This Platform Lets You Trade Sneakers Without Actually Having Them
Sneaker resale marketplace StockX is initiating a service that allows users to trade sneakers without ever taking possession of them by launching non-fungible tokens (NFTs) tied to physical products. The service, Vault NFTs, allows traders to buy and sell collectible items without the need to physically ship or possess them.
StockX believes that physical products like sneakers and NFTs can intertwine together - where both are created and released in limited edition 'drops', are highly desirable and collectible, and fluctuate in value according to demand.
"Today, we're launching Vault NFTs, an experience where our customers can invest in NFTs tied to physical products and trade them instantly with lower fees", said Scott Cutlet, StockX Chief Executive.
Vault NFTs makes use of non-fungible tokens tied to physical products that sneaker traders can buy and sell instantly using blockchain technology to ensure authenticity. Buyers will be able to own the token alongside the corresponding sneakers and may opt to have them delivered at any time. This concept works as all products will be warehoused in one place until final delivery to eliminate extra shipping costs and transit times that would otherwise delay transactions for several days.
With the intention of merging the physical and digital worlds of collecting, StockX believes its platform can provide the same ease of transaction and guarantees authenticity while speeding up the process of trading without additional costs of transport or storage.
For traders who wish to acquire sneakers and other items as a liquid, abstract investment similar to stocks and shares rather than a tangible fashion item, the model could be highly attractive. The buyer of a StockX Vault NFT will also own the corresponding physical item including the opportunity to take possession of it at any time.
"The physical products tied to Vault NFTs are stored in our own secure, climate-controlled facility. Each Vault NFT edition is uniquely serialised to an authenticated product in our Vault, as a title of ownership."
According to Cutlet, Vault NFTs will help unlock new trading opportunities, reimagining what is possible when it comes to investing in current culture on StockX. By bridging the physical and digital worlds, StockX will be able to provide a more efficient trading experience anchored by lower costs and storage capabilities - where a buyer no longer has to wait several days before they can resell a product, and they don't have to pay the fees associated with multiple legs of shipping and physical authentication.
Alternative asset marketplaces for everything from sports collectibles to fine art are facing new competition from digital upstarts that incorporate tokens for trading tangible goods. In sneakers, fully digital items are starting to attract interest, with brands like Adidas profiting off millions of dollars in NFTs, and Nike Inc. acquiring RTFKT.