What Is NFT Jewelry? Is It A Reliable Investment?

by Anthony Zhang

NFTs have a potentially endless list of applications - they’re far from being just a JPEG with a price tag. Today, NFTs exist as avatars, collectibles, artwork, music, and much more.

The latest trend in the NFT space grabbing headlines is NFT jewelry, with luxury brands like Tiffany & Co, Christie's, and Louis Vuitton, plus celebrities like Steve Aoki looking to capitalize on the burgeoning market.

But, what exactly is an NFT, and how can jewelry be made into an NFT?

In this article, we’ll answer those questions and more, including 8 jewelry NFTs and another alternative asset worth investing in.

What is an NFT?

An NFT, or non-fungible token, is a digital asset representing real-world objects like art, music, in-game items, or videos. The “non-fungible” part means it’s unique and can’t be replaced with something else, much like a one-of-a-kind trading card.

They are bought and sold online, typically with cryptocurrencies, and most are part of the Ethereum blockchain.

Although NFTs could be almost anything, much of their current hype revolves around selling digital art.

Some argue that NFTs are the next evolution of collecting fine art since the NFT can also denote ownership of a physical asset.

NFTs help to solve a problem that has long been central to digital artwork:

How do you claim ownership of something that can be endlessly recreated?

The answer might well be creating NFT art, as many NFT artwork collectors argue that you’re also paying for the artist’s labor.

There are tons of benefits for the artist as well.

Purchasing digital artwork NFTs helps prove authenticity, making their art tradable. Additionally, the artists can earn resale royalties. It also circumvents the need for gatekeepers like curators, galleries, and dealers who decide the value of the art.

And it seems to be taking off. The NFT market was valued at $41 billion in 2021, nearly the total value of the entire global fine art market.

However, there are almost limitless applications for NFTs, as demonstrated by the rising popularity of NFT jewelry.

Let’s take a closer look at what jewelry NFT is.

What Is A Jewelry NFT?

Much like buying and selling digital art, purchasing a jewelry NFT records the transaction on the blockchain, acting as a certificate of authenticity. This ensures the piece you have bought is the original and that you are the rightful owner.

NFT jewelry grew in popularity during the Covid-19 pandemic. People could buy a piece of NFT jewellery if they wanted to wear a pair of diamond earrings during Zoom meetings or to show off on Snapchat.

NFT jewelry exists in the metaverse, to be used by an avatar in virtual reality or by yourself with augmented reality.

It can also come with a real-world component - something you can wear. That way, you have a physical piece to show off and a digital twin.

Let’s take a look at some popular jewelry NFT options.

8 Unique Jewelry NFTs To Explore in 2022

There are several choices available for those wanting to invest in NFT jewelry.

1. Icecap

Jacques Voorhees, son of Erik Voorhees, the founder of cryptocurrency exchange ShapeShift, launched Icecap in 2020. The company offers investment grade diamonds through NFT technology.

Diamonds are not tradeable in the same way as gold or silver. Once you’ve bought a diamond from the jewelry store, it loses value, thanks partly to the high asking price and the lack of places to sell it.

Icecap’s Jacques Voorhees aims to solve this problem.

By creating a new type of NFT marketplace, users can trade a representation of a diamond, called Icecap Collectibles, while the physical diamonds remain in secure storage.

The Icecap Collectibles are investment grade diamonds and range between $5,000 and $15,000. The NFT represents ownership of a physical asset, ensures authenticity, and acts as an IOU. This way, the buyer can trade the NFT for the physical diamond.

2. Collab Bears

Collab Bears, founded by Audrey Schilt and David Borish (and originally drawn by Audrey Schilt herself), have teamed with prominent jeweler Neil Lane to add his own flair to the artistic designs.

500 Collab Bears NFTs will be adorned with luxury jewelry designed by Neil Lane, the rarest of which will feature every piece of jewelry he designed for the collaboration. A worthy addition to any NFT collection.

3. Chains NFT

Chains NFT is a series of 10,000 fully producible fine jewelry assets. These pieces made by NFT jeweler Chains NFT include some of the highest valued items in the CryptoJeweler ecosystem.

Each piece purchased comes with utility tiers that benefit holders depending on their tier. Some benefits include ongoing jewelry drops, exclusive discounts on physical items, and real-life luxury lifestyle and concierge events.

4. Louis Vuitton

Louis Vuitton is also getting in on the NFT market, but their NFTs are designed more like a social media profile picture than a piece of wearable jewellery.

