Reviewing StockX’s Entry Into NFT Fashion
In January 2022, StockX officially entered the world of NFTs, which means a lot for the sneaker industry and enthusiasts.
StockX: Sneaker Powerhouse
For a long time, StockX has become the go-to platform for people interested in discovering, consuming, and investing in sneakers. StockX refers to their niche as current culture, and current culture exists at the intersection of music, sports, and fashion with far-reaching influence. @stockx shared this tweet on January 14, “Coming soon.”
StockX was created primarily as a stock market for sneakers, and it operates like a stock market where buyers can easily access items they desire, and sellers can seamlessly make money from their items. StockX is built on the foundation of authenticity, and they claim that their pricing is based primarily on supply and demand.
@stockx shared the following tweet; “NFTs are on StockX. Introducing #StockXVault: a digital NFT that’s backed by a physical product and stored in an official StockX facility. Learn more: https://bit.ly/3GEddYv Now, secure yours”.
One thing that separates this platform from traditional stock exchanges is that all the orders facilitated there involve physical products that sellers send to them for verification and authentication. When StockX authenticates an item, buyers can purchase it to be used, held as an investment, or resold. In 2022, StockX has cemented itself as the premier platform for trading current culture.
StockX Vault NFTs
On January 18, 2022, StockX announced the launch of its new product, Vault NFTs. According to the company, Vault NFTs will allow users to invest in NFTs tied to corresponding physical products. Holders of Vault NFTs can trade them instantly for considerably lower fees than applicable on the platform.
Vault NFTs fall under a new category of “alternative assets” associated with NFTs. When you purchase a Vault NFT from StockX, you’ll also own a corresponding physical item and the right to take ownership of said physical item when you wish.
Vault NFTs are minted as ERC-1155 tokens on the Ethereum Blockchain under custodial authority, and each Vault NFT edition is serialized to a verified product in its secure, climate-controlled vault. By better connecting the digital and physical worlds, StockX is reimagining the possibilities of investing in current culture on the platform.
What does this mean for the Company?
StockX has massive plans for their NFT program, and linking NFTs to physical products is only the beginning of their foray into the Cryptoverse. In the future, StockX may reward NFT holders with positive reinforcements like access to exclusive giveaways, events, and even products not available to the public.
StockX has also expressed interest in partnering with brands and artists but is yet to share any concrete plans on this front. Suppose StockX designs their NFT sales like other successful marketplaces. In that case, they may end up hosting a community of millionaires and billionaires, similar to how Bored Ape Yacht Club message boards host some of the most successful and famous people in the world.
Scott Cutler, the StockX CEO, shared the following about their NFT Vault, “Our digital future will enable an ever-expanding opportunity to trade and consume current culture.”