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How brands are using digital fashion in real life – Cointelegraph

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From Gucci to Balenciaga, big fashion brands are making their way into the Metaverse.
While public interest in the Metaverse has not been completely lost, brands are trying to make the most of its popularity.
Many luxury brands have already jumped on the gamification bandwagon, selling branded skins and buying land in the Metaverse.
We have already visited Decentraland Fashion Week, played the Balenciaga game and regularly watched digital collections move from the mass market to luxury markets.
In addition, in Web3, there is a serious beef between the Hermès brand and artist Mason Rothchild, the man behind the nonfungible token (NFT) MetaBirkins furry bags. This event has attracted public attention to the fact that Hermès uses the skin of exotic animals, while the digital fur is just an image. MetaBirkin raises an important issue: “What do luxury lovers pay for?”
Hermès claims that MetaBirkin uses the brand for its own benefit. Its answer, effectively, is that it’s none of its business — artists draw whatever they want. It’s virtual creative content, not a physical product, and not even a fake at all. In other words, a digital bag cannot be the subject of a lawsuit.
Related: The feds are coming for the metaverse, from Axie Infinity to Bored Apes
In addition, if someone has a digital version of Birkin, they would probably like to buy a real bag by buying a token.
MetaBirkin does not undermine Hermès’ business in any way. Maybe it even attracts a new audience, making a product more hip and modern.
Anyway, this case is a wake-up call for luxury brands, indicating that it is necessary either to launch their digital fashion departments or cooperate with contemporary artists already online.
In general, NFT Birkin Bags are wildly popular: Sellers digitize their vintage bags and sell them as NFTs, producing a real one at the same time. Kanye West bought one for his girlfriend, Cheney Jones, for as much as $275,000. Is this a surprise? With NFTs, such a bag becomes modern art and is considered an investment both in real life and as an NFT.
After such situations, it is clear that the fashion world has moved into digital fashion. Who will miss the opportunity of the hype once again and earn extra money?
Well, first of all, brands began to produce their own NFTs, which gives access to a private club of fans. It’s like a favorite customer’s membership card but more expensive. You also can buy, resell and earn, but it’s not guaranteed.
Tiffany’s provides an example: TiffCoin. Of course, there are only 499 in circulation, and they debuted at a price of 30 Ether (ETH). If you buy one, you will have access to exclusive brand events. However, in fact, what you’re buying is “a cat in the bag.” You know neither the kind of events nor how long you will have access to them. But, perhaps, the owner could be a collector or an honorary client of Tiffany & Co.
The same thing was done by Dolce & Gabbana, but it went even further and launched as many as three versions of its boxes. Dolce offers three types of boxes: the Black one has an NFT with physical and digital drops, along with invitations to events in the Metaverse, the Gold box has invitations to live events, and the Platinum one has more exclusive offers.
One by one, brands are starting to give the opportunity to buy real clothes in their boutiques with crypto. Crypto holders may now shop at Philipp Plein, Gucci, Off-White and Balenciaga.
Related: Throw your Bored Apes in the trash
In order to pay fashionably, they need an appropriate wallet. Fendi will help. After all, it was the one that presented its crypto wallets from the collaboration with Ledger at Men’s Fashion Week. They look like little iconic Fendi Baguette bags but in Web3.
Now, brands are producing the same collections in digital and reality. For example, Zara didn’t miss the opportunity to raise brand awareness, so it dropped a digital version of its clothes. Despite its reasoning, who wants to go to the Metaverse in Zara that has no difference from the real one? While it may be a rough start, there could be a better one in the future.
But, Dolce & Gabbana went further, adapting its real-time ideas to the Metaverse. First, it dressed up cats; secondly, the clothes sparkled and shimmered because in the Metaverse, brands have to stand out, especially to customers who have enough money to buy a Dolce & Gabbana skin.
In general, digital fashion is still an instrument for the audience to capture, free from media traffic. Brands understand quite well, publish that you have something digital and that’s it — it will spread at the speed of light.
For example, Adidas has launched a personality-based AI-generated avatar creation platform: Answer a few questions, and choose sneakers. It’s the same advertising campaign: Everyone decides to make their avatars and post them on social networks; it’s the best marketing. Sure, each avatar looks the same, but that isn’t the point.
And finally, all this digital fashion has moved to the catwalk.
At Metaverse Fashion Week, the Etro brand got at its Liquid Paisley collection. And, in real-time, it became a lot fresher than the brand’s current trends.
Now, there are more:
We are all loaded into the matrix. The fashion for cyber aesthetics has come to us again much after the great popularity of the Wachowski film, in addition to how natural it looks in modern life.
Now more than ever, the public should want to dress like The Matrix’s Trinity, wearing a Balenciaga coat, Gucci glasses and Metabirkin — a real one — complete with a hanging crypto cold wallet by Fendi x Ledger.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Minnesota and Wisconsin include income from NFT sales within the sales tax base – Lexology

