Daryl Kelly on NFTs and digital collectibles ownership

0:00I'm Ashton Addison from Block West capital for investment pitch media and today on the crypto coin show we have Daryl Kelly the CEO of limited Inc Daryl welcome to the show and thanks for taking the time hi Ashton thank you very much for having me and uh yeah great to be here likewise let's just dive straight into it I'd love to start with a little bit on your

0:22background in blockchain and what got you interested in starting limited ink and then we'll dive into all the things that your company's working with yeah perfect so um like most people I come from a more traditional background of insurance real estate Finance uh actually all based in Barbados which is where I was born I grew up for many years but um I was introduced to Bitcoin

0:44in 2016 and as soon as I understood the concept of digital SC I was completely blown away and just thought wow this is going to change a lot of things um spent the next few years kind of finding my way and educating myself and seeing how I can fit into a space and in 2020 launched my first blockchain company called Bitcoin movement and it was under that company that we launched one of the

1:05world's first streetwear collections connected to the blockchain via NFC Tech so we built this technology we did it with the UK wrapper we did 300 pieces garments and we put the power of authenticity in the hands of our collectors by providing them with an app that they can scan uh the product and gave them authenticity on the spot and then all kinds of product information

1:25and exclusive content and then from there we obviously that was a success it was great um the last two years we've been building limited ink on top of that and we went live with limited team in February just on amazing and I I really do like the sort of The Limited aspect and where I'm seeing you know these sort of collectors items and higher price tickets I feel

1:48like you know nfts have a much more added value in those at least to start in in fashion art um and eventually this technology is going to move into everything but I feel like those early adopters you know it's it's more of an added value to prove the authenticity of these things especially ones that are exclusive and people are flipping them quickly and different

2:08things like that so maybe you could talk a little bit about where limited Inc is focusing and sort of what is the main value proposition of the uh project right now yeah perfect well you hit the nail on the head that there's definitely that focus on the market you know digital scarcity scarcity and the ability to prove that a limited edition is in fact

2:26limited has value scarcity equals value so we've applied that logic and that technology to physical Goods essentially so our unique selling point is that basically while 99 of the market was focused on digital only assets which by the way I love and you know I'm a crypto Punk holder or a board a like I love that space and I think it's just it's the start of a whole new asset class but

2:49for us it was always about how do we onboard traditional collectors into web3 and so having it something tangible was a very kind of obvious way to connect the two and for us put in the power of authenticity in the hands of our collectors is a really key component so the ability to prove authenticity of a hoodie by supreme or a piece of art by an artist when he says I'm only doing

3:11100 prints is he really doing 100 prints well he is when he does it with us because you know because you can verify on the blockchain um the other one is powering the uh Creator economy so every time one of our physical pieces sell a royalty goes back to the artist or goes back to the brand so if you take the stockx model and Nike for example Nike launcher product on

3:33stockx it sells at a private Market great they sell it for 400 a pair of shoes now they're selling for two thousand dollars but Nike completely removed from any appreciated value again they don't capture any of that without technology if they launched it on Limited in they would capture every secondary sale and take a cut on all those sales so for us that's a really

3:52powerful kind of value proposition to Brands and artists who want to essentially build a body of work as opposed to you know constantly trying to having to create new new work essentially and I do love that functionality that it just wasn't possible before for you know the royalties and and sort of Creator fees and uh chain chains of transactions where you can see how many times it's

4:15been traded and yeah people who created it are able to recapture that value you know when and it's totally lost and I feel like this can be applied to a lot of Industries you know it's uh not just with you know like expensive shoes where they they get resold for five times the price but for tickets and things like that where people just buy them all up

4:35and they resell them and and you know it's a business in itself just reselling uh the people that are reselling it are are selling it to legitimate fans that couldn't really get access but those are the people that won it in the first place and here we go this is one of uh this is an NFC infused ticket so we did we did this at nft London this is an NFC

