Tiffany’s uses CryptoPunk NFTs to sell $50,000 diamond necklaces

The luxury jewelery brand Tiffany & Co. plans to sell custom pendants with diamonds and gemstones at a hefty price of $50,000 and a caveat – only CryptoPunk NFT holders can get one.

Tiffany’s unveiled its “NFTiff” collection on Sunday, exclusively for members of one of the earliest and most successful NFT communities that sparked the digital collectibles boom.

“We take NFTs to the next level,” the jeweler announced on Twitter. “Exclusively for CryptoPunks holders, NFTiff transforms your NFT into a custom pendant handcrafted by Tiffany & Co. artisans. You will also receive an additional NFT version of the pendant.”

As with other NFT collections, scarcity is a key part of Tiffany’s launch. On August 5, it will release a limited supply of 250 digital passports – which CryptoPunk holders can redeem for a custom pendant and NFT artwork inspired by the jewelry design – on a newly created website. The passes cost 30 Ethereum each, or just over $50,000 at today’s prices. Customers can purchase up to three passes, according to Tiffany’s FAQ for the launch.

If all 250 pieces are sold out, Tiffany’s will receive 7,500 ETH, currently worth over $12.5 million, and can earn even more from resale royalties.

The announcement of the pass comes after many NFT collections took a massive loss in value following May’s crypto market crash. CryptoPunks, considered a leader in the market, was no exception, and its floor price dropped over 50% that month, The Block reported. The values ​​of cryptocurrencies such as Bitcoin and Ethereum are also down significantly after reaching peaks late last year.

Tiffany’s artisan designers will customize each pendant sold using a combination of at least 30 diamonds and gemstones, the company said. The design is meant to resemble each CryptoPunk owner’s character from the famous avatar collection.

Anyone can buy an NFTiff pass as a collectible, as long as they use a wallet where they own the private keys. But only CryptoPunk holders can redeem the physical chain through coining – the process of turning a digital file into a crypto collectible or digital asset registered on the blockchain. Buyers have until August 12 to redeem their NFTs, and the physical pendants won’t be ready until early next year – according to Chain, crypto startup Tiffany’s has partnered with on the project.

The collection may seem like an odd move from one of the most prominent names in the luxury goods sector since its founding in the 1800s. Most people associate the famous jeweler with Audrey Hepburn Breakfast at Tiffany’sits iconic blue jewelry box, and largely unaffordable price tag.

But a debut NFT collection could be Tiffany’s latest move in its yearlong rebranding effort to appeal to younger shoppers. Alexandre Arnault, Tiffany’s executive vice president of product and communications, previewed the launch in April.

“Should we custom @TiffanyAndCo Cryptopunk pendant available for punk owners to order for 1 week? Can’t do 10,000 though…” Arnault asked in a Twitter survey. The idea was popular – over 80% of the 4,400 respondents answered in favor.

Chain confirmed in a press release that Arnault’s own CryptoPunk-inspired pendant, which he tweeted Pictures days before the Twitter poll, served as the inspiration for NFTiff.