Social commerce marketplace Poshmark is celebrating its ten-year anniversary with a non-fungible token (NFT) auction. In addition to the digital assets’ ownership, auction winners will also have access to exclusive benefits over the coming decade, such as annual tickets to Poshmarks’ PoshFest and Posh Credits.
The initial auction took place yesterday on Bitski’s digital marketplace for one day only. The first item sold for $4,200, with all proceeds going towards the nonprofit Mission Bit and Poshmark will also match the final bid in donations. Ten copies are available, with the second to be auctioned later today.
Poshmark went public in January of this year. Its third-quarter results showed total revenues increasing by 16% over last year to $79.7 million. The fourth-quarter revenue is expected to range between $80 and $82 million. In addition, at the end of last year, Poshmark had 6.5 million active buyers, while at the end of the third quarter, it had 80 million app users.
But it is not all good news. In April, Apple changed its privacy policy that prevented advertisers from tracking iPhone users without their consent. As a result, Poshmark has had to spend more on marketing efforts to increase its customer base. Despite the rise in revenues, third quarter results are still below analysts’ estimates, while competitors ThredUp and RealReal performed better than expected.
The launch of an NFT may help with building an image of innovation and trendiness and help promote Poshmark’s name.
Meanwhile, other brands are using NFTs as a way to promote new collections, launches, or celebrations. These include Givenchy, the CMA, McDonald’s, and Dolce & Gabbana.