4:56chip in here it's bound to an nft it gives all kinds of long-term rewards to the owner to the to the holder um exactly what you're saying you know ticketing is such a big uh kind of space for nft ticketing I think it's been huge very cool so uh what are all of the sort of categories and and Brands and products that that you're first working with in limited Inc uh to to grow the

5:23project quickly yeah so we work across a number of categories we're focused on Art um fashion Street where uh we got into collectible toys and collect the Collectibles Market because it's I think it's insane in our day and age that when you buy a collectible from let's call let's say a pair of boxing gloves from a famous boxer and they just handed this

5:43piece of paper and says this is real well that's crazy when you're and then you know that can go as far as art and everything it's all working on that same system at the moment we had to kind of take that to the next level you know really web 3 that whole Market um and yeah so Collectibles is a huge one ticketing has actually become really popular since we did our ticketing for

6:03the Wrangler um event with Leon bridges in Brooklyn uh we got a lot of attention around that functionality of our software um and yeah I mean at the end of the day I think we've really focused in on like four or five categories um and why not I would say it's probably one of our our biggest ones because just applying the technology to the authenticity of art is skewed

6:28and for these collectors that are looking to you know buy exclusive items do they actually go on to the limited Inc site and then they they purchase a physical item and it's shipped to them like similar to Amazon but they're also receiving the nft at the same time yeah basically yeah we try to make it as easy as possible so you could buy with credit card or you and then that turns

6:50it into the ethereum but um yeah so essentially you go on to limited ding you connect your wallet you buy the nft on the Spots You're immediately deposited the nft which is the ownership over the physical you plug in your shipping information and then we fulfill the physical side and we ship that out to you and then when you get it you scan it and that kind of connects the two

7:09physical and the digital NFD and then you get to really like interact with the product and engage with it very cool and how you know how built out do you see right now with limited ink on the nft side obviously there's an added value there for you know the the scarcity and the traceability and the royalties um do you see that part of the technology continuing to evolve as

7:36limited ink grows and and if so how do you see that growing um yeah so I think that I mean there's many ways to do it there's you know we're not the only brand doing it but we're one of probably three who are actually tackling this kind of what we call physical world I hate that word but um you know it doesn't does kind of really sum up the whole emerging the Two

7:58Worlds and we're constantly developing this software to better it and there's all kinds of you know there are pitfalls in what we're all doing because it's so new and there's a certain level of Education or you know this is a new space it's new tech so it doesn't all work perfectly at the moment so the idea for us is to keep building on top of what we've got

8:19um I think in five years you'll be very unlikely if people aren't buying trainers from Nike or handbags from Louis Vuitton that don't have a chip in them I think it's become a huge part of um Brand Story and and how they engage with users because I think web3 will just you know infiltrate Our Lives you know there's no way this is the only way this is going it up and uh Mass adoption

8:42is you know not far it's just around the corner so yeah I think I think this Tech is made for Mass adoption for sure and based on you know following the nft craze in the market since about one year ago was sort of the peak you know when the Bitcoin Market peaked as well there was a lot of volume in nfts um and a lot of that since gone down um have you seen that reflect in you

9:09know this niche of uh fidgetal Collectibles where you know people that are interested in nfts are are buying physical items off of limited for the speculation of the nft side of it or do you think it's unrelated so I think there's a certain expectancy trading connected to all nft purchasing I think there is there's two there's two

9:37types of Traders there's what they call the djans who are looking to scalp and flip all these nfts and then then the market we're trying to really plug ourselves into is more the long-term collector so more like the traditional collector who just wants to leverage or sees the benefit of a product backed by a token on the blockchain and so we're not in any huge hurry we create these

9:59very thoughtful collections they're not particularly big you know 100 pieces at a time um you know so we're not trying to change the world with you know one drop but rather tap ourselves into these communities and show the tech to people and I think you know it's only a matter of time until everyone realizes how uh helpful is really definitely and I feel like there's still

10:21a lot of large companies to to come in and you know dip their feet into the waters in this uh in this way that your team's building the nfts now if large companies come in or say that you want to expand into new product lines do you actually have to work uh with Nike per se you know and you make a a primary Market sale where you know instead of the shoes going on stockx they're going

