In order to bring the spotlight onto the current state of the Art market and its intersection with finance, we must first take a step back and paint the scene describing the evolution of this niche known and open only to elite high net-worth individuals/entities.

For centuries on end, art has always been both the precipice and driver of social and creative culture. To show for it; the aristocracy and ruling class, dubbed as our society’s tastemakers over time, funded, owned, and invested in the creation of art and its transcendence into our culture since its ‘boom’. From the Medici family’s backing of the high renaissance movement in the 1500s to Sotheby’s and Christie’s opening of now monopolistic auction houses in the 1700s, the aristocratic elite have had their hands deeply rooted in the movement of the fine art world through time and culture from the very beginning, quietly profiting and holding their thumbs on the scales of this sneakily ‘if you know you know’ industry.

Since its boom, the fine art world has primarily consisted of two parties, those collecting art and those investing in the art as a financial asset. Most recently the art market boom in the ’60s saw the gates open for interested parties to approach fine art as a lucrative alternative investment. Over time, wealthy elites have turned to exploit the fine art markets’ seemingly abnormal returns in an extremely closed manner and no-outsiders fashion. In fact according to Forbes, over the last 25 years, the fine art market has seen 14% annual returns versus only a 9.5% annual return from the S&P 500 in the same time period. It is clear to see now why the aristocratic elite have done their diligence to both keep hush and restrict access to the lucrative sub-niche of fine art investment. By driving prices and ‘value’ of market-defining art to exorbitant highs, the ‘inner circle’ has essentially priced the common man out of the game hindering any opportunity of tapping into this largely unknown financial asset.

Now, as we enter a new age of technological innovations making their way into the roots of all society, the fine art industry can be found at a once-in-a-lifetime crossroads. With emerging blockchain, AI, and greater Web3 technologies, the fine art industry is itching to be disrupted and turn over to fully bridge the gap and find its most optimal intersection with the new age of technology.

EXXIT

Through a combination of our revolutionary technologies and innovative culture, EXXIT is opening to the common man the floodgates of accessibility to fine art investment. We at EXXIT are on a mission to disrupt both the fine art and luxury goods markets via blockchain technology and easily accessible financial tools. To put this in simple terms, the common investor will now have access to invest in ‘shares’ of world-renowned artworks such as (but not limited to) a Picasso, the same lucrative fine art previously made institutionally inaccessible. We see a future where anyone globally can have access to luxury ownership at any price point. A future where shares of hard assets can be bought, sold, and leveraged in order to build wealth. In our seemingly uneasy climate of financial market movement; now more than ever is the time to get ahead of the curve, EXXIT the herd, and pioneer the path untravelled.

First and foremost, fractionalized art ownership allows for greater accessibility to high-value works of art. In the past, only the wealthy elite had the means to invest in fine art, but with fractional ownership, smaller investors can now get in on the action. This not only democratizes the art market, but it also allows for a wider pool of investors, leading to increased liquidity and stability. This caveat to traditional fine art investing brings benefit to a multitude of parties at play. Outside of the obvious advantages to the common man, this also allows art collectors and institutions to generate consistent revenue streams from their otherwise ‘sitting’ assets. In addition, this also opens the door to the over 80% of wealth managers seeking to incorporate art investment into their service offerings (Deloitte Art and Finance Report 2021). The widespread availability of art investment via the innovation of fractionalization will allow wealth management and family offices to incorporate these services as a digestible option to a larger set of new clientele, and do so at scale.

Secondly, blockchain technology provides a secure and transparent platform for managing fractionalized ownership. Smart contracts can be created to track ownership and distribute profits, eliminating the need for a central authority and reducing the potential for fraud. This not only protects the rights of every investor regardless of their net worth, but it also adds a level of trust and confidence to the market. The technological innovation EXXIT has built this blockchain-enabled platform on will also prove beneficial to the artists, who in turn can be assured of receiving lifelong benefits, equity, and returns from their work which could be enabled in an immutable way with a secure chain of custody. This is opposite to the traditional flow of processes in the art world where after the initial sale of art, the artist has no way to benefit from their works no matter the increase in value as there are no ways of retaining any equity/ownership outside of full buyout. Furthermore, the integration of Web3 technologies, such as non-fungible tokens (NFTs), allows for unique and verifiable digital representations of physical artworks. Not only does this makes it easier to manage and track ownership, but it also opens up new possibilities for art to be exhibited and sold online. This is especially relevant in the current climate, where the pandemic has disrupted traditional art markets and made it more difficult for buyers and sellers to connect.

