I wrote this post highlighting some use cases of VIDT NFT technology following the addition of $VIDT in Coinmarketcap’s list of NFTs.
While reading about VIDT and its NFT potential, I looked into the different sub-markets of collectibles. Below I will go through a couple of high-value sub-markets. The collectible’s space is enormous. People collect all kinds of things, from vintage toys to classic cars.
What all these sub-markets have in common is fraud. Besides collecting, many people look at collectibles to diversify their investment portfolio. A person could buy cryptocurrencies, stocks, real estate, gold and collectible baseball cards. However, if you know nothing about collectible baseball cards, you won't be able to tell a real "1993 Derek Jeter SP Foil RC #279" card from a fake one. The same goes for a real vintage Rolex watch from a fake Rolex watch. Fraud is a huge issue in the collectibles market.
Fortunately, several companies work with the evaluation and certification of collectibles in different sub-markets in the collectibles industry. In some sub-markets, respectable vintage watch- or rare art dealers can act as certifiers and issue authenticity certifications. Then there are renowned grading companies with established grading standards in other sub-markets, such as CGC (Certified Guaranty Company) for collectible trading cards and comics. However, physical packaging and documents are even easier to forge than physical objects. The process of having experts evaluating and issuing certifications does not end the problems with fraud. It is part of the puzzle, making it more difficult for con artists and fraudsters.
VIDTs NFT technology becomes another piece of the puzzle in securing the authenticity of collectibles. Through VIDT, a tamper-proof digital copy containing digital documents and high-resolution photos can be secured and stored on the blockchain.
When an art dealer or a grading company inspects, evaluates and grades an object, they would create an NFT for the object and its documents. As I already showed in a previous post about VIDT and NFT, VIDT Datalink already has traction in the collectibles market. Below is a list highlighting the potential of integrating VIDT NFT technology in different sub-markets in the collectibles space where fraud is common.
Current estimates have the collectible art market valued at between $37.7 and $56.6 billion. The discrepancy of almost $20 billion comes from the fact that many sales are from very wealthy collectors who wish to purchase art privately, away from public auctions. Naturally, with such a valuable market, fraud is prevalent. Fraud within the collectible art market is estimated to $6 billion, according to an FBI report. Lack of regulation and a focus on art theft rather than art fraud is one of the main reasons why fraud is so common in the collectible art market.
VIDT NFT technology can form an important part of the puzzle in combating fraud in collectible art.
VIDT has already been successfully used specifically to secure the authenticity of a Rembrandt painting.
Investing and collecting rare coins is a huge market, estimated to be worth between $3.8 and $8 billion annually. Again, it is common that collectors of valuable coins prefer to stay anonymous, making it difficult to estimate the collectible coins’ market. Forgeries are common within collectible coins as well. It is estimated that around 10% of all dealings with collectible coins are fraudulent. Most of the fraud involves coins that are more affordable compared to the very rare and expensive coins. The exact dollar value relating to the fraud rate is therefore difficult to estimate.
Again, VIDT NFT technology can be used to combat fraud and forgeries.
Collecting, investing and trading vintage watches is a multi-billion dollar industry. The market for new luxury Swiss watches was worth $20 billion in 2020. The total market value for vintage watches is again difficult to estimate. Fake watches are a huge problem in this collectible sub-market, estimated to be in excess of $1 billion annually.
VIDT has already helped secure several vintage watches using their NFT technology.
All in all, the collectible market is valued at around $370 billion annually. It would be huge if VIDT can capture some of these sub-markets and become an industry-standard for NFT within some space/s.