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The taxability of non-fungible tokens (NFTs) has been subject to significant debate throughout their relatively short existence. As reported in this newsletter previously, some states (eg, Washington and Pennsylvania) have announced their intention to subject NFTs to sales tax. Wisconsin and Minnesota recently made similar announcements.
An NFT is a unique digital code that is non-interchangeable, representing one specific item of media and potentially the rights to that media. While there is no clear federal or state tax guidance for NFTs, investors in NFTs should expect that the sale of an NFT should be treated as the sale of a capital asset, although some NFTs could meet the definition of “collectibles” (which would result in a 28 percent capital gain rate). There are other tax implications for how NFTs are bought and sold – whether bought/sold for cryptocurrency or otherwise – which are generally covered in existing IRS guidance.
Wisconsin
On October 28, 2022, the Wisconsin Department of Revenue (DOR) released its state tax bulletin and became the fourth US state to include NFTs in its sales tax base. The bulletin was not accompanied by any additional guidance or discussion on some key implementation points such as timing, sourcing, what constitutes a sale, and whether the DOR’s position will be applied retroactively. According to the bulletin, the sale or purchase of an NFT may be taxable if the purchase or sale of the underlying good, product, or service is taxable. This includes NFTs that entitle the purchaser to download music or movies, be admitted to a sporting event, or own a tangible piece of artwork.
For purposes of sourcing a sale, based on guidance from the DOR, Wisconsin indicates it may use the customer’s billing address as a proxy for where the sale occurs. For situations where the customer’s address is not known, the sale may be sourced to the location where the NFT was first available for transmission by the seller. The sales tax rate in Wisconsin is currently 5 percent of the purchase price.
Minnesota
In August 2022, Minnesota also published guidance on the taxation of digital products and specifically on NFTs.
Under rules similar to those in Wisconsin, Minnesota will apply sales tax to NFTs when the underlying product (either goods or services) is taxable in the state. Under the sourcing guidelines, a sale or purchase of an NFT or any digital product occurs when the seller transfers possession to the purchaser, or when the product is first used, whichever comes first. For tax purposes, Minnesota considers the source of a sale to be the purchaser’s address that the seller has on file. It is unclear what the sourcing rules will be if the purchaser’s address is unobtainable. The sales tax rate in Minnesota is currently 6.875 percent.
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Are creators being used as cannon fodder in the NFT game? – Music Business Worldwide

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The following MBW op/ed comes from PPL CIO Mark Douglas. Below, he turns his attention, and bullshit detector, to the much-hyped but little-understood world of NFTs. It’s fair to say he has some questions…
In my last column, I tackled the subject of Blockchains and their relevance to the music industry. I wrote that piece with a degree of apprehension, aware that I was poking the nest of a vocal and passionate crypto community.
As it happens, that article garnered nothing but positive feedback, with many grateful that the topic had finally been explained in terms they understood, and that the emperor had at last been called out for his lack of clothing. Emboldened by this feedback, I’m going to dial it up a notch and dig into the topic de nos jours, NFTs.

NFTs have quickly (briefly?) become a multi-billion dollar thing (I hesitate to call it an industry), and there are a lot of heavily vested interests with loud voices.
For some creators, NFTs have been a godsend, a new way to generate revenue, and I certainly want to have no part in interfering with an artist’s opportunity to monetise their talents. To that end, I’m going to do what many commentators fail to do, and de-couple the revenue opportunity/fan engagement aspects of NFTs from the actual technology and mechanics that underpin them. By doing so I hope to show that the two are not mutually dependent and draw attention to the many risks of NFTs.

Let’s start with the phrase itself – Non-Fungible Token. Many discussions on NFTs start with an explanation of fungibility. It’s a word/concept I first heard back in the late eighties as part of my Chartered Accountancy training. For a long time, the word wasn’t really used outside the finance and accounting community. 
It’s a fairly typical trick of the crypto industry to use arcane, professional terminology to add legitimacy to their latest offering: ‘immutability’, ‘ledger’, ‘dis-intermediation’ – lots of serious sounding words, but ultimately their use is akin to a politician quoting public school Latin to try and convince you they are intelligent, when in fact all they have is a good memory.