The intersection of fine art investment and emerging blockchain technologies has the potential to revolutionize the way we approach alternative investments. Fractionalized art ownership allows for greater accessibility and democratizes the market, while blockchain and Web3 technologies provide a secure and transparent platform for managing ownership. As such, it is clear that fractionalized art ownership backed by blockchain and Web3 technologies will and should drive the future of alternative investments. Here at EXXIT, we stand firmly on our mission to disrupt the institutionally gatekept world of fine art and greater luxury hard assets. By facilitating open investment accessibility and providing expert guidance in a niche holding upwards of $1.7 trillion in assets almost entirely dissociated from traditional financial markets, the keys are now in the hands of the common man to make the decisions. Become the new-age pioneer. EXXIT the herd.

Written By: Parth Yadati - Chief Innovation Officer at EXXIT

| .pY |

Sources:

Contact Adriano Picinati di Torcello Director | Global Art & Finance Coordinator      apicinatiditorcello@deloitte.lu . “Art & Finance Report - Highlights in the Art Market:      Deloitte.” Deloitte Luxembourg, 16 June 2022,      https://www2.deloitte.com/lu/en/pages/art-finance/articles/art-finance-report.html.

Pettterson, Anders. “Fractional Ownership of Art.” ArtTactic, 5 Sept. 2022,      https://arttactic.com/editorial/fractional-ownership-of-art-part-i/.

Prisant, Barden. “The Art Market Is Beating the Stock Market.” Forbes, Forbes      Magazine, 27 Mar. 2020, https://www.forbes.com/sites/bardenprisant/2020/03/27/the-art-market-is-beating-the-stock-market/.

Contributors: Elizabeth Adepegba + JoAnne Asenime

The State of Digital Fashion

:This article is here to be your guide on the current state of digital fashion.  This article includes some key definitions to keep in mind. It also includes the platforms, marketplaces, and software that you need to know as you begin and continue to navigate your way through digital fashion:

It can be numbered on one hand the aspects of daily life that we find absolutely essential to function as an individual and also includes members of society. Food, water, and shelter are the basics of life, and close behind them follows clothing. When thinking about what one must do before going about their individual lives, the first thing that comes to mind is dressing ones’ self before stepping into the sight of society. The industry of fashion consists of an immeasurably broad sweeping range, one that directly or indirectly touches every person in this world.

We are entering a new age as a global society not only economically but also culturally as we come out of this pandemic (in an economically skewed fashion)*. For over a year and a half society was restrained to information, communication, and entertainment interactions through only one outlet. The digital landscape. The digitization of our lives is happening as we speak. Economically, this only means one thing for the importance placed on the digital landscape--It is now exponentially greater than ever before. Through the lens of the consumer, the development and growth of commerce in the digital landscape being pushed as the main viable option for businesses means easier and more efficient access to anything imaginable. Through the lens of the brands and companies, this means education and action on moving into the digital landscape is a priority on their agenda as well in order to target these consumers.

As we continue to move towards digitization of our routine life, fashion in all of its importance will inevitably continue to progress in this direction. The space of digital fashion is one still in its infancy. The opportunity to create and also define an entirely new space has never been greater. Through incorporation of blockchain technology, the niche based in Web3 shows the opportunity for gradual mutualism between physical and digital spaces. The applications of blockchain technology and the incorporation of Web3 concepts in the world of fashion are truly infinite and bound only by our own minds and ideas. What has been failed to be mentioned to the public and mainstream is the gradual footing high fashion houses and brands are establishing in the lesser-known Web3 aspect of the digital landscape.

