What’s going on with physically-backed NFTs?

This is a continuation from my previous article on physically-backed NFTs. In this article, I’ll dive into the specifics highlighting unique platforms and marketplaces where physically-backed NFTs can be accessed and notable examples of how physically-backed NFTs are taking shape across various markets like; collectibles, real estate, fashion, automotive, and luxury goods.

What are the most common types of Physically-backed NFT?

Physically-backed NFTs are still relatively nascent and the market is still in early stages so comprehensive data is limited. For now, broad public participation remains relatively small, but interest is growing as the NFT market enters the next phase in its maturity. Some notable physically-backed NFT project issued today include:

Collectibles

Comic books

• Nouns Comics - Popular NFT project Nouns collaboration with ComicsDAO. The comic book series will go to print in Q1 of 2024.

Toys

• SUPERPLASTIC: SUPERGUCCI - collaboration between Gucci and Superplastic. An exclusive 8-inch tall ceramic SUPERGUCCI sculpture, hand-crafted by ceramicists in Italy. Only 500 NFTs were minted for each drop.

Coins

• Casascius physical bitcoins - Casascius coins are available in 1, 10, 25, 100, and 1000 BTC increments. They are essentially physical Bitcoins and can no longer be purchased. The coins are designed such that they could be circulated in face-to-face transactions. Can be traded on 4K.com.

Luxury Liquor

• Ape with Friends - Bored Ape NFT holders can mint and redeem a 1/100 Monkey Shoulder x Bored Ape, 700ml Blended Malt Scotch Whisky on Blockbar.
  

• Château Angélus Bell - Château Angélus in collaboration with Cult Wines. Auctioned an entire barrel of Angélus 2020 and a digital artwork of the St-Emilion estate’s famous golden bells for $110k in 2021 on Open Sea.

Real Estate

Fractional ownership in properties

• RealT - Specializes in tokenizing real estate through fractionalized NFTs. Giving investors around the world access to the US real-estate market through fully-compliant, fractional, tokenized ownership.

Buildings and Homes

• Propy (previously Roofstock) - Credited with launching the first real estate NFT. Propy was built with the vision to automate the real estate sales process. Automating the closing process for all real estate purchase participants to make closing faster, easier and more secure.

Fashion 

Digital fashion

• RIMOWA - This collection of NFTs have already been redeemed for IRL luggages, so do not purchase if you want to redeem for the real thing.

• Prada Timecapsule - Launched for the first time on December 5, 2019, Prada Timecapsule is a monthly online event. For 24 hours, each first Thursday, an exclusive item which forms part of this collection is made available on prada.com in very limited quantities in selected markets. Each limited edition physical product will be accompanied by a gifted NFT.

Luxury handbags

• Speedy 40 by Pharrell Williams - Exclusively for VIA Treasure Trunk holders, who will have the opportunity to claim a physical twin version of the collectible in January 2024. Floor is at 15ETH on OpenSea.

  Today we launch the 1st digital collectible designed by @Pharrell for Louis Vuitton👇

  (1/6)

  — metaversboi 🫡 (@metaversboi)
  3:36 PM • Jul 17, 2023

Shoes

• Dior B33 sneaker - Released on July 6 in a limited run of only 470 pairs. Each shoe pair will cost $1,350. The sole in the right shoe contains an NFC chip which is associated with an encrypted key that leads holders to what Dior describes as a personalized, secure online platform that offers digital certificates of authenticity for each shoe owner, as well as other dedicated services that have yet to be revealed.
  

  Sneakers Alert.
  Introducing 'B33' sneakers by Kim Jones, from the #DiorMenFall 2023 collection. Each pair is equipped with an encrypted key granting access to a secure platform and exclusive services. Sign up to be the first to shop them online from July 6.

  — Dior (@Dior)
  8:00 PM • Jun 29, 2023

Apparel

• MNTGE - dropped NFTs can be redeemed for patches from the likes of Jen Stark and OSF, along with Nyan Cat and Bored Ape Yacht Club artists.

Automotive

• Lamborghini Avenador - Auctioned for $1.6m by Sotheby’s this is the world’s first one-of-one NFT ever to be auctioned with a physical super sports car. Artwork by Krista Kim and Steve Aoki created the bespoke track that accompanies the NFT.

Timepieces 

Rolex

• Rolex filed a patent which suggests they plan to introduce NFTs, NFT-backed media, NFT marketplace, virtual goods auctions, as well as an exchange. In the meantime, you can use 4k.com to mint an NFT backed by your own Rolex.

Trading Platforms

• RTFKT
  Founded in 2020, RTFKT uses the latest in game engines, NFT, blockchain authentication and augmented reality, with manufacturing expertise to create one of a kind sneakers and digital artifacts that combine the digital and physical world.
  
  They are known for 3D art, music, fashion, film, gaming and virtual spaces. Launching community led viral sneaker designs, digital collectibles, 3D & AR wearables, unique avatars and original art.
  

• 4K Protocol
  They are focussed on physically-backed NFTs and are the first decentralized protocol for bringing physical assets on-chain. The 4K Protocol coordinates a global network of physical vaults (Guardians), service providers (appraisers, authenticators and auditors), and on-chain mechanisms, to safely and securely bridge the physical and digital worlds.
  

• OpenSea
  The first and largest marketplace for NFTs. Over $20B of trading volume since they were founded in 2017, over 2M collections and 80M NFTs. OpenSea is one of the most trusted platforms in the industry.
  

• BlockBar
  Luxury Liquor trading platform that offers an exchange to trade physically-backed NFTs which can be redeemed. In simple terms, consumers own the physical bottle, BlockBar stores it for them, and the NFT serves as proof of authenticity, verification of ownership, and the right to have the physical bottle delivered.
  

• Mattereum
  Through their Universal Bridge, Mattereum has the ability to bind a smart object to legal contracts which means they can connect physical property and associated property rights to the blockchain.
  
  Coupled with Mattereum Asset Passports (MAPs) it forms the final part of the legally binding bridge between the object, its legal status and related contractual obligations, and the blockchain. This allows trusted trade in any kind of object and in addition allows objects to be bought and sold as NFTs without the need to physically transfer the item.
  

• Beatport
  next-generation platform dedicated to exploring the future of electronic music. A place where your favourite artists and labels can experiment with new forms of creative expression and music formats. Your opportunity to collect unique pieces of art that shape the culture that drives us.

What next?

In light of the prolonged contraction in the NFT market, those who survive the winter and are still building and pushing the boundaries of what this technology offers will be well positioned when the macro climate becomes more favourable again.

The active user base interfacing with physical tokenization services is currently small compared to the overall NFT market, but given the utility, transparency and global advantages they provide. The market for physically-backed NFTs could grow substantially in the next few years.

For now, if you’re curious about physically-backed NFTs and how you can take part. I’d encourage you to get hands on with the platforms and purchase NFTs.

Knowledge is key when it comes to finding an edge in crypto and if you’re already learning about this technology now, then you’ll be ahead by the time everyone else figures it out.