing drops.
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