Fashion Brands Score With NFTs, But Market Trends Show Threats Abound – Fin Tech
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According to a recent report, iconic fashion brands from
ready-to-wear sportswear to haute couture have been reaping the
financial rewards of their bespoke NFT (non-fungible token)
collections. Reportedly, the top fashion NFT drops have
collectively generated $260 million in sales since December 2021,
with the top drops generating more than $185 million in revenue
alone.
With millions of dollars in sales, the NFT market is a prime
target for financial crimes, including money laundering, terrorist
financing and scams, according to a recent report by blockchain
analytics provider Elliptic. Key takeaways from their
report’s findings: (i) Over $50.6 million worth of NFTs have
been publicly reported stolen in the past year; (ii) sanctioned
entities pose a growing threat; and (iii) since 2017, NFT-based
platforms have reportedly facilitated the laundering of over $8
million in illicit funds. Despite these startling statistics,
Elliptic concluded that “the perceived chances of NFT-based
crime occurring is higher than it actually is” and “the
true instances of these crimes account for a small proportion of
NFT-related trade.”
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