1. Growing numbers of crypto-affluents neglected by the luxury
industry
The value of bitcoin, the first and most well-known crypto-currency, has increased significantly.
Some alt-coins have also seen tremendous growth over the last 2 years – indeed no other
category of asset has offered such upside in the last decade.
This along with the token sale (ICO) boom and the rich 24-7 trading opportunities in 2016 and
2017 have created an entirely new community of affluent individuals – the “crypto-affluents”.
The founders of Aditus are veteran entrepreneurs in luxury and tech, and we have noticed
increasing numbers of such crypto-affluents at our luxury events. (We own 3 large scale yacht
shows in Asia, and organise events for affluent users monthly). In our discussions with them, we
discovered that while many crypto-affluents desire services offered by luxury merchants, they
still lack access to it, and feel excluded.
At the same time, luxury merchants (our long time partners & clients) similarly have no way of
reaching out to crypto-affluents, despite going through a period of slowing growth and eager for
new revenue growth.
This disconnect is driven by the following factors:
• Few luxury merchants accept crypto-currencies – lack of payment gateway
implementation
• Crypto-users are more privacy-conscious than your average user, while luxury
merchants need more targeting data than your average marketer to market their
goods
• Luxury lifestyle merchants simply do not know how to reach crypto-affluents
The above reasons are true not just of luxury merchants, but generally as well. Crypto-
adoption en-masse is still some time away.
Yet, at the beginning stages of our project in 2017, our team had an hypothesis that crypto-
adoption will likely first occur at the two opposing ends of the wealth spectrum, the
unbanked poor and the crypto-affluent.
This hypothesis has been tested and proven through our operations since January 2018, as
we have processed numerous transactions from crypto affluents among the luxury
merchants we have signed.
Challenges however remain. Luxury merchants are among the most traditional of companies,
and are used to traditional modes of marketing. They simply have no way to easily reach out to
crypto-affluents. This is especially so as we have observed that the crypto-currency / blockchain
community can be as insular as the luxury industry.
Luxury merchants have always required more targeted marketing due to the niche nature of their
products and the need for the right brand positioning. That higher level of targeting is currently
obtained through channels that extensively track user’s preferences and spending habits.
As an example, the Amex Centurion card and other premium credit cards are how many luxury
merchants reach out to fiat-millionaires. The data tracking of fiat millionaires in traditional banking
systems allow luxury merchants to target and identify the right audience for their products.
Short of crypto-affluents converting all their crypto-assets into fiat currencies, subjecting
themselves to traditional banking systems and its perennial tracking
, what we have is a doublesided access problem, in which luxury merchants similarly cannot reach crypto-affluents
2. Crypto-affluents desire and deserve the luxury lifestyle – this is a
missed trillion dollar opportunity
The luxury lifestyle business is a trillion-dollar, high margin business encompassing many
product categories.
A few examples of sub-industries that constitute the luxury lifestyle: