What Is LuxFi?
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets. LuxFi intends to harness the power of crypto for the betterment of luxuries, and it’s working to bring its solution worldwide.
The platform allows people to buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. It eliminates counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high reselling value.
Leveraging on their big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on their platform is backed by real-world data.
Facing the Challenges of the Luxury Industry
LuxFi improves the ever-expanding luxury ecosystem in a few key ways. First off, the platform makes luxury assets more accessible than ever before, providing an alternative purchase method that has the consumer in mind. Traditionally, buying luxury goods has a few pain points but with LuxFi, these bottlenecks are eliminated.
The luxury industry faces everyday threats like counterfeit items, liquidity shortages that stand in the way of consumers and the difficulty to evaluate the true value of luxury assets with pricing differing across different sales channels and countries. Counterfeit items contribute to various price fluctuations and a general lack of information regarding different products, which is not ideal for any party involved. NFT technology helps avoid counterfeit items through immutable identification. When a luxury item is registered on the LuxFi blockchain, its information records and trading history ensure counterfeit items have no place in the ecosystem.
Luxury Turning “Phygital”
Of course, all digital assets are represented by their physical counterparts in the real world. As an asset-backed NFT, this blend of digital and physical technology, otherwise known as “phygital,” can help create a new, more accessible and seamless experience for all. With this in mind, brands are beginning to adopt the phygital approach to sales. Utilizing a combination of online and brick-and-mortar stores, this blend of the two methods enhances the customer shopping experience in ways unlike ever seen before. With the COVID-19 pandemic causing a shortage of in-person customers, a reinvented shopping experience might save retail and brick-and-mortar stores.
Now, buyers can receive from anywhere ready-to-use and in perfect condition luxury items. After buying an asset-backed NFT on LuxFi’s marketplace, the user can choose to redeem the authenticated physical asset that is tied to its NFT through product fingerprint technology. By scanning the unique product fingerprint or anti-forgeable NFC chip in the items, buyers can view the product history and information securely stored on the blockchain. This digital approach means the customer can manage the entire experience independently rather than needing some sort of human assistance.
Both sellers and buyers find difficulties in achieving their respective goals, whether it is selling or finding the right luxury item at the right price. With the LuxFi NFT marketplace, buying, selling and investing in luxury assets has never been easier. Anyone can convert their luxury assets into NFTs, providing sellers with the opportunity to find a buyer immediately rather than circumnavigating the physical luxury world.
As you know, sought-after rare items tend to increase in value over time, as the supply is stagnant but the demand increases. Investing in the right luxury assets with a strong fan base can help increase a high-end product’s value over time, and by making the transaction progress more fluid, this becomes even more apparent. NFTs are ideal to provide a sustainable tool for traceability and verification, as the authenticated items information is permanently stored on blockchain.
Phygital is Here to Stay
The phygital model isn’t some random pipe dream, as it has already been implemented in the real world. Highstreet, a metaverse with a DeFi marketplace for NFTs, recently raised $5 million to develop their phygital product. Assets purchased on Highstreet, such as clothing, can be worn in real life as well as in-game. This phygital approach provides the ultimate level of user customization and control.
LuxFi is the latest brand to join the phygital consumer model. Thanks to product fingerprint technology, it’s easy to tie a physical item with an NFT counterpart. In offering such services, With a common goal to tackle the challenges in the luxury industry, LuxFi is working to make it a safer and more accessible place for all the leading counterparts in the industry.
$LXF – The Native Token OF LuxFi
$LXF token is the native asset of the LuxFi platform and ecosystem. Users who make use of $LXF are buying into the economic model of the LuxFi platform. As such, the token is a reflection of the state of the services provided by LuxFi. The $LXF token has multiple roles in LuxFi’s expensive ecosystem, such as:
- Staking: Stake $LXF to join tiered memberships, earn yield and win exciting asset-backed NFT mystery boxes.
- Authentication: Use $LXF to authenticate the real-world asset.
- Product Tokenization(NFT): Use $LXF to convert physical assets to NFTs and list on the marketplace.
- Redemption: Use $LXF to redeem the physical assets.
- Verification: Use $LXF to verify if the physical item is the original and authenticated asset of the NFT.
- Providing Data: Earn $LXF for providing data to enhance the data intelligence system.
- Referral Rewards: Earn $LXF by referring friends and users to the network.
- Custodian Services: Use $LXF to store the assets in local custody.
LuxFi has designed a tokenomics model where all the features of the platform reinforce the value of $LXF. This system is meant to sustain the long-term use of the token, and as the platform expands, so will the utility of the native token.