Crypto Couture Partners
Why Crypto Couture Partners?
- Crypto Couture Partners believe that we are at the beginning of a Crypto Luxury revolution.
- The Luxury sector had lagged many other sectors in undergoing Digital Transformation, in the belief that Luxury customers would always want the high-touch experience of Luxury shopping.
- Non-Fungible Tokens (NFTs) provide Luxury brands an opportunity to leapfrog into the future now. NFTs provide an ideal bridge between physical and digital by allowing the simultaneous ownership of physical objects paired with their unique digital manifestation.
- NFTs appeal to Luxury customers, from the ultra-wealthy to the digitally native aspirational customer steeped in the amalgam between gaming, street and virtual cultures.
- Crypto Couture Partners will partner with established and new Luxury brand creators and provide them access to selected creative, marketing, technical, and/or legal & administrative support, as appropriate, to engender the creation of digital assets of enduring value -- true luxury products, thus ensuring their value preservation and potential for appreciation.
- We aim to unleash new creativity and to create sustainable, equitable and inclusive business models to support the growth of a new economic activity.
- Interest in Crypto assets has primarily been focused on Crypto-currencies (eg. Bitcoin), seen either as (speculative) investments or untraceable currencies used to make discreet purchases.
- Today, we are seeing the emergence of a wave of new Crypto-assets that are not currencies, popularized under the name “NFT” (for Non-Fungible Token).
- These new Crypto-assets have a purely digital manifestation (e.g., an image, a sound clip, a video clip, an animation, or a 3D rendering) or they are paired with a physical manifestation (e.g., an image of a sneaker and a physical sneaker matching the image).
- There is no defined limit for what can be turned into a “Crypto-asset” and it is clear we will see a large of influx of new creations vying for consumers’ attention and their spending power.
- Consumers and collectors’ interest in this new asset class has exploded in 2020/21:
- According to Andreessen Horowitz, a leading VC investing Crypto, there are more than 3M NFTs for sale today, and sales volumes have grown 400x year-over-year to exceed over $100M per week.
- On OpenSea alone, trade volume has increased 100X over the last 6 months.
- In February 2021, RTFKT studio sold 621 pairs of sneaker designs created by a young designer for an aggregate amount of $3.1M in 7 minutes. The NFT purchasers will receive a physical pair.
- According to the Wall Street Journal, in February 2021, the NBA Top Shot marketplace, which sells NFTs of short NBA videoclips (“moments”), has processed $250M in sales from 100,000 buyers.
- In March 2021, Christie’s sold digital artist Beeple’s Everydays: the First 5000 days for $69M with the bidding starting at $100.
- NFTs are attracting collectors and consumers’ attention because they are digital assets whose authenticity, ownership and provenance can be unquestionably and publicly proven. NFT purchasers relish being the publicly acknowledged record owners of a digital asset that can be still be shared and consumed by anyone. Imagine owning the Mona Lisa and giving everyone a copy bearing your name.
- The technological infrastructure to enable this phenomenon has been coming into place over the last 10 years. As consumer interest has dramatically increased in the last 6 months, there has been an acceleration in the consumerization of the platforms to make these assets discoverable and tradeable.
- It’s like the emergence of E-Trade or Robinhood for stocks. (Except that there aren’t many stocks to trade yet…)
- The core of the NFT Crypto-asset is a special type of token registered on a Blockchain.
- Unlike other Blockchain tokens which are fungible, this token is unique (hence Non-Fungible).
- Like other tokens on public Blockchains, NFTs are public -- anyone can see their assertion of ownership of specific digital assets -- and they are governed by Smart Contracts that define how they can be traded on a Blockchain.
- Attaching a unique proof of ownership to a digital object within a digital ledger creates the conditions necessary for the digital object to become tradable with complete transparency of provenance and authenticity. With improved trading conditions, a virtuous circle has been created.
- Importantly, control over the Smart Contracts has allowed creators to embed indefeasible Smart Contract terms that benefit them and have been lacking in the digital world, including the inclusion of a lifetime cut of all resale transactions of the NFT!
Where & How We Will Add Value
- Asset Definition. A Luxury NFT can still be defined as many things, including digital assets (e.g., images, video clips, sketches, etc.) or a combination of digital assets with physical assets and experiences.
- Smart Contract Construction. Defining sustainable, equitable and inclusive Smart Contracts will require connecting entities to the Crypto value chain that are not familiar with it, including artisans, IP clearing houses, and non-profit organizations, among others, as well as the community of fans that will help promote the works produced by the creators. Revenue splits to be embedded in Smart Contracts will need to be designed to sustain the production of Luxury NFTs.
- Production. Luxury Crypto-assets will cover a broad variety of digital products for a multiplicity of mobile/computer, gaming platforms and AR/VR platforms.
- Marketing. Luxury NFTs will need to be marketed to digitally savvy audiences, as well as to less savvy ones who may be the most affluent.
- Trading. The choice of trading platform for an NFT is likely to evolve from beyond the limited choices available today, which include legacy players such as Sotheby’s and Christies and Crypto-natives such as OpenSea and KnownOrigin. New platforms will emerge to service different customer segments.
- Administration. The Luxury NFT ecosystem will need to encompass legal, accounting and security advisors, among others.
- Positioned at the emergence of a new asset class that shares characteristics with media, real property, gaming and consumer goods, with rules of the game that are being defined as hundreds of millions of dollars are changing hands weekly, the Crypto Couture Partners’ team is multi-disciplinary, agile and experienced with digital disruption. It also reflects the founders’ values centered on building a better world through empathy, fairness and concern for the planet.
- Crypto Couture Partners was co-founded by and is led by Laurent Ohana, a 25 year Internet 1.0 and 2.0 leader with experience launching pioneering projects and companies in virtual communities, digital mapping, DTC fashion & beauty, IP licensing & acquisition, and digital marketplaces, active in the US, Europe, Israel and China, educated at Berkeley and NYU Law, and trained as a Wall Street lawyer.
- Crypto Couture Partners was co-founded by Ohana & Co, a Paris, NYC & LA-based boutique investment bank which has become the go-to advisor of Luxury Brand creators and owners over the last 25 years. Ohana & Co is led by Ariel and Karine Ohana.
- Crypto Couture Partners’ Advisory Board Partners (in formation) includes exceptional individuals covering the world of Art, Fashion, Crypto, eCommerce and Technology.