While that's good for brands' bottom lines, it leave fans in the cold, literally. 'Drops' from retailers can create queues thousands long, with some even leading to violence. Not just that, the value of those limited edition items on the open-market can often be ten times that of the retail price. But blockchain may have the solution.
NYC-based startup 55 is planning on using crypto tokens to peg collectible streetwear to its drop price. The startup uses the ethereum blockchain, and creates specific tokens for each item. Those tokens are sold before the drop, establishing how much interest there is in a particular item, and then 55 goes out and acquires that item on drop day. Once the items are acquired, 55 offers ownership of that item to those that purchased tokens.
We sat down with Geoff Shearer, director of global marketing at 55.com to find out more about how it works.