NFTs and luxury watches share similarities, as they both can be collectibles and appreciate in value. However, it’s rare to see NFT holders exchange digital assets into physical items or vice versa. The 4K marketplace, which went live Sep. 29, looks to change that.
The 4K platform is more than just an NFT marketplace. It also allows users to exchange the NFTs they purchase on the website in return for the physical form of that item. So, rather than purchasing an overpriced luxury item on StockX or GOAT, people have an alternative platform where they can search for collectibles.
What's the 4K marketplace?
The 4K platform is the first and largest digital NFT marketplace that’s backed by physical assets. It reportedly raised more than $3 million in funding in Jul. 2021. The peer-to-peer marketplace allows users to sell personal items deemed as collectibles, and the items will become minted into NFTs. A customer will send the physical asset to 4K, where it will be authenticated and then stored at a secure storage facility, similar to StockX’s procedures.
After the item is stored securely, the sender will receive an NFT of the item. Customers can redeem the NFT for the physical item, sell the NFT on the 4K marketplace or other marketplaces, hold the NFT for safe storage of the physical item, or even use the NFT as collateral for the loan. The platform ensures that the storage facilities are insured and have the appropriate climate for the collectibles.
How to purchase NFTs on 4K
Users who want to purchase NFTs on 4K must enter a draw where the winner will be able to purchase the item. Users must have a MetaMask wallet to purchase NFTs, which people can install as a browser add-on. They will be required to have the amount of Ether the item is listed for in their MetaMask wallet when the draw is over.
When someone purchases an NFT on the 4K marketplace, they will receive the NFT and it can be exchanged for the physical item. Users cannot hold both the NFT and physical form of the collectible. If the NFT is held, the holder has the opportunity to earn a yield on that digital asset, similar to how physical items can appreciate in value. The platform currently focuses on luxury collectibles such as Rolex watches and rare apparel and footwear such as Adidas Yeezy shoes.
What makes 4K stand out from other marketplaces?
The 4K marketplace shares many similarities with eBay, StockX, and GOAT, as users can resell their collectibles. What’s unique about 4K, however, is that many of the luxury items it offers are available at the manufacturer's suggested retail price instead of the secondary market price.
On eBay and StockX, pre-owned items tend to sell for much more than their original price. Some of these marketplaces also have excessive fees that buyers have to pay when purchasing pre-owned items. The 4K marketplace looks to change that by not charging excessive purchase fees or setting high resale prices. It currently has a Rolex watch that’s listed at its retail price, $4,000 less than its estimated secondary market price.