As what I've said in my previous article I am not affiliated with any crypto projects as well as LUKSO labs, and they have not sponsored this post. Always do your own research and do not do this writing as investment advice.
Can you imagine Kanye West releasing branded tokens to his fans, which could be exchanged for real Adidas or their digital representation? Project LUKSO aims to digitize physical goods on the blockchain. These tokenized assets can be used to verify ownership of an item, convert to digital tokens, and exchange for real or other digitalized items.
Lukso has 2 special features:
The project works as a blockchain for the fashion and lifestyle industry. According to LUKSO CEO Marjorie Hernandez, its main goal is to enable fashion and design industry brands to survive in the digital world.
The other CEO of LUKSO, Fabian Vogelsteller, proposed a special type of ICO called Reversed ICO (rICO), which was later used for the sale of project tokens. The concept involves creating a special smart contract that allows investors to reverse their committed funds or continue buying tokens over time. What’s more, the rICO was approved by German regulators.
Use Cases
CEO Marjorie Hernandez explained that LUKSO is not an app with a token, but a layer of foundation, based on the Ethereum Virtual Machine (EVM). At the top of this foundation, many use cases can be deployed.
Currently, the project focuses on the following:
1) customizing items
2) validation of authenticity
3) item tokenizations
In a practical way, it works this way: after the goods have been manufactured, the brands register items on the LUKSO blockchain and create their "digital twins." Using the chips, all participants can track blockchain items to check their authenticity, origin, materials, and more. What is unique about LUKSO are the items that can be exchanged within the ecosystem. Designers can now provide incentives to consumers.
The project has 2 tokens:
LYX (native LUKSO cryptocurrency) and;
LYXe (LYX on Ethereum blockchain).
When LUKSO launches its mainnet (planned for spring 2021), there will be a LYXe to LYX transition to the LUKSO Blockchain.
Competitors
The idea of authentication and digitization is not new in the crypto space. For example, the most popular crypto project that proves authenticity is Vechain. On the other hand, LUKSO is tailored for fashion and digital style, while Vechain is a blockchain for tracking products.
Development According to the LUXO roadmap, they launched their test network L14 in June 2019 and will soon launch the Byzantine Fault Tolerance test network in Q3 2020. The launch of Mainnet should be in Q1 2021.
At this time, the project has a private sale and IEO; their rICO is currently running.
However, LUKSO manages to get the support of the following companies:
The Team
Reading Forbes articles about LUKSO, the first thing that attracts attention is LUKSO's connection to Ethereum. Yes, most people believe in LUKSO because of its well-known creator. RICO is a human invention by Fabian Vogelsteller, inspired by Vitalik Buterin. Fabian's name has always been associated with the Ethereum Foundation, as he was a developer who co-created the ERC-20 Token Standard. Fabian helped build the Ethereum ecosystem, creating the Ethereum Wallet, the first decentralized web3 Browser Mist, and tools like web3.js.
Fabian Vogelsteller is accompanied by his wife Marjorie Hernandez, who is a co-founder of LUKSO. Marjorie is a change strategist and consultant who has worked for Swiss and German brands. He also created and managed EY's Digital Innovation Lab, where he works closely with Ethereum and with the IOTA Foundation.
LUKSO's advisers include Daniel Heaf (Nike Vice President), Berndt Hauptkorn (Chanel President of Europe), Rajeev Aikkara (Burberry Digital Technology Vice President), Caroline Drucker (Instagram Head of Strategic Partnerships EMEA) and many more.
Tokenomics
The maximum supply of LUKSO will be 100,000,000 LYXE. With network launch, ~ 48% of all LYX should be in circulation.
Project Income
Since the project has not yet launched their mainnet, they will likely use the development funds raised from private token tokens, IEO and rICO. Their future revenue model is still unknown. On the other hand, since the coin’s maximum supply is 100,000,000 LYXE, the coin price is likely to grow due to scarcity and high demand.
Bottom Line
What I like about the project is the team and mentor. The name Fabian Vogelsteller was the first green flag, indicating that the project was worth attention. Apart from that, there are many names of the fashion industry in the advisory. If the LUKSO partner has at least one company mentioned on the list, then the reversal potential is no longer questioned.
The second green flag is the idea of rICO, which allows investors to act in real-time and withdraw their funds if the project stops meeting their expectations. As the creator of this idea, Fabian Vogelsteller advocated all crypto startups to have this type of ICO. This way, projects will clear the industry from scams and protect investors' funds, he explained.
Last but not least. Although LUKSO has some competition, it does not aim to monopolize all crypto markets and become the second "Ethereum." LUKSO chose the right place - a $ 500-billion fashion market.
