For a growing list of jewelers, NFTs add utility and a splash of publicity – JCK
For some, the most dreaded acronym that the jewelry world can be is this: NFT. Just seeing the three small letters together brings up feelings of dread, confusion and, in some cases, worry that a jeweler or designer might be missing something.
Avoiding NFT FOMO may be easier than the industry might expect if you look at three recent examples of how jewelry brands are approaching non-fungible tokens. Each of them is specific to the brand’s overall goals, but they all have one thing in common: The jeweler or designer in question wanted to be at the forefront of a trend that is quickly becoming a long-term game.
In the case of artist and newly minted jewelry designer Angie Crabtree, NFT is an experiment to see if offering this object in addition to her art and a rather stunning diamond could help her make a significant donation to a cause close to her heart .
For Clear Cut, NFT seeks to use this tool for utility and a touch of sentimentality—the goal is to “launch the next generation of blockchain security for your diamond jewelry,” the company says.
For Tiffany & Co. the luxury jeweler probably wanted to make a big splash in the NFT world with its NFTiffs, and it certainly achieved that goal. The limited edition sold out in less than 30 minutes after launch and brought in more than $12 million for the specialty retailer.
Whether jewelry buyers will see NFTs as practical or a trendy addition remains to be seen.
“I think a lot of other NFT offerings that are starting to happen in the jewelry industry are fun and exciting, but they may not be as practical or stand the test of time,” says Olivia Landau, founder and CEO of Clear Cut. “Our NFT offers the only practical use in the luxury jewelry market today.”
Angie Crabtree
For the first time, artist Angie Crabtree is selling what some might call the triple play in the diamond world. She has put together a set of three items for purchase through August 31: a rare, 10.1-carat pear-shaped diamond, a three-foot-tall painted portrait of said diamond, and an NFT of that diamond.
If this set of three sells for $1 million, Crabtree will donate $22,222 of the proceeds to Los Angeles Children’s Hospital. Crabtree says she chose this organization in part because she wants to support organizations that contribute to children’s health services for two reasons. Firstly, at the age of 12 she was diagnosed with juvenile diabetes, so she knows how important health care is. Second, as a former high school art teacher, she wants to take care of the children and their health.
Crabtree says she’s experimenting with NFTs in her art, creating some for her latest art exhibit and as part of her new jewelry line.
“In the future, I want to pair more NFTs with gems,” says Crabtree. “I like the idea of selling things in sets of three. It’s a big investment, so it would be cool to have all three items on display.”
The clear cut
In collaboration with partner Authentic, Clear Cut launched its diamond ring NFT in June, which gives customers a digital overview of the diamond’s GIA report, insurance documents, sentimental photos and videos related to the making of their ring – all encrypted for privacy and security, says Landau.
This NFT serves the purpose of preserving documents, but it also preserves stories, says Landau, who is also a GIA-certified gemologist. Having your proposal history on the blockchain ensures that history can be passed down through generations.
Clear Cut’s process makes NFT purchases easy for customers. Clients get the option to add an NFT when they buy the ring for $500 or later at the same price, says Landau. Existing engagement ring customers will also have this option. In the beta testing phase, more than 90% of Clear Cut’s clients said they were interested in this new NFT feature, she says.
Tiffany & Co.
In July, Tiffany & Co. announced on Twitter: “The future is here and it’s called NFTiff.” Working with CryptoPunk, Tiffany said the collectible passes could be redeemed for a custom pendant and digital NFT artwork that resembled the final jewelry design. The collection of 250 digital passports known as NFTiffs went on pre-sale on August 3 and sold out at a price of 30 ETH. All sales were final.
The accompanying Tiffany pendant was customized for the NFT buyer, the company said. It can be made of 18k rose or yellow gold and will contain at least 30 precious stones. A rendering of the custom pendant will be available by October; the physical jewelry won’t be ready to ship until 2023, the company said.
Industry analysts and NFT experts were mixed in their reactions to Tiffany’s offering, especially given how NFT prices and consumer acceptance of these types of technologies are across the board. The large investment also calls into question whether this kind of exclusivity should be encouraged or is good for the industry as a whole.
Ultimately, some personal finance experts say people should generally consider NFTs as a flex, as the kids say — it’s a way to boost your social media status if you mention it in your profile. It’s an alternative investment if you want to be like Elon Musk. It can also be a way to get on top of a pop culture phenomenon. Either way, it’s interesting, and with brands like Gucci, Sotheby’s and Tiffany involved, it’s probably here to stay.
Top: For Clear Cuts founder and CEO Olivia Landau, NFTs are a way to add value and utility to a jewelry purchase. The company offers NFTs with its engagement rings as a way for its customers to store GIA information as well as stories about how the proposal happened (photo courtesy of Clear Cut).
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