GAP dropped “GAP Threads” and “Frank Ape x GAP” NFTs on the Tezos ecosystem this past week, releasing different types of NFTs all of various rarities and functionalities, including  one hundred priced at $415 which come along with a redeemable physical sweatshirt. To conclude their first week entering the metaverse, on January 24th, 2022 GAP had an NFT-based auction for one-of-a-kind pieces.

What is GAP Building?

GAP recently released a series of digital hoodies—in the form of NFTs—which users can collect and combine to unlock items that are higher-value, known as “epic.” This means that individuals will first need to collect common and rare pieces to unlock access to purchase the epic NFT. The common pieces started at $8.30, equal to 2 tez. 

The company has shared plans to make these products wearable in various metaverses that are currently being developed. In order to acquire an epic, customers will need to purchase four common and two rare NFTs which would grant them access to participate in the epic drop. When you add the price of the epic NFT—the “gamefied experience,” as they put it— the cost is about $500 for NFTs and a physical hoodie.

“Why Tezos”

GAP’’s platform of choice is a unique move, as many large-scale NFT releases have typically occurred on the Ethereum network. Tezos uses a proof-of-stake model in lieu of a proof-of-work algorithm, enabling it to be a more sustainable option than other networks. Moreover, Tezos have designed their network to be self-amending and highly secure, especially for large transfers.

Brands have historically relied on the Ethereum network to drop their NFT collections, though GAP divergence may mark a growing trend of brand straying from the tried and true as they enter the metaverse. 

What Does This Mean for GAP?

GAP has spent the past few years scaling back on their retail presence and the amount of storefronts open in the US. They also recently released other limited drops such as the Yeezy x GAP collaboration, with 70% of the sales attributed to first-time GAP customers. 

After clear success in the limited edition drops market, alongside success post-rolling back physical store presence, GAP looks to the metaverse as a viable next step. The GAP Thread website states that these NFTs “are just the beginning” and that they have plans to integrate this project into “charitable causes and collaborations, games and metaverses”. And GAP’s subsidiaries—notably, Banana Republic, Old Navy and Athleta—may soon follow suit.

ABOUT THE WRITER

Gunnar is a Tech Innovation Fellow at Identity Review from the University of Chicago. He has worked with numerous Silicon Valley Venture Capital firms and is interested in defense technologies & contracting

Contact Gunnar at gunnar@identityreview.com.

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