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Gap Harnesses NFT Craze By Taking Classic Hoodies Digital

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Gap Inc on Thursday launched non-fungible tokens (NFTs) of its iconic hoodies, raising the clothing maker’s shares by about 5%, becoming the latest major retailer to dive into the world of speculative crypto assets.

The 50-plus-year-old firm’s drive to sell virtual assets for real money follows similar initiatives by apparel companies such as Nike Inc, which announced the acquisition of NFT maker RTFKT last month. .

Mattel Inc has also released NFT versions of its Barbie and Hot Wheels lines.

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NFTs, a type of digital asset, have exploded in popularity this year with works of art sold for millions of dollars.

Gap said its NFTs will be billed in increments ranging from around $ 8.30 to $ 415 for a collectible accompanied by a physical hoodie. Prices can fluctuate with the value of the cryptocurrency used to make purchases.

The company is collaborating with Brandon Sines, the artist behind the cartoon Frank Ape, on the NFT collection hosted on the Tezos blockchain.

Gap said Tezos uses an energy efficient approach to secure its network. The cryptocurrencies needed to buy NFTs have been criticized for their large carbon footprint.

(Reporting by Ananya Mariam Rajesh and Praveen Paramasivam in Bengaluru; editing by Devika Syamnath)