Clothes Made of Pixels and Bits: An AI-driven Topic Modelling Analysis of Fashion NFTs Compared to Digital Fashion

Non-fungible tokens (NFTs) exploded onto the global digital landscape in 2020, spurred by pandemic-related lockdowns and government stimulus (Ossinger, 2021). An NFT is a unit of data stored on a blockchain that represents or authenticates digital or physical items (Nadini, 2021). Since it resides on a blockchain, NFTs carry the benefits of decentralization, anti-tampering, and traceability (Joy et al., 2022). Fashion brands quickly capitalized on these features, launching fashion NFT collections and garnering significant profits from the sale of fashion NFTs in 2021 (Zhao, 2021). For example, Nike’s December 2021 acquisition of RTFKT (pronounced “artifact”) resulted in USD 185 million in sales less than a year after their acquisition (Marr, 2022).