Here are some key terms to better navigate digital fashion:

-Digital fashion*: - Digital projects (regarding any article of clothing) that have no affiliation with NFTs. Any form of digital fashion/design purchased with fiat currency in no affiliation with blockchain technology

vs

Meta Fashion*: - Digital Fashion projects that are minted as NFT’s

Digital Fashion Marketplaces: The Dematerialised(Lukso Blockchain), The Fabricant, DressX, Artisant.IO, Tribute Brand, Digitalax

Terminology: Digital fashion*, Meta fashion* , NFT, DAO, Web3, Virtual Runway

Economically Skewed Fashion*: As we come out of the pandemic on a global scale, first world and wealthy countries will tend to do so at a noticeably faster pace than economically challenged third world countries with little to no infrastructure (As stated by The State of Fashion 2021 report by The BoF).The opportunity and utility that ‘DeFi’ (Decentralized Finance) is able to provide to developing nations and impoverished peoples are life-changing and limitless. Currently, the ability to save and invest in stable currencies or even generate personal wealth is near to impossible for many in the current state of their nation’s financial system. The introduction of blockchain technology and DeFi into these situations seemingly solves these major issues. With truly transparent and authenticated financial tools, those previously excluded and disregarded are now given an opportunity to navigate their financial path through life on a ‘level playing field’.

Blockchain is not a programming language or even a cryptocurrency! Rather the blockchain is a “Distributed Ledger Technology” (DLT) that introduces the idea of an immutable record that will no longer require external central entities to validate authenticity in any aspect. At the most base level, this technology can provide transparency and decentralization of power in any outlet, although to date it has mainly been utilized through a lens pointed towards economic and financial transactions (hence “DeFi”). Approval of any transaction in any particular blockchain is enabled only through multiple parties’ consensus; therefore eliminating the need for a ‘middle-man’ entity with central power for transaction approval, verification, and authenticity. With such a broad sweeping reach of potentially positive influence, the application of this technology lies in the mind and at the hands of the creator. True freedom. True independence. True transparency.

Web3.0: Is the continuation of the development of the greater ‘Web’. It began with the original Web1.0, where the internet was filled with information meant to inform users and that was it. Slowly, this shifted into Web2.0, where the user could begin to interact with the internet as well as with others through the internet through innovations like social media platforms. The current shift into the future of the ‘Web’ as it stands in the digital landscape has been coined with the term Web3.0. Web3.0 can be defined as the next iteration of the internet where the user controls their own personal data. It is essential for one to grasp the concept that a sole differentiator of Web3 is being built on and utilizing blockchain technology. This key concept alone will allow for the exploration and implementation of limitless progressive and productive reform to creation, finance, and governance as a whole. As a user, the digital pivot towards Web3 allows for free flow of finance and thought without middle-man regulation, authentication, and verification as it stands in our current state. Data will no longer be stored in centralized repositories. This progression has already begun revolutionizing every industry and niche imaginable. And if Web3 has not touched your specific niche or community to date, it is important to understand it will make its’ way to innovating your space much quicker than you would think.

As it pertains to fashion and its place in our current world, its shift, and progression into Web 3.0 will be the next industry revolutionizing turning point. There are a plethora of different avenues of utility that web3 will bring to fashion. From dressing personal avatars in immersive virtual realities to its application in bridging the physical and digital worlds, the utility can truly be explored to an endless extent. The infinite possibilities of utility that web3 can bring to fashion essentially all fall under one main umbrella. That is, the once-in-a-generation opportunity has come along to break the cycle and system of current power and control. Being in an absolutely new space that has yet to be explored by the majority of the global population; small, unique, and innovative creators have an opportunity to define new standards for the industry from ground zero. It is only the absolute responsibility of the next generation of creators and innovators bringing fashion into Web3 to do so in a manner that leverages control for and allows the average human being the opportunity to build out with audacity and bring positive change into a traditionally institutional space.

As if on cue, large conglomerates and fashion houses have recognized the untapped potential of fashions’ place in web3 and began to move on establishing footing. On one hand, this brings the opportunity for institutional gatekeeping to be broken down in the industry.

