This past year has seen Web3 hype plateau and skepticism across the crypto market soar. So much so, in fact, that dappGambl’s September study reported 95 percent of non-fungible tokens (NFTs) are now deemed worthless. With rug pulls, scandals, and market crashes aplenty, successful NFT campaigns in 2023 have been few and far between.
Nevertheless, luxury brands are still betting big on digital assets as a core component in their community-building strategies. The challenge is leveraging their value enough to make them worth the investment.
Where legacy labels like Louis Vuitton and Gucci have seemingly cracked the formula and triumphed, others have flopped as a result of poor communication, oversupply outweighing demand, zero long-term potential, or too lofty ambitions too soon.
From Porsche to Adidas, below, Jing Daily rounds up the top NFT drops and flops of the year so far across fashion and luxury, and what was behind their success-slash-fall from grace.
Porsche - flop#
Setting the precedent for the year ahead, Porsche’s NFT drop back in January this year was met with widespread criticism after a series of blunders caused the collection to flop.
Following weeks of hype build-up across the automotive’s platforms, on January 23, the German manufacturer dropped its 7,500-piece NFT collection to the masses.
After two days, however, only just over 2,000 of the assets had been bought, with the project achieving an overall meager 16 percent sell-through rate. The drop also ignited widespread community backlash due to its high price point (0.911 ETH each, or approximately $1,412 at the time), lack of utility, and poor communication from Porsche.
Porsche’s error in judgment was widely documented across the crypto and luxury communities, with X (formerly Twitter) user @spvce_ ‘s post going viral following the project, in which the writer dubbed the drop “the worst Web3 project from a Web2 company.”
Adidas x Fewocious - flop#
Despite having built an impressive Web3 empire since 2021, Adidas’ rise to virtual fame hasn’t always been smooth sailing. One such project that flopped this year for the brand was its partnership alongside queer NFT artist Fewocious; the creative who crashed Christie’s auction house with their NFT collection in 2021.
Adidas, who has continually advocated for crypto artists and leaders, announced that it would be tapping Fewocious’ artistic flair in a new sneaker collection on June 13. But a week after the collaboration’s unveiling, the brand announced in its Discord channel that it was putting the collaboration with Fewocious on hold, after sexual misconduct allegations towards the artist surfaced.
Nike Dot Swoosh - top drop and flop#
Nike’s approach to its exclusive Web3 platform this year has proven that not even the king of sneakers can rest on its laurels after the brand’s NFT roadmap sparked backlash.
Following its explosive partnership with digital sneaker studio RTFKT since early 2022, Nike has tried to replicate the same success with its own Dot Swoosh membership, launched in November 2022.
But although Dot Swoosh’s debut token collection raked in over $1 million in NFT sales in May, with other drops like the Tinaj tee also selling out since, the brand’s Web3 channel has been widely criticized for its unnecessarily high price points (which skeptics have dubbed a ‘cash grab’) as well as poor communication and a below par minting system.
Christie’s x Gucci - top drop#
From gaming to NFTs, Gucci has emerged as a paragon of how luxury houses can fully embrace emerging tech while championing traditional values and heritage. Its collaboration with Christie’s Web3 platform, Christie’s 3.0, in June recontextualized NFTs from flippable assets into couture pieces of art.
The “Future Frequencies: Explorations in Generative Art and Fashion” auction also advocated for innovative talent that had previously been pushed to the sidelines, giving them a platform to showcase their tech-enhanced visions.
Gucci’s tie-up with auction house Christie’s proved why the maison has been so successful in cultivating a robust Web3 community. Championing next-generation artists and utilizing a reputable auctioneer is a step in the right direction of a digital art rebrand, improving the market’s reputability. Overall, the auction generated over $200,000 (92.477 ETH) even amid a bear market.
Louis Vuitton - top drop#
In June, Louis Vuitton switched up its Web3 playbook strategy with a headline breaking venture – a $41,000 NFT drop. The maison chose to innovate one of its oldest, and most emblematic, hero products for its debut by transforming its iconic Treasure Trunk into digital tokens. Keeping price points high meant the tokens were reserved for the uber-exclusive, a move that made entry into the community more covetable than ever.
Unlike short-lived token projects, Louis Vuitton announced that its Web3 platform will continue to drop two to three NFT collections for its community for at least the next three years, demonstrating the brand’s commitment to its digital playbook. Collections have already included digital Speedy 40’s designed by Pharrell WIlliams, as well as a miniature sized virtual trunk from Nicolas Ghesquière’s Spring/Summer 2024 catwalk collection.
The maison was also applauded for its decision to incorporate soul-bound tokens into the platform, meaning that owners were unable to flip or transfer their NFTs; a decision that assures better security for holders. Working closely with Aura Blockchain Consortium, the brand has managed to pivot its NFT projects away from the volatile market and cringey “crypto bro” mentality to maintain its air of luxury in Web3.