Simmering in the feeling of a fresh-leather smelling Gucci bag , or bling of a Rolex watch sparkling around the room like a strobe light is a mighty feeling for one to aspire. Being apart of a luxury brand’s (or asset class’) image connects people to a story that has the potential to elevate their status in society by sheer association.

The wide array of asset classes that comprise the luxury industry include art, jewelry, clothing, liquor, vehicles, and even truffles. Along with the lure of their ownership these goods hold value well (even appreciating) whereas similar lower quality items like clothing and vehicles depreciate significantly after the initial purchase.

Yet having a wardrobe, cupboard, or house full of these luxuries have their set of limitations namely the opportunity cost of the investment, which otherwise could have been towards a business venture. Challenges in the luxury industry at large include counterfeiting, lack of liquidity, price fluctuations, and sales channels which can be unreliable with cumbersome sales cycles and processes.

NFT’s could be likened to be the “luxury of the blockchain”, due to the fact that each derives its value from their unique, scarce, and collectible nature. Major luxury names such as Cartier and Prada have recognized the emerging synergies and have partnered to create the Aura Blockchain Consortium meant to be the world’s first global luxury blockchain.

The ‘fad FUD’ of luxuries teaming with NFT’s can be entirely eliminated, since its characteristics effectively solve the industries’ plaguing issues with authenticity, liquid markets, and supply chain documentation. In the virtual world it democratizes access to luxury goods with the opportunity for fractional asset ownership. Luxury clothing as an NFT, for example, also has value in virtual reality where it can be worn or displayed by digital avatars.

Creation of an NFT in itself then beckons exposure into the vast realm of usability in DeFi (decentralized finance) with use cases such as providing liquidity, staking, and lending. Selling NFT’s (mainly digital art based) have also become a lucrative undertaking according to blockchain analytics firm Nansen with a top collector profiting more than $3.6 million with a reselling strategy.

If the success of digital art NFT’s could be of any indication then the luxury industry could expect a similar boon as it continues to integrate its products. Investors each with their own areas of expertise ideally will be able to confidently invest in a particular luxury asset-based NFT class and realistically expect a rapid turnaround and ROI.

LuxFi is a real world asset-backed luxury NFT DeFi solution, that comprehensively facilitates the syncing of the physical and digital in an elegant and sophisticated way. Tokenization of all kinds of luxury assets is streamlined with a few simple steps that authenticate the product, secure metadata on the blockchain, then create an NFT which is linked to a card offline.

These NFT’s can then be exchanged on LuxFi’s online marketplace where the buy/sell procedures resemble an efficient Ecommerce setup. Collateralized lending is accessible for product owners with an NFT as a deposit, and a lending platform enables investors to obtain passive income with an interest yielding loan payback.

Once on the marketplace an NFT has the chance to be fractionalized where multiple people can lay claim to ownership of the luxury asset. This allows a fundraising element as well where a group of friends or business partners might choose to invest in an NFT together.

For NFT loans that fail to be repaid, liquidation auctions are available, which could also prove to be a valuable method to increase involvement in the luxury/NFT business at a discount.

If living the luxury life on the blockchain is possible, then NFT’s will most certainly be the mechanism to achieve it. While LuxFi might be the solution that helps to bring it all full circle.

Simmering in the feeling of a fresh-leather smelling Gucci bag , or bling of a Rolex watch sparkling around the room like a strobe light is a mighty feeling for one to aspire. Being apart of a luxury brand’s (or asset class’) image connects people to a story that has the potential to elevate their status in society by sheer association.

The wide array of asset classes that comprise the luxury industry include art, jewelry, clothing, liquor, vehicles, and even truffles. Along with the lure of their ownership these goods hold value well (even appreciating) whereas similar lower quality items like clothing and vehicles depreciate significantly after the initial purchase.

Yet having a wardrobe, cupboard, or house full of these luxuries have their set of limitations namely the opportunity cost of the investment, which otherwise could have been towards a business venture. Challenges in the luxury industry at large include counterfeiting, lack of liquidity, price fluctuations, and sales channels which can be unreliable with cumbersome sales cycles and processes.

NFT’s could be likened to be the “luxury of the blockchain”, due to the fact that each derives its value from their unique, scarce, and collectible nature. Major luxury names such as Cartier and Prada have recognized the emerging synergies and have partnered to create the Aura Blockchain Consortium meant to be the world’s first global luxury blockchain.

The ‘fad FUD’ of luxuries teaming with NFT’s can be entirely eliminated, since its characteristics effectively solve the industries’ plaguing issues with authenticity, liquid markets, and supply chain documentation. In the virtual world it democratizes access to luxury goods with the opportunity for fractional asset ownership. Luxury clothing as an NFT, for example, also has value in virtual reality where it can be worn or displayed by digital avatars.

Creation of an NFT in itself then beckons exposure into the vast realm of usability in DeFi (decentralized finance) with use cases such as providing liquidity, staking, and lending. Selling NFT’s (mainly digital art based) have also become a lucrative undertaking according to blockchain analytics firm Nansen with a top collector profiting more than $3.6 million with a reselling strategy.

If the success of digital art NFT’s could be of any indication then the luxury industry could expect a similar boon as it continues to integrate its products. Investors each with their own areas of expertise ideally will be able to confidently invest in a particular luxury asset-based NFT class and realistically expect a rapid turnaround and ROI.

LuxFi is a real world asset-backed luxury NFT DeFi solution, that comprehensively facilitates the syncing of the physical and digital in an elegant and sophisticated way. Tokenization of all kinds of luxury assets is streamlined with a few simple steps that authenticate the product, secure metadata on the blockchain, then create an NFT which is linked to a card offline.

These NFT’s can then be exchanged on LuxFi’s online marketplace where the buy/sell procedures resemble an efficient Ecommerce setup. Collateralized lending is accessible for product owners with an NFT as a deposit, and a lending platform enables investors to obtain passive income with an interest yielding loan payback.

Once on the marketplace an NFT has the chance to be fractionalized where multiple people can lay claim to ownership of the luxury asset. This allows a fundraising element as well where a group of friends or business partners might choose to invest in an NFT together.

For NFT loans that fail to be repaid, liquidation auctions are available, which could also prove to be a valuable method to increase involvement in the luxury/NFT business at a discount.

If living the luxury life on the blockchain is possible, then NFT’s will most certainly be the mechanism to achieve it. While LuxFi might be the solution that helps to bring it all full circle.