The Crypto Explorer

The Crypto Explorer: NFTs and the luxury market

Welcome to the written edition of The Crypto Explorer, a podcast by Sygnum Bank which takes you into the exciting world of crypto and Future Finance. Discover the key takeaways from our conversations with leading figures in crypto and finance.

In this episode, host Aliya Das Gupta and guests Kelly Vero, Chief Metaverse Officer at Aequaland, and Elena Baltaga, Relationship Manager at Sygnum, give you an inside look into the standardisation of Non-Fungible Tokens (NFTs), NFT standards for luxury, the approaches of different brands in the virtual space and what is likely to come next.

Listen to the full podcast episode here.

Aliya Das Gupta: What does the standardisation of an NFT entail?

Kelly Vero: This is an oxymoron, because the whole purpose of decentralisation is that things are not standardised. Anyone can create an NFT and put it on the market. However, the question that arises is what makes it good? Last June, I produced something about an NFT and art luxury standard, and now this standard is starting to be adopted. It’s a fourfold standard, which includes the metadata backend information on a given NFT.

Aliya Das Gupta: What does this mean? What difference does this NFT standard make for a buyer?

Kelly Vero: What I wanted to do is bring the image to life. The buyer will have the image itself of the handbag and the geometric data of the image. This means that you have the export format of the image, so it can be used in a game or in any other virtual scenario, giving the added value of utility. Then, I added the digital rights management, which is so much more than a smart contract. Finally, I created an algorithm that supports the object itself.

Elena Baltaga: Yes, as Kelly mentioned, the standard is fourfold: value, dimension, ownership and utility. Which allows the NFT to be used in various industries for various purposes.

Aliya Das Gupta: There is no global NFT Council that is making big decisions. So, in this completely open market space, where is the room for something like a standard NFT? Is yours the only one, or is there something else that is out there?

Kelly Vero: This is a question of semantics, because you can call it standardisation, but you can also call it a framework. When I wrote the algorithm, I took it to the IEEE, which is the world’s largest trade organization supporting standardisation of a variety of different interoperable and technological advancements. The organisation wants to bring the NFT in line with their standards.

Aliya Das Gupta: As a community member, is this something that you could then even propose to a DAO?

Kelly Vero: Yes. The luxury community in the art community is a little more discerning. There are people like me that literally go out and look for specific pieces, and we have to be sure that the process is secure and trustworthy.

Aliya Das Gupta: Could you tell us what is happening in the NFT space with regard to luxury?

Elena Baltaga: I think everyone has heard that FTX is looking into the luxury industry and thinking how to develop this. Dolce & Gabbana already did something two years ago, and Karl Lagerfeld as well. In fact, this is not only happening in the fashion industry, but also in education and culture.

Aliya Das Gupta: Does an NFT no longer represent a bag? Or how do you ensure this kind of connection and continuity?

Kelly Vero: “The community buying into luxury and art has to decide if they are getting more value from an NFT or from the physical luxury good.”

Kelly Vero: The community buying into luxury and art has to decide if they are getting more value from an NFT or from the physical luxury good. We could say that the digital version has more value than the physical one. Because, even after the bag is broken, you know the NFT is going to continue to bring you value in whatever state it is.

To be the first to get the latest news on Sygnum and the market, expert insights and industry research please follow us on Linkedin and Twitter.

Because Sygnum is a bank and some of the information in the podcast relates to financial and investment topics, we want you to understand that we do not create a bank client relationship with you when you listen to the podcast. By listening to the podcast, you agree that the information on this podcast does not constitute professional advice and no bank-client or other relationship is created between you and Sygnum. Do not consider the podcast to be a substitute for obtaining advice from a qualified investment advisor. The information in the podcast may be changed without notice and is not guaranteed to be complete, correct or up-to-date. All information you hear is never considered to be a solicitation for any purpose, in any form or content.

Read next article

Are you in Switzerland?

It looks like you are using a computer with an IP address located outside of Switzerland. If you are located in Switzerland, please click “Continue” to access the Sygnum Bank AG (“Sygnum Bank”) website. If you are not located in Switzerland, please read below.

Local restrictions – Provision of cross-border services

Sygnum is a regulated bank supervised by the Swiss Financial Market Supervisory Authority (FINMA, Laupenstrasse 27, CH-3003 Bern). The products and services on this website are authorised for sale in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so. Without prejudice to provision of services on the basis of reverse solicitation, Sygnum provides investment services in accordance with EU third-country regimes (where applicable). Sygnum is allowed to provide services only to per se professional clients and eligible  counterparties as defined under MiFID II.

If you are located outside Switzerland and click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.


Investor qualification

The following content is available to professional and private qualified Swiss investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

Security alert

Stay alert to fraudulent communications. Sygnum will never post messages on social media or private messaging applications regarding e-banking access or logins. If you have concerns, contact us.