At its simplest, a fungible asset is one that can be readily substituted by another. An ounce of 9-carat gold is a fungible asset because any one ounce has the same value as any other. Non-fungible assets, on the other hand, are unique and have a value that is unique to them. Whilst an ounce of gold may be fungible, a gold bar may not be, as the presence of hallmarks affords any one bar a special value to a collector due to its provenance.
One way to think of NFTs is to liken them to this gold example. At their simplest NFTs seek to add those Hallmarks to digital assets that are in all other regards fungible. Whilst the shift to digital has been very liberating, it has also had a very negative impact:  due to being expressed as nothing but a sequence of ones and zeroes, any one digital asset is literally identical to any copy of it.
When your primary output as a creator is a digital asset, it is all but impossible to create differential value in any one copy. Whilst special extended mixes or remixes can be created and sold at a premium, the ease with which exact copies can be made and distributed globally undermines the ability to create proper value. Mechanisms such as Digital Rights Management have been deployed in the past to try and prevent this widespread copying, but they put too many barriers in the way for legitimate consumers and ultimately failed.
“You can do much, if not all, that an NFT can do in much simpler ways.”
So how do you create that uniqueness in an otherwise fungible item? How do you create the digital equivalent of that limited edition, blue vinyl pressing of ELO’s Out Of The Blue that caused much excitement on my school bus back in 1978? The NFT solution to this is to produce not a special version of the asset, but to create a tamper-proof till receipt (I actually now think of the T in NFT as meaning exactly that).
But I’m getting ahead of myself. Let’s back up a bit and look at the mechanics of NFTs, because things should then become clearer.
At the heart of NFTs are blockchains. As covered in my last article, blockchains are all about providing a tamper-proof, public ledger of data. Step one of generating an NFT is to add a ‘smart contract’ onto a blockchain.
If you are imagining that a large, wordy document full of legalese has just been created, you would be mistaken. As it happens, a smart contract is neither particularly smart, nor a contract.
A smart contract is lines of computer code that specify some basic rules to follow when someone wishes to transact through that contract – rules to determine whether any inventory is available, to calculate the unit price and issue a purchase receipt. Think of it as a robotic checkout assistant and you’ll be nearer the mark. In practical terms, a smart contract is a series of ‘if/when…then…else’ statements along with some arithmetic operations, like you would see in a standard spreadsheet.
The crypto world loves smart contracts because they further their ideological pursuit of removing the middleman from the making and recording of transactions.
The role of a smart contract in the world of NFTs is to determine the availability of the item for sale, to compute the price payable, and to ensure that (cryptocurrency) payment is made. The smart contract then creates the actual NFT token by creating a new entry on the blockchain, in a process known as ‘minting’.
Contained within that token is typically little more than the ID of the contract that created it, the crypto identity of the buyer and a unique identifier. You will note that the actual digital asset that was being ‘purchased’ is not in that list of items.
There is a good reason for that. Adding data to blockchains is an expensive process (literally hundreds of dollars per transaction, depending on the prevailing value of the relevant cryptocurrency), and the cost increases with the amount of data you are trying to add. So the NFT is, by necessity, as small as it can possibly be. It’s a till receipt with a serial number, the price paid, and the digital wallet identifier of the buyer.
But we’re not finished yet. There are still more steps involved in getting to the digital asset. The first of these is to use the ID held in the NFT, along with data from the smart contract that minted it, to generate a URL to a small data file somewhere out on the internet. That file (technically a small JSON format file) contains the name of the item that has been ‘purchased’, a description of the item and, finally, the actual URL that links to the digital asset.
Why have I gone to these lengths to explain how NFTs work? Firstly, I think doing so makes it clear that what is actually being sold is nothing more than a glorified till receipt. A till receipt that proves you were willing to pay for something that in most regards is freely available to all.  Whilst the NFT itself is non-fungible, the asset to which it directs you is not and, to that end, NFTs create an artificial sense of scarcity.
