The status quo in the collecting world has been upended by the exploding popularity of NFTs. Whether you’re an avid tech-head, watch enthusiast, or just an innocent bystander, you’ve probably heard some impressive reports about the dizzying heights NFTs have reached in recent years. Digital artwork, avatars, and virtual real estate on metaverse platforms have a strong foothold in this polarizing industry. But what does this quintessentially modern phenomenon have to do with the traditional world of watchmaking?
NFTs in a Nutshell
Let’s start with a quick recap: In layman’s terms, a non-fungible token (NFT) is a unique unit of data stored on the blockchain. The token is connected to either a digital or physical item and an irrefutable certificate of ownership. NFTs cannot be copied, but they can be traded just like any other collectible. By now, few markets have been left unscathed by the NFT hype – even Taco Bell hopped on the bandwagon in 2021 with taco-themed GIFs.
The First Luxury Watch NFT
Exclusivity is one of the major selling points of both NFTs and luxury watches, so it’s not all that surprising to see these two starkly different industries collide. The pioneering step in luxury watch NFTs was taken by Jacob & Co., a profoundly innovative watchmaker and jeweler located in New York City. The brand is renowned among A-listers for their extravagant complications and extraordinary designs. Take Floyd Mayweather, for example, who dropped no less than $18 million on his Billionaire model, set with 260 carats of emerald-cut diamonds, once again defeating Conor McGregor, whose Astronomia Baguette Tourbillon “only” set him back $1 million.
Jacob & Co. put the watchmaking world on the NFT map in 2021 with a tokenized version of their SF24 Tourbillon. This “digital” timepiece fetched an impressive $100,000 at auction, albeit after a few false starts, and boasts a couple of quirks. Firstly, the watch’s ties to the crypto world are flaunted via a functional split-flap system, which shows ten different cryptocurrencies instead of the local time in various cities seen on the physical version. Secondly, you can’t actually read the time from Jacob & Co.’s creation: the NFT is merely a ten-second animation.
What’s the appeal?
So, if anyone can look at these digital artworks, why buy one? Beyond the driving factors of exclusivity and collectability, those who purchase such digital items usually also get tangible, real-life benefits. For example, the owner of the Jacob & Co. NFT SF24 Tourbillon was reportedly offered a tour of the manufacturer’s facility in Geneva, a private dinner with the company’s founder, and the chance to contribute to the design of their next NFT collection, which has since been released. Naturally, people are also turning to digital tokens as a form of investment, and although there’s no telling whether the NFT craze will continue, artificial scarcity is a tried-and-true marketing ploy.
Tradition Meets High-Tech
With the precedent already set, will we see more traditional watchmaking brands throw their hats into the ring? Hublot, whose attempt to test the waters with a digital photograph of the Bigger Bang All Black Tourbillon Chronograph failed to meet its reserve price, released a duo of NFTs in collaboration with Japanese designer Takashi Murakami. Every Breitling watch comes with its own NFT, suggesting that NFTs might soon be the way forward when it comes to proof of ownership and may even replace the original papers coveted on the gray market. TAG Heuer, on the other hand, are taking a different approach: rather than releasing their own NFTs, they’re making it possible for people to display their NFT artwork on their wrist with the Connected Calibre E4.
These brands want to crack into a community that will bring the company success in experimental ventures and, of course, capitalize on the hype. We haven’t seen industry giant Rolex join the ranks yet, but that’s not to say that the brand with the crown isn’t represented on the NFT market: The artist behind Gen Watch creates NFT watches inspired by iconic collector’s items like the Rolex Daytona and Rolex Submariner, giving them clever names playing on the cryptocurrency connection such as the “Rødex Bitmariner.”
Is the future non-fungible?
NFTs harness the power of scarcity and exclusivity. They make collectors feel more involved with the brand, who themselves want to stay relevant in the age of digitalization. But will this be another passing fad? Can anything live up to the charm and magic of a trusty mechanical watch with fascinating complications, which have already stood the test of time? Could receiving an NFT with your purchase become the watch industry standard? All we can do right now is speculate – especially after the crypto market crash last summer – but interest seems to be relatively stable at this point.
