METAZ: Understanding Tokenized Sneakers
Questions often arise about the nature of tokenized assets on the METAZ marketplace. Are they merely NFTs, or do they represent something more tangible?
This article aims to clarify the concept of a RWA (Real-World Asset), addressing common questions about the tokenized sneakers (NFTs) on the METAZ marketplace, the tokenization process, and how these things bridge the digital and physical worlds of sneaker collecting.
What is a RWA (Real-World Asset)
Real-World Assets (RWAs), in a sentence can be defined as simply: digital "tokens" that represent physical or traditional financial assets on the blockchain (wondering why Sneakers are moving towards Web3? Read here).
While RWA is a new term, the concept has been around for a while - over 10 years. Stablecoins such as USDT debuted in 2014, and they are nothing but tokenized fiat currencies. And, while stable coins are tokenized fiat currencies, there are many other types of real-world assets: precious metals, real estate, land, stocks, art and more.
METAZ focuses on collectible real-world assets, specifically, collectible sneakers. This digital representation of collectible sneakers allows these tangible assets to be traded, or used as collateral in various applications without handling the physical asset itself. In short, RWAs brings new opportunities and much needed liquidity to previously illiquid assets.
Are they NFTs or Sneakers?
METAZ Tokenized Sneakers are both:
- Digital NFTs on the blockchain
- Represents ownership of the physical sneakers (which is secured in the METAZ vault)
They are digital representations of actual, authenticated sneakers that exist in the real world. As METAZ NFTs are tied to the physical sneakers itself, owners can always request to "redeem" their NFTs for the physical pair at any time. Below is a visual comparison between conventional ways of resale and METAZ:
In simple terms, when you buy, sell, or trade METAZ Sneakers on the marketplace, you are buying, selling, and trading the digital rights of the vaulted sneakers themselves.
The Tokenization Process
The tokenization process for METAZ sneakers involves a couple of simple steps:
- Inspection: Each physical sneaker is thoroughly vetted for eligibility. Sneakers that are sent to us for custody must be: new, unworn, authentic, and must have their original packaging. Additionally, they must have market demand or a be collectible/rare sneaker.
- Secure Storage: Approved sneakers are safely stored in the METAZ vault.
- NFT Creation: A detailed digital representation of the sneaker is created, including all relevant information (brand, model, size, condition, etc.) and dropped to the owner's wallet.
Can I Receive the Physical Pair?
As METAZ NFTs are tied to the physical sneakers itself, owners can always request to "redeem" their NFTs for the physical pair at any time through our redemption application.
However, holding the tokenized version of the sneaker on the METAZ platform can yield many benefits and types of rewards.
What are the benefits?
Tokenized sneakers offer numerous advantages:
- Reduced Storage Concerns. Owners don't need to worry about storage or maintenance of physical sneakers with METAZ's custody service.
- Sneakers become easily tradable assets. Seller's get paid out almost instantaneously and buyer's don't have to wait long shipping delays.
- Global Access. Tokenized sneakers can be traded worldwide without physical shipping, VAT, or customs fees.
- Portfolio Diversification. Investors can easily add sneakers to their investment portfolios.
- Programmable Features. Smart contracts can enable new functionalities like staking and other DeFi functionality.
METAZ tokenized sneakers offer a secure, efficient way to own and trade valuable assets. Visit www.metaz.io to start the custody process for your sneakers and explore our marketplace today.
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