Notice
Details

This website uses cookies

We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services.

Cookie Policy

What are cookies?

A cookie is a small text file that a website stores on your computer or mobile device when you visit the site.

  • First party cookies are cookies set by the website you're visiting. Only that website can read them. In addition, a website might potentially use external services, which also set their own cookies, known as third-party cookies.
  • Persistent cookies are cookies saved on your computer and that are not deleted automatically when you quit your browser, unlike a session cookie, which is deleted when you quit your browser.

Every time you visit our websites, you will be prompted to accept or refuse cookies. The purpose is to enable the site to remember your preferences (such as user name, language, etc.) for a certain period of time. That way, you don't have to re-enter them when browsing around the site during the same visit.

Cookies can also be used to establish anonymised statistics about the browsing experience on our sites.

How do we use cookies?

Currently, there are four types of cookies that may be generated as you browse our site: Strictly Necessary, Statistics, Preference and Marketing cookies.

1. Strictly Necessary Cookies

These cookies are essential for you to browse the website and use its features, such as accessing secure areas of the site. Cookies that allow web shops to hold your items in your cart while you are shopping online are an example of strictly necessary cookies. These cookies will generally be first-party session cookies. While it is not required to obtain consent for these cookies, what they do and why they are necessary are explained in the table below.

How do I control Strictly Necessary Cookies?

You can use your browser settings to control whether or not we set session cookies. More information on your browser settings is provided at the bottom of this page.

Please be aware that these cookies are critical to the efficient working of the site. If you choose to disable these cookies from this site, the functionality of the site may be greatly reduced.

2. Statistics Cookies

Also known as "performance cookies," these cookies collect information about how you use a website, like which pages you visited and which links you clicked on. None of this information can be used to identify you. It is all aggregated and, therefore, anonymized. Their sole purpose is to improve website functions. This includes cookies from third-party analytics services as long as the cookies are for the exclusive use of the owner of the website visited.

Statistical information is used in reports and to improve our site. For example, we have used analytics data to add, remove or change features of the site based on how popular they are with users.

We track, for example:

  • the numbers of visitors to individual pages;
  • when pages were visited;
  • how long users stayed on the page;
  • the IP address of the user of the website;
  • the page they came from;
  • technical data about the device being used to browse the site (such as browser and operating system version, and display size) — we use this data to ensure that the technology our site uses is appropriate for the majority of our users, and how best to display the site for users who have less capable browsers.

More information about Statistics cookies

We use cookies from different partners including Google to provide our analytics data. You can read more about how Google Analytics treats your data on their web site. You can also read Google's full privacy policy.

How do I control Statistics cookies?

Google provides a tool to opt-out of Google Analytics. This is available for all modern browsers in the form of a browser plugin. Additionally, you can control how cookies are set using your browser settings.

3. Preference cookies

Also known as "functionality cookies," these cookies allow a website to remember choices you have made in the past, like what language you prefer, whether you have accepted our cookie policy, what region you would like weather reports for, or what your user name and password are so you can automatically log in.

4. Marketing cookies

The advertisements you see displayed on this, and other, sites are generated by third parties. These services may use their own anonymous cookies to track how many times a particular ad has been displayed to you and may track your visits to other sites where their ads are displayed. Please note that advertisers can only track visits to sites which display their ads or other content. This tracking is anonymous, meaning that they do not identify who is viewing which ads.

Tracking in this manner allows advertisers to show you ads that are more likely to be interesting to you, and also limit the number of times you see the same ad across a wide number of sites. As an example of how advertisers operate, if you recently researched holidays, adverts for holiday operators may subsequently appear on our sites.

We do not have access to, or control over, these third party cookies; nor can we view the data held by these advertisers. Online advertisers provide ways for you to opt-out of your browsing being tracked. More information about the advertisers we use, and how to opt-out, is provided below.

Youtube

We display clips from Youtube related to our Crowdfunding opportunities. You can view Youtubes's privacy policy on their website. This page also allows you to control what cookies YouTube saves on your computer.

Google

We work with Google to optimise how Google ads are displayed. You can discover how Google protects your privacy relating to ads at its privacy policy.

Cookies you may see used on konvi.app

Cookie name Default expiration time Purpose Description
_fbp 3 months Marketing cookies Facebook: to store and track visits across websites.
_ga 2 years Statistics cookies Google Analytics: to store and count pageviews.
_gat_UA-* 1 minute Statistics cookies Google Analytics: functional
_gid 1 day Statistics cookies Google Analytics: to store and count pageviews.
_iub_cs-* 1 year Preferences cookies iubenda: to store cookie consent preferences.
euconsent-v2 1 year Preferences cookies To store cookie consent preferences.
referrerReferralId 1 browser session Strictly necessary cookies Track user referrals
t