Celebrating its 200th anniversary, the luxury brand launched Louis: The Game. The objective is to help the virtual character, Vivienne, find a 16-page manuscript. Then, players will try and collect 200 candles to celebrate the 200th anniversary.

Most notably, though, are the 30 NFTs dotted throughout the game, designed by artist Beeple. Players can only find them by playing the game and may not be sold, so think of them as free additions to your NFT collection.

5. Tiffany

In a one-off, jewelry brand Tiffany turned a CryptoPunk NFT into a rose gold and enamel pendant for its owner, the company’s vice president, Alexandre Arnault.

After minting one for Alexandre Arnault, Tiffany took this a step further by launching their NFT project called NFTiffs.

Made from 18k yellow or rose gold, these represent 250 digital passes, which CryptoPunk NFT holders may redeem and then mint to have the real version and its digital twin.

6. Ralph Lauren

Louis Vuitton isn’t the only luxury brand making a foray into NFTs. Ralph Lauren recently filed a group of trademarks to further Polo’s plans for virtual wearables.

There is no digital asset available for purchase at the moment.

However, on March 30, 2022, the label filed 9 trademark applications for virtual fashion shows, NFT-backed multimedia, virtual hotels and restaurants, and virtual clothing, footwear, accessories, and fragrances.

7. Ben Baller

Ben Baller’s real-world jewellery with a fully digital NFT.jpg

Musician, actor, and NFT jeweler Ben Baller launched an NFT project dubbed Ben Baller Did The BlockChain. The project stems from a partnership between Baller and NFT marketplace Notables.

It combines Ben Baller’s real-world jewellery with a fully digital NFT.

Once purchased, you’ll be guided through the process of minting a series of NFTs that will become increasingly rare over time.

The project extends over three phases, with the first phase turning BlockChains into Baller Bars. The second phase saw those Baller Bars turned into Gems, and the final stage sees the germs converted to BallerChains.

BallerChains are designed with utility in mind and can access future Ben Baller NFT collaborations.

8. Steve Aoki

One of the biggest celebrities in the NFT space is legendary DJ Steve Aoki. A long-time collector and creator of NFTs, he’s now looking to create a new NFT project called the Aok1VERSE.

Essentially, the Aok1VERSE is a membership community driven by Ethereum NFTs. Holders of the Aok1 Passport NFT gain exclusive access to live and virtual concerts, a private Discord server where Aoki himself is a member, and access to future metaverse events.

Now, NFT investing isn’t without its disadvantages.

3 Drawbacks of Investing in NFTs

NFTs can certainly be a good investment, offering an opportunity to buy fractionalized ownership of certain assets. The influx of luxury brands should also bring good investment down the line.

However, there are also some potential shortcomings to be aware of before investing, including:

Illiquid and volatile: The NFT market is still relatively immature, so it lacks the liquidity of the traditional investment market. NFTs are also not widely understood, so the number of potential buyers and sellers remains limited.
Environmentally unfriendly: Creating blockchain records requires a significant amount of energy. There are concerns about environmental damage, with some estimates stating that carbon emissions from mining cryptocurrencies and NFT technology will soon exceed those produced by London.
Potential to perpetuate fraud: While the immutability of blockchain technology is unquestionable, NFTs can be used to perpetuate fraud. Several artists have reported finding NFT art of their work being sold without their consent.

Yes, NFTs can be a worthwhile investment, with many investors making six figures almost overnight.

But, you likely won’t experience those gains immediately.

If you want to add other profitablealternative investments to your portfolio, you should consider investing in wine.

Fine Wine: An Excellent Alternative Asset Worth Investing In

Wine offers a unique source of portfolio diversification, as it depends on factors that have little correlation to the economy's performance, interest rates, or corporate earnings.

Aside from excellent portfolio diversification, fine wine has offered great returns. In the first 6 months of 2022, fine wine returned over 11%, 2-year returns of 36.8%, and 5-year returns of 50.3%

By comparison, gold lost 4.4% in the first 6 months of 2022, 2-year returns of -2.5%, and 45.6% over the last 5 years.

In addition to being a much more accessible investment, fine wine includes much less volatility and uncertainty.

So, what’s the easiest way to invest in wine?

If fine wine sounds like something you’d like to invest in, check out Vinovest. Vinovest is a reputable wine investment company that can make adding these potentially lucrative investments to your portfolio a breeze.

What’s more, with Vinovest, you don’t need to be a master sommelier or have decades of wine knowledge. The platform handles authentication, storage, and insurance, making it easier than ever to add some of the world’s most sought-after bottles to your collection.