THE SMART GIRL’S GUIDE TO NFTS

with Michelle Reeves

Ever wondered what the heck NFTs are? Me too...

By PENELOPE PELECAS

Co-founder and CEO of MAVION (a global fashion and NFT marketplace), ‘Queen of crypto’, and power-list veteran, Brissy local Michelle Reeves is leading the charge when it comes to NFTs, so it was only fitting we sat down with her for a casual chat. From explaining what NFTs actually are and how they work, Michelle answers all our burning questions...

Hi Michelle, thanks for chatting with us! So, to answer the question on everyone’s lips... what actually are NFTs?

To understand what an NFT (Non-Fungible Token) is, it’s helpful to understand what ‘fungible’ means. Fungible is an item that is interchangeable, like a $1 coin. All $1 coins have the same value, regardless of who is holding it. Non-fungible is an item that cannot be replicated, there is only one, for example, your own personal iPhone.

A NFT is a unique digital asset stored on blockchain [technology] that cannot be replicated. It can be anything digital such as a jpeg (art), audio file (music), video file, or even a QR code. There can only be one true owner or holder of the NFT, and therefore only they can unlock its benefits.

How does an NFT work?

NFTs are stored on blockchain, which is a technology that cannot be copied, deleted, or edited. Blockchain is a digital ledger that records every action that takes place in real time as it happens. It’s like a digital truth serum which makes it perfect for authenticating ownership and verifying products like designer goods, art or limited-edition items that may need to be authenticated or prove ownership.

Once an NFT is created it exists forever and the possibilities become endless. NFTs ‘live’ on the blockchain in a crypto wallet. A crypto wallet (e.g., MetaMask, Coinbase, Zelus, Trust Wallet) store a user’s personal assets like cryptocurrency and NFTs.

What are they used for?

NFTs unlock many capabilities and benefits across many industries. A few examples include:

• Art – artists can authenticate their art and monetise their creations beyond the first sale

• Collectibles and memberships – NFTs can be used to give members exclusive access to content, events, merchandise, and more

• Fashion – NFTs can reward loyal customers, give them access to exclusive benefits, product drops, and experiences

• Music – NFTs can be used to sell and trade unique digital music assets, such as album artwork, music videos, and audio files

• Identity – NFTs can be used to represent and secure personal identity information, such as passport details, medical records, and other sensitive information

A lot of creatives are now selling their art as NFTs, do you believe they’re the future of fine art collecting?

NFTs have the potential to revolutionise the way fine art is bought, sold, and collected, by providing a secure and verifiable way to prove ownership and authenticity of digital art.

Why are NFTs becoming so popular?

Overall, the combination of unique ownership, monetisation opportunities, decentralisation, scarcity, and easier accessibility has made NFTs an attractive option for a wide range of individuals and industries, contributing to their growing popularity.

Should we all be jumping on the NFT train?

In 2002 people asked, should every business have a website? It was new and confusing. Many didn’t understand the ‘web’ and they didn’t have the tools to use it with ease. Luxury brands like Chanel resisted until 2016 when they finally launched their ecommerce website. In 2023, we know that a website is an essential component to operate a modern-day business and for consumers, it’s very easy to use. The same is true for NFTs.

Who are making waves in the NFT space?

Brands have tested specific ideas and some have been more successful than others. Nike and Dolce & Gabbana have dropped NFTs and focused on digital fashion. Alo Yoga dropped a physical clothing collection that came with an NFT, and it unlocks access for holders to visit their wellness studio and attend exclusive yoga classes in Miami, Los Angeles, and New York City. At MAVION, we’re focused on connecting physical and digital fashion to create new opportunities to connect consumers who love limited edition fashion with global designers.

Lastly, are they here to stay?

The future of NFTs depends on several factors: technological advancements, regulatory developments, and market demand. One thing’s for sure though, NFTs are changing the way we think about ownership, access, and community in the physical and digital world.