Sunday 28 April 2024

Louis Vutton Demonstrate They are Either Very Late or Very Early to the NFT game with the VIA Collection.


Anyone who has not been living under a rock for the last 20 years knows what cryptocurrency is.  NFT's are a little more niche, but even the mainstream media discussed these over the past few years, with gushing interviews where Paris Hilton and Justin Beiber spoke about their Bored Ape's, and auctions of these digital art pieces went for many millions of dollars online, and in the real world at Sotherby's and Christies. 

However, while cryptocurrency appears to still have some utility, with its market retaining more than $2.5 trillion, NFT's are beginning to become regarded as worthless.  For example, the Bored Ape NFT Justin Beiber paid $3 million for, was worth less than $53,000 in mid 2023.  It seems that LVMH didn't get the memo however, and they've launched their own "digital collectibles".

Beginning with the VIA Treasure Trunk for €39,000, owners of this will get the "opportunity" to get other digital collectibles, like the VIA Varsity Jacket, which is from Pharrel's new Spring Summer 2024 collection.  Except you cant wear it, use it, or resell it like the actual garment, and it costs €7,900.

We are not fans of NFT's, and don't see the point of them.  Unlike cryptocurrency which has some purpose, NFT's main purpose is to separate people from their money in pursuit of the greater fool theory.  The market appears to have reflected this, with the NFT bubble bursting so fast it made tulipmania look like a sensible long-term investing strategy.  It's unsurprising LVMH have jumped on the bandwagon therefore, as they increasingly seem interested in a quick buck, and good taste be damned.  It is however a bit curious why they jumped on so late.  

Or early?  Who knows!  Maybe the "genius" behind this at LVMH is super ahead of the the next NFT bubble?  Or maybe the "quality" that is the brand will reinvigorate the whole NFT market?  Maybe.  But we doubt it.

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