10:47on limited and you're working with them or are you able to take any products and sort of attach nfts without the the creators consent no so the way we work is to work with the Creator yeah we we're not really trying to authenticate products for the sake of it we're trying to really kind of change a shift in customer behavior and create a behavior and that is by

11:10both parties you know I suppose the utilizing their technology so we'd work with the Creator we'd look at what IP they already have um if they don't if they don't have anything appropriate we'd work them to create something you know conceptualize a project that really fits their brand and the Wrangler one's a great example we worked with a one-of-one physical

11:29denim jacket and jeans we Infuse NFC technology and it we created um you know kind of content by Leon Bridges which is infused in the product um so it's a really kind of like thoughtful Hands-On crafted project and that's kind of how we like to work so look at the brand see what really fits there we're not trying to we're not here for the short term we're here for

11:51the long term to kind of really craft these cool stories and I know there's a there's kind of a line out in the you know Twitter sphere that you know nfts are for storytelling but I mean realistically when you when when you do what we do it really is you know the whole story lives within the product but when you scan it you then go through that whole story and it lives with it

12:10for in for its entirety definitely and it's definitely an added value over you know the piece of paper um but one question I have is you know if they get if the physical items get moved around or stolen and you know sometimes it's hard to keep track of the digital version and the physical you know when you have the piece of paper you know you can have them side by side

12:35and be like these go together but sometimes the digital can get lost I'm curious if you've seen this in the industry or if this is something that will be emerging is that you know you as you showed with the ticket and sort of having a NFC um built in that has the nft sort of integrated into the product do you think that that will happen with you know the

12:57clothes or the shoes or or tickets where the the scan ability to the digital world is actually integrated into the physical product absolutely yeah I mean I mean to be honest with that that denim jacket has a chip in it this is Hoodie has a chip in it um this fine art print which is one of our products this has a chip on the label so all of these are

13:24this is what we do we integrate NFC technology into physical products across fashion art so yeah I think exactly that I think this is this is the way that people will I don't think kids will be buying shoes in five years unless they're able to scan it and verify that it's a real pair of Nikes that it's got a story embedded embedded by the collaborator whoever that

13:46basketball player is or whatever that is you know because it's such a there's such a cool way to to engage with a product that I can't see it not sort of you know becoming the kind of standard for certain brands I mean it's not for everybody it's it has a certain threshold but I think this is certainly something that a lot of Brands will gravitate towards especially like in the

14:05luxury sort of space as well very cool and you know you're talking about long-term Vision which I think is great um maybe you can talk about you know where you see limited ink uh in the space you know three years from now um and and what that looks like yeah well ideally we are trying to build a trusted ecosystem that um basically creates a safe place for

14:33Traders for collectors to come and know that they're going to be able to buy an nft or a physical or an authentic physical piece of art fashion whatever that might be from the Creator that we're saying they're buying it from so it you know we're essentially an anti-counterfeiting mechanism as well so you know the idea of really this whole Black Market

14:53I believe can be solved with some some part what to take that we're building like I said there are certain pitfalls that we're all overcoming with it but it works and I think I the idea really is just to build a global seamless frictionless trading platform where people can trade with trust and know that they're buying an authentic piece of our of fashioned

15:16um ticketing I mean there's a huge problem with ticketing authenticity there's so many problems with just authenticity at the heart of it and really like our Tech can be applied to multiple ways really very cool I'm looking forward to you know that Revolution and for the viewers that want to see what are the current products that are available and and what's coming up next

15:39what's the best way to follow along with limited yeah just our domain oh so yeah I suppose on Twitches will be our most active so that's limited Inc LTD underscore official uh so that's our Twitter and Instagram uh or our website which is ltd.in C sounds crazy Earl I will leave those links in the description box below to make it easy for the viewers as well

16:03thank you so much for the insight into the digital Collectibles and and where it's going and it's a fascinating feature I'm looking forward to it uh all the best with limited Inc moving forward and let's follow up in the near future likewise thank you Ashton appreciate it