Secondly, I think it will have come across that it’s a pretty convoluted way of doing things. You can do much, if not all, that an NFT can do in much simpler ways. British Airways and Hilton Hotels have been offering privileged access to their lounges and the like for three decades or more with not an NFT in sight. Eventbrite and Ticketmaster have been granting VIP access to concerts and backstage access for years.
But my issues with NFTs don’t end there. With its total reliance on crypto technology, possession of the digital keys is instrumental if you are to derive any value from the purchase in the future. Lose access to your digital wallet and you have likely lost every NFT you have purchased. Ask the chap in Newport how it feels to know that the keys to your prized crypto possessions are on a hard disk, buried somewhere in the middle of a landfill site…
“As it happens, a smart contract is neither particularly smart, nor a contract.”
Compounding this technology risk, there is no one standard for NFTs. There are literally hundreds of NFT marketplaces, and they all adopt slightly different approaches and use different underlying platforms. Many rely on the Ethereum blockchain, but not all.
The long-term viability of the underlying technology is critical if the buyer is to derive value in the future. Whilst they may still have access to the digital asset, as set out earlier, the value lies in the provenance provided by the blockchain-based receipt. If that blockchain ceases to exist, the value in the NFT disappears with it.
If these technology risks are managed, a further cause for concern is that trading in NFTs requires the buyer to embrace cryptocurrencies. As well as exposing them to all the price volatility risk that this entails, it is potentially discriminatory in that it denies access to those of lower economic standing.
These things in combination cause me to question whether this is the right way to engage with and monetise a loyal fanbase. The NFT landscape is a complex place with a great deal of marketing spin and hyperbole. If you are thinking about getting on board with NFTs, are you doing it for the right reasons, and have you thought through the long-term implications for your brand and for your fans? Or are you being played by big money backers that are desperate for their NFT platform to succeed?
You see, as I covered in my Blockchain piece in the last issue, the ideological objective of removing the middleman is a fiction; your average creator has no more chance of creating a smart contract and uploading it to a Blockchain than flapping their arms and flying.
There is a reason that marketplace platforms like OpenSea and SuperRare have risen to prominence. Someone needs to be there with the tools and templates to make it all happen. Middlemen they are, and they charge a fee for their services, just like traditional third-party service providers. Becoming established as one of the leading platforms is a high-stakes game with some very big players. Are creators being used as cannon fodder in this game?
“NFTs have become a multi-billion dollar thing and there are invested interests with loud voices.”
But above all, my issue with NFTs is that in the rush to jump on the bandwagon, the ‘creative’ space has become littered with people generating art and music with little to no effort – throwing random datasets at artificial intelligence routines and leaving them to come up with whatever.
This pains me, as it fundamentally devalues the creative process. When Geraint Thomas recently tried to launch an NFT of computer-generated art based on the power data from some of his biggest career wins, he was met with general derision from his fanbase and the wider cycling community. I fear not all fan bases are so clear in their feedback and get duped by those seeking to make a quick buck. I personally don’t think that’s a good look for the music industry.
Don’t get me wrong, I know that monetising talent in this overcrowded digital world is difficult. And there are many aspects of NFTs that I find intellectually stimulating. If the buyer of an NFT genuinely understands what they are buying, and the risks they are taking, then who am I to question whether or not there is real value in what they have purchased.
I can question all I like why someone would pay potentially millions of dollars for a glorified till receipt that gets you access to the very same item that the rest of the world can have for free. But is this any different from a collector spending hundreds of thousands of pounds on a designer brand Swiss chronometer that will likely have cost only a few hundred pounds to manufacture and tells the time no better than a £5 digital watch?
The reality is that the value of something is not a matter of fact. An item is worth what someone is willing to pay for it. As people spend more of their lives in digital worlds, perhaps it does make more sense to have a digital bragging token than a fancy car or watch that very few will ever see. In closing, and to quote my own bit of Latin, perhaps the real answer to all of this is simply caveat emptor.

