LuxFi Unleashes The True Value of Luxury Assets
LuxFi is here to release the true value of the luxury market. In recent years, the luxury goods market has grown at a rapid pace and it’s one of the most dynamic sectors of the economy. It’s a very exciting time for the luxury industry, but this renewed attention has uncovered some problems in it.
These challenges are threatening the continued expansion of the luxury market. It is also generating distrust among the public and investors. LuxFi is here to address those challenges and transform the luxury market.
The Challenges in the Luxury Industry
There are several challenges stopping the growth in the luxury market. Many of them cannot be solved with legacy technology and are creating bottlenecks. If these cannot be resolved, the entire industry may grind to a halt destroying all the progress that has been made. Some of these challenges are:
- Counterfeit goods. One of the biggest problems for luxury goods is counterfeits. There are thousands in the market and in some places there are more of these duplicates than original items. This has created a lot of mistrust in the market and from collectors who have to be weary of them.
This is no small issue, estimates show that the market of counterfeited goods is valued at half a trillion dollars as of 2020. Of that huge market, 70% is traded in counterfeits of luxury brands such as Louis Vuitton, Chanel, Adidas, Nike, and many others.
Sneakers, bags, and clothing are the most affected by counterfeits due to the relative ease to produce them. In second place, watches are also affected, with Rolex being the most copied brand. In February of 2021, 7,000 duplicate Rolex watches were destroyed, but it is estimated that there are 400 million counterfeit watches in the market.
The problem is so large that in 2020, Louis Vuitton had to spend 67 million dollars on lawyers. The legal team was solely focused on preventing counterfeits from entering the market and opening legal cases against the producers and exporters of the duplicated goods.
2. Fluctuation of prices and lack of pricing information. The luxury market is very opaque regarding the valuation of items and overall prices. For these reasons, sellers and buyers often don’t have the necessary information to make a purchase.
3. Illiquidity in the market. Luxury goods are traded among a few people by definition. Even if a luxury item is for sale, finding a buyer in a reasonable amount of time can be a challenge. It is too slow to convert luxury assets into cash, and traditional financing services do not accept luxury items as loan collateral as an example.
Each of these problems plague the luxury goods market. Until they are solved, the industry will be stuck and won’t grow to its true potential.
Unleashing the Power of Luxury Assets
LuxFi has identified these obstacles and has deployed the power of blockchain technology to solve them. The innovation LuxFi is bringing to the market would not be possible with other technologies, making our platform unique in the entire world. The solutions are:
- LuxFi uses NFTs to ensure the provenance of all the luxury items in our marketplace. Each item can be traced, verified, tracked all in the tamper-proof ledger of the blockchain. No longer will counterfeits slip into the luxury market.
- LuxFi uses big data to track and update the prices and valuations of the luxury goods in our marketplace. In this way, both sellers and buyers have access to verifiable data that will allow them to make the best choices.
- The LuxFi marketplace is a global and sustainable ecosystem. No longer will sellers have to wait to find the perfect buyer, and collectors will have access to open and secure offers from vendors across different countries.
The solution and technology developed by LuxFi are without precedence. The entire luxury industry will benefit by the capabilities deployed by our platform. We are solving long standing problems in the market, things will never be back to the way they used to be.
Conclusion
Counterfeits, poor market data, and lack of liquidity threatens the growth of the luxury industry. LuxFi is solving all of these problems using a multi-layer approach where NFT verification, big data, and a global live platform solve these problems.
We are unleashing the true potential of luxury goods in a fair and open way. Sellers, buyers, investors, and collectors will benefit from our technology. Join us in a once in a generation revolution!
About LuxFi
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payment methods. Leveraging on our big data intelligence system and unique algorithm for automated data collecting and data processing, we eliminate counterfeiting while minting an NFT on our multi-chain blockchain network. As we focus on luxury assets that hold value well and have a high reselling value, we also provide an accurate NFT pricing that is backed by real-world data.
Stay tuned on our social media channels:
Website: https://www.luxfi.io
Twitter: https://twitter.com/luxfiofficial
Telegram Announcement Channel: https://t.me/luxfinews
Telegram Official Group: https://t.me/Luxfiofficial
Medium: https://luxfiofficial.medium.com
