Challenging Tiffany & Co. and what could be the most expensive public sale in NFT history

Are diamonds an NFT holder’s best friend? The answer may be yes for a few hundred CryptoPunks holders, and it may soon be the same for thousands of others.

Tiffany & Co., the well-known luxury jeweler and specialty retailer, made a lavish entry into the NFT space this month, bringing in more than $12.5 million from its first NFT collection, which sold out less than 30 minutes after launch. Limited to a supply of 250, the exclusive collection is the fruit of a partnership between Tiffany and Chain, a blockchain software development company.

Tiffany first announced its unique NFT collection in early August. Called NFTiff, every purchase of 30 ETH gives buyers a Tiffany pendant of a CryptoPunk in their collection and a digital version that replicates the physical design.

The luxury brand said each custom, one-of-a-kind pendant would be crafted from 18k rose or yellow gold with at least 30 gemstones. Jewelers will color match the enamel and gemstones to mimic the virtual hues of punk. Anyone can purchase an NFTiff, but only CryptoPunk holders have the opportunity to embark on the custom jewelry experience.

Tiffany noted that renderings of the pendants would be ready by October, with the physical jewelry heading to owners by mail in 2023. The unique foray into the NFT world is made possible through CryptoPunk owners “leveraging their IP rights” and not involving directly CryptoPunks or parent company Larva Labs.

Global fashion brands continue to dive into the world of NFTs

Not surprisingly, the news sparked a lot of opinion. Some expressed excitement that a luxury jewelry brand was targeting affluent buyers with an exclusive product. Others wondered about the timing amid Ether’s continued price slide and moves by NFT creators to lower asking prices.

On August 1st, CryptoPunk trading volume increased by 1,847% in a 24-hour period, apparently related to Tiffany’s announcement of its exclusive NFT collection.

Tiffany’s announcement adds the famous retailer to a growing list of fashion-based brands engaging in NFTs and Web3. Adidas teamed up with Bored Ape Yacht Club for an NFT project focused on digital garments, while Gucci has worked with the SuperRare market on a few NFT collaborations so far.

Many wonder if Tiffany’s move into the NFT world represents a new frontier for jewelry collecting. A press release from the jeweler highlights how Vice President Alexander Arnault helped inspire the collaboration with Chain after posting his own custom Punk pendant earlier in 2022.

Chairman Bernard Arnault mused on Web3 in January and explained how to use the metaverse and NFTs, “…can undoubtedly have a positive impact – if well done – on the activity of the brands, but it is not our goal to sell virtual sneakers at €10. We are not interested in that.”

Tiffany’s move remains unique in the NFT world. It has an air of exclusivity, with NFT’s starting price and the brand behind it not really seen before.

The thinking is that crypto whales will highly covet NFTiff as buyers will receive both an NFT and a custom Tiffany piece.

Is a new era approaching for jewelry collectors?

After Tiffany & Co. quickly sold out of its limited collection, other brands may be wondering what they can take from the huge success. This has been top of mind for artist Johnathan Schultz, but his journey into the NFT space began many months ago, long before the NFTiff launch.

Schultz is an innovative, luxury artist already known for incorporating precious metals and diamonds into his work. Understanding how high-end collectors value physical jewelry and unique digital art, Schultz is now laser-focused on integrating physical jewelry with NFTs.

Based out of Las Vegas, the South African artist and entrepreneur has gained prominence for integrating precious metals and diamonds into his work and for pioneering new applications of both in larger projects. One way is through GemSet NFTs. According to the project, each NFT in GemSet’s 10K Generative collection is associated with a diamond, which underpins each NFT to incorporate real-world elements of Schultz’s art into the digital collection.

Before GemSet, Schultz spent a lot of time giving back to the community. Schultz has been involved in a number of charitable events, including with Ride2Revive, an organization that helps children with life-threatening illnesses. Schultz also donated an exclusive $150,000 multi-layered gold basketball to help fund Hennessy’s ‘Unfinished Business,’ a non-profit organization that provides relief and support to small business owners.

Currently at GemSet, team members are building an artist launchpad to solicit funding applications for creatives looking to kick-start their careers. Artists who are holders of the Gem NFT will also have the opportunity to study under Schultz and succeed in the commercial art world. The GemSet mint date and price have yet to be set, but those interested in the project can visit the official website, Twitter and Instagram for more details and updates.