This article originally appeared in the latest (Q3/Q4 2022) issue of MBW’s premium quarterly publication, Music Business UK, which is out now.
MBUK is available via an annual subscription through here.
All physical subscribers will receive a complimentary digital edition with each issue.Music Business Worldwide
The best of MBW, plus the most important music biz stories on the web. Delivered for FREE, direct to your inbox each day.

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Marvion Signs Memorandum of Understanding with 8SIAN to Collaborate in Marvion Metaverse – StreetInsider.com

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StreetInsider.com Top Tickers, 11/18/2022
SINGAPORE, Nov. 17, 2022 /PRNewswire/ — Metaverse Blockchain company Marvion, a fully owned subsidiary of Bonanza Goldfields Corp. (OTC: BONZ), is pleased to share that a memorandum of understanding has been signed with 8SIAN to collaborate in Marvion Metaverse.
Commenting on the collaboration, Raymond Chua, CEO of Marvion said, “We welcome 8SIAN as a valuable partner of Marvion and into our Marvion Metaverse. As part of the agreement, we will be giving 8SIAN a building in the Marvion Metaverse and this building will be permanently available in the Metaverse from the date of completion. From Marvion’s point of view, we strongly believe that Web 3.0 is the future of brands. By existing in the Metaverse, brands can better understand their target customers’ behaviour and buying patterns through AI algorithms, something which is challenging to accomplish with a physical shop front. With the rise of e-commerce due to Covid, brands have now learnt to reach out to their customer base on the Internet which transcends physical and geographical boundaries and suffice to say, 8SIAN is well ahead of its peers in the industry with its forward-looking vision.”
Echoing the same sentiments, Nicole Yap, Founder of 8SIAN added, “Our team is committed to integrating 8SIAN into the Web 3.0 space, bringing Asian culture into the Metaverse – which we believe is the inevitable future. Our goals are aligned with Marvion’s as we envision 8SIAN being a global, inclusive community that brings together members who share an admiration for Asian culture in the NFT space. We want to represent, educate and build a lasting presence in the Web 3.0 ecosystem as we work to expand our 50,000 strong community through collaborations with key partners in various industries. With 8SIAN’s building in Marvion’s Metaverse, we are excited to have immediate access to more than 55 million average daily users on Roblox, of which the Marvion Metaverse is built on.”
For more information on Marvion and its metaverse offerings, please visit www.marvion.media.
For media queries, please contact:[email protected]
About 8SIAN
8SIAN is a Web3 brand that aims to represent Asia in the Web3 space whilst also empowering Asians to be proud of their heritage, culture and upbringing. 8SIAN strives to share their experience of NFTs and educate individuals by giving them the knowledge they need to operate in this new and exciting space. They also aim to bridge the gap between the physical and virtual worlds by expanding their community and through collaborations with key partners in various industries.
For 8SIAN’s first main collection, their aim was to create elegant, Asian female drawings that represented the unique characteristics and traits of women across Asia. One of their core visions is to be able to combine cultures from Asia and create something authentic. Every individual NFT in their collection speaks for itself in terms of quality and each one has a unique cultural background and story to tell.
Find out more about 8SIAN:Website:          www.8sian.ioLinktree:          https://linktr.ee/8siannft
About BONZ
Bonanza Goldfields Corporation is a Nevada holding company that through its subsidiaries are engaged in the media distribution business. Specifically, they provide authentication, valuation and certification (“AVC”) service, sale and purchase, hire purchase, financing, custody, security and exhibition (“CSE”) services to buyers of movie and music media through traditional channels as well as through leveraging blockchain technology through the creation of digital ownership tokens (“DOTs”).
The group is building an ecosystem and a metaverse for the media and entertainment industry that implements and adopts blockchain and NFT technologies, through mergers and acquisitions.
About Marvion™️
Marvion is a metaverse technology company in the lifestyle and entertainment industry. Although most lifestyle and entertainment content are digital in nature today, they exist in the real world as intangible assets, such as intellectual property, licenses and contractual rights, with intrinsic value. Marvion applies blockchain and NFT technologies as tools to disrupt and improve the existing and current practices. The technology underpinning NFTs (non-fungible tokens) has multiple functional use cases, some of which have the power to transform our societies, and some of which may be subject to regulations. Marvion uses NFT technology solely to create a legally-binding digital ownership token (DOT) to both tangible and intangible lifestyle and entertainment assets, which our analysis suggests would functionally fall outside any regulatory perimeter.
More Information about Marvion™️:
Website:           www.marvion.media  Facebook:        www.facebook.com/marvionmetaverse  Instagram:        www.instagram.com/marvion.media  Twitter:             www.twitter.com/marvion_media LinkedIn:          www.linkedin.com/company/marvion Telegram:        www.t.me/marvion_media
About Marvion’s DOT
Marvion’s DOTs are integrated, best in class, digital ownership token (DOT) that contains a smart contract that can execute transactions and also contains the specific legal terms of the intellectual property ownership, license and/or rights. Each DOT contains the following:
Cision View original content:https://www.prnewswire.com/news-releases/marvion-signs-memorandum-of-understanding-with-8sian-to-collaborate-in-marvion-metaverse-301681292.html
SOURCE Bonanza Goldfields Corp.
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