With tens of thousands of crypto tokens available, along with new tokens being created and listed everyday, it may be hard to discover gems and separate the noise from the signal.
At Chain Debrief, other than aiming to be the go to resource hub for crypto and blockchains, we want to help surface hidden gems so that more people can find out about what they do.
LUKSO, a crypto protocol involved in the NFT space, might be the next crypto to grow exponentially.
What is LUKSO?
According to the website, LUKSO is a blockchain infrastructure that provides a series of standards and solutions for physical and digital consumer goods.
With LUKSO, brands can determine the distribution of wealth and influence in lifestyle, have a common public profile, create digital identities and certificates, and build a tokenized community. LUKSO’s goal is to create a new set of applications, focusing on fashion, games, creativity and life cases.
One area that is enabled by LUKSO is in the realm of digital-only clothing that is worn exclusively on photos or videos on-line and emotionally almost as satisfying as physical garments.
This is already made into a reality by The Fabricant, the first digital-only fashion house based in Amsterdam. LUKSO then powers the fashion NFTs behind these fashion pieces.
According to co-founder Hernandez de Vongelsteller, a new wave of economies are being created around blockchain, catering to consumers “who don’t just want to buy products.”
“They want to buy immersive experiences. Instead of simply owning products, they want their purchases to give them access to communities,” said Vongelsteller.
With its decentralized and transparent ecosystem, LUKSO makes it possible to create digital lives for real-life products.
Beyond just that, LUKSO is working on an universal profile website with new features. The fully owned, pseudonymous profiles created on the network are universal logins across applications built on LUKSO.
With the website, users have control over their digital profiles and the attached reputations they’ve accrued over time.
“The universal profile is a gateway for designers and fashion houses to register on the blockchain,” Vogelsteller told Forbes.
“It will be the first time ordinary users can talk to the blockchain. Before, it was highly technical and cumbersome.”
Here are some reasons why LUKSO might be a undervalued token to hold.
1. The NFT space is exploding now
The NFT space is blowing up now with projects such as Cryptopunk and BAYC finding huge commercial success. With NFTs, crypto users are able to gain access and be part of a digital community.
Beyond just that, NFTs are also used as a digital flex for crypto users, symbolizing their status in an anonymous world. Over the past few months, OpenSea, the world’s largest NFT marketplace, saw transaction volume peaking at $3.4 billion worth of transaction in August, 10 times the month before. As more and more people discover the allure of NFTs, LUKSO is in a good space to capitalize the NFT hype.
2. The shift from JPEG to new forms of NFTs
Current NFT projects are mostly characterized by JPEG NFTs which are randomly generated collections of NFT with different traits rarity.
As there are tens of thousands of these NFT collections, NFT collectors are looking for new innovations in the NFT space — collections that are not just limited to animals or characters.
LUKSO is powering the fashion NFT category where fashion labels around the world can launch their fashion designs or products as NFTs and sell them via the LUKSO network.
While there are not a lot of fashion NFTs yet, when innovation catches up, LUKSO will be there to capitalize it.
Beyond just fashion, LUKSO also enables brands to create digital communities. For example, it worked with Fanzone to launch digital trading cards, fantasy football, and interactive memorabilia.
3. ERC-20 co-founder and a heavyweight board of advisors
Perhaps the strongest catalyst for LUKSO is that it is cofounded by Fabian Vogelsteller, who is also the author of the ERC-20 protocol. ERC-20 is currently the main standard used for creating and issuing smart contracts on the Ethereum blockchain.
In addition, Fabian is also responsible for some other renowned open-source projects, like Ethereum’s first decentralized web3 browser Mist, Ethereum wallet, and web3.js library, the most used developer tool in the Blockchain community.
Lukso is also backed by a strong board of advisors, including:
- Daniel Heaf — Nike Vice President of Digital
- Dr. Berndt Hauptkorn — CHANEL President of Europe
- David Fischer — Highsnobiety Founder & CEO
- Caroline Drucker — Instagram Head of Strategic Partnerships EMEA
It is safe to say that the team has a strong network of contacts to help bring LUKSO to mainstream brands.
4. Actual use cases
Some blockchains have never lived up the expectations delivered by their whitepaper, and died after launch.
Most recently, there was an auction leveraging on LUKSO technology in support of LGBTQ+ movement. The one piece digital fashion NFT, was sold for 100 ETH.
5. High Risk Reward for LUKSO
Staunch followers of LUKSO have likened buying LUKSO now as buying Ethereum when it was still in the double digits.
At the current market cap of $333 million, LUKSO falls under a mid cap coin and even if it goes up 10x to a 3 billion dollar market cap coin, it is still trading lower than Axie Infinity ($4.2 billion market cap). Chiliz, a token powering digital sports community, is trading at $1.7 billion market cap now.
Also Read: A Look At Chiliz (CHZ): The Crypto Enabling Global Sports Clubs To Engage With Fans
This article is for educational purposes and does not constitute a financial advise. Cryptocurrency is a high risk and highly volatile digital asset class. Please do your own due diligence before making any token investments.