“Still finding its footing, NFT technology has opened the fashion industry to new possibilities through co-creation and collaboration with crypto-native fashion brands. This is a considerable achievement for an industry notorious for being secretive about its work.” (Muchaneta Kapfunde)

On the more concerning flip side, this also allows the opportunity for the exploration and establishment of this new space to play out frighteningly similar to how large conglomerates monopolized power in the Web1 and Web2 eras. With the majority of high fashion houses and conglomerates racing to get a footing in a space that most of the mainstream public has yet to even dream about, there is an existential fork in the path of Web3 staring small creators and innovators dead in the eyes. To either lay over and allow these centralized and institutional powers to steamroll their way into colonizing this unexplored space, or step in and proactively act to define the boundaries of the space in its total decentralization as it should be.

Blockchain technology holds the power to liberate people impoverished in all aspects from their struggles. By providing all with the opportunity for a level playing field, we will begin to see our world take shape towards true equitability. A concept that for all too long has been just that, a concept, is now slowly coming to fruition on the backs of small creators and conglomerates alike. Although what this means for fashion is still largely yet to be explored, it is clear that the path of fashions’ progression into Web3 is that of revolutionary importance. All in all, it is safe to say a new age is beginning to dawn over the state of fashion. The development of blockchain technology and Web3 as a whole has subtly been ushering in the transition and progression of fashion into a new digital landscape holding infinite possibilities. Concurrent to the limitless possibility to be explored lie the unintended repercussions of this transition. In our next post, we will take a look at and dive deeper through the lens of sustainability into the not-so-obvious implications the progression of fashion into Web3 will bring, as well as what this means for entities adapting into the space.

Digital Fashion Entities and Notable Figures:

• Karina Grant- The Dematerialised

• Marjorie Hernandez- The Dematerialised & Lukso

• Natalia Modanova- DressX

• Daria Shopavalova

• Kerry Murphy- The Fabricant

• Subham Targaryen - XR Couture

• Emma-Jane MacKinnon-Lee- Digitalax

• Gala Marija Vrbanic- Tribute Brand

• Regina Turbina- Artisant.io

• Fabian Vogelsteller- Lukso

• Maghan McDowell

Perspective.pY:

All in all, it is important for one to acknowledge the movement of fashion towards the digital landscape as the digitization of our surroundings ensues. As a space that houses creative thought, it is clear that the boundaries and definition of acceptable design will be pushed more than ever in the digital fashion space. Being in a state where the space is being built from scratch, small creators and innovators have the unique opportunity to define the flow of thought from ground zero for the betterment and greater inclusion of their peers as well as the breaking down of gatekeeping.

Through the incorporation of blockchain technology, the niche based in the greater Web3 shows the opportunity for gradual mutualism between physical and digital spaces. The applications of blockchain technology and the incorporation of greater Web3 concepts in the world of fashion are truly infinite and bound only by our own minds and ideas. The transition of fashion into the digital landscape also allows for unique onboarding and education opportunities into blockchain technology and greater Web3 concepts for entities to provide their mainstream audiences. What has failed to be mentioned to the public and mainstream is the gradual footing high fashion houses and brands are establishing in the lesser-known Web3 aspect of the digital landscape. The future is now.

Insight.pY: Sustainability Cont.

As sustainability relates to digital fashion, a new term advised to fashion brands entering the digital fashion space being coined is ‘greener blockchains’ that lead to less miner emissions. An additional viewpoint that can be taken on sustainability as it relates to digital fashion is that as the space of “phygital” (physical and digital) commerce continues to be explored, the average consumer will now value their garments and pieces on a different level than before, and be disincentivized to toss garments in the trash to be sent to landfills…

“The few brands that outperformed either played into the needs of the moment — comfort, outdoor activities and online shopping — or appealed to wealthier cohorts who were able to better weather the impacts of the crisis.” (The State of Fashion 2022)

“Moreover, the losses of the bottom 80 percent in terms of value creation more than offset the profits of the top 20 percent.” (The State of Fashion)

pY’s 4 Themes Defining the Future of Fashion

• INFLATION WILL AFFECT ALL OF THIS

  • Importance of Global Presence…

    • Global supply chain link + Recovery Dependant on Economic Well-Being = Increased importance domestic spending --

