Fashion Brands Score With NFTs, But Market Trends Show Threats Abound
According to a recent report, iconic fashion brands from ready-to-wear sportswear to haute couture have been reaping the financial rewards of their bespoke NFT (non-fungible token) collections. Reportedly, the top fashion NFT drops have collectively generated $260 million in sales since December 2021, with the top drops generating more than $185 million in revenue alone.
With millions of dollars in sales, the NFT market is a prime target for financial crimes, including money laundering, terrorist financing and scams, according to a recent report by blockchain analytics provider Elliptic. Key takeaways from their report’s findings: (i) Over $50.6 million worth of NFTs have been publicly reported stolen in the past year; (ii) sanctioned entities pose a growing threat; and (iii) since 2017, NFT-based platforms have reportedly facilitated the laundering of over $8 million in illicit funds. Despite these startling statistics, Elliptic concluded that “the perceived chances of NFT-based crime occurring is higher than it actually is” and “the true instances of these crimes account for a small proportion of NFT-related trade.”
Categories: Commodities, Food for Thought, Investment Wisdom, Private Equity, Trends, Patterns, Indicators