  • Web 3.0

    • Exploration of completely uncharted space = Race to establish footing (with aggression as competition in markets is unbelievably high)

  • Sustainability

    • Circular flow of textiles -- end to end sustainability

  • Consumer dictated shifts

    • Shifts in Taste + Exploration of Metaverse =

The Future of Fashion -- As Defined By Yadati

To assess the shifts in the state of fashion solely through the lens of the global pandemic would be tunnel-visioned of one looking to grasp a holistic understanding of what is to come. With that being said, it would be foolish to neglect the role the pandemic has played in releasing to the foreground the underlying shifts in fashion being built up for years in the making. A plethora of social and technological dynamics have been pushing fashion into the future with what was an invisible hand to most pre-pandemic. As we step into a new decade, supply chain resilience and the importance of both emphases on sustainability and the digital universe to the younger generation are all top 3 on the agenda for opportunity, importance, and growth for C-suite level executives in the fashion industry (McKinsey and Company). These factors have been thrust in the spotlight as viewed by the gaps in the fashion industry as well as untapped markets for extreme growth both of which have been accentuated by the pandemic. The future of fashion is now.

1)The Importance of Global Presence

• Global supply chain link + Recovery Dependant on Economic Well-Being = Increased importance domestic spending --

• Global middle class shrank by 54 million in 2020

• 80% of the 5.5 billion vaccines administered were in upper and middle income earning countries…so if they are the big spenders why do the rest of the small countries matter?

• Inequality is increasing across country groups + McKinsey Fashion Scenarios project an almost complete recovery to pre-pandemic sales levels in 2022 in Europe, the US and China = The money is being spent at the same rate and the inequality gap is increasing means the rich are getting richer and spending more. How can fashion houses tap back into the common man and inclusion of middle class.

• With supply chain issues, brands are forced to put more thinking into the strategy behind balance of speed to market with inflated shipping costs. Diversifying sourcing base will be key to successful fashion houses and brands post-pandemic

  2)Web 3.0

• DressX, a platform that estimates the total addressable market for digital fashion at $31 billion151 and has more than 100 partner designers offering digital fashion items

• As consumers get more and more used to and integrated their lives into the metaverse interest in collecting digital artifacts the same way we do in archive fashion is likely to deepen.

• The Fabricant being the first digital fashion house and breaking down the gatekeeping culture surrounding fashion and the greater context of creativity.

3)Sustainability

• Circular flow of textiles -- end to end sustainability

• “Fashion is responsible for 10 percent of human-caused greenhouse gas emissions and 20 percent of global wastewater, and uses more energy than the aviation and shipping sectors combined.”

4)Consumer Dictated Shifts

• Domestic consumption will determine how quickly companies are able to capitalize off post covid revenge spending

• It is .pY’s prediction that the cultural craze for the sneaker landscape of fashion will die down in this area and begin shifting towards utilitarian and recognizably minimalist footwear. Pieces like boots will see a rise in popularity.

• With counterfeit markets exploding and the quality of these counterfeits becoming increasingly discernible from the original, companies will take advantage of product passports to ensure consumers authentic product. With this comes opportunity to tap into the marketing aspect of exclusivity proven by product passport. Inherent increase in value.

.pY

Hello,

My name is Parth Yadati. Like many for centuries before me. I have slowly grown to become infatuated by the culture and tenured history behind fashion and its legendary pioneers. Taking the time to understand and scrutinize different attributes and intricacies that brought legends from Charles Fredrick Worth to Virgil Abloh to the pedestal they attained has provided me with a priceless mindset as well as heightened overall awareness and growth. I have over time grown to realize I have found in fashion what most people seek in a “passion”.

I will

create a lasting impact in the world of fashion.

I hope to build out the entity .pY for the greater advancement and progression of fashion through culture.

.pY is a social brand and project that seeks to explore the intersections of fashion, sustainability, and Web 3.0. We aim to create a medium for which consumers to engage at the forefront of responsible and sustainable innovation through the outlet of fashion.

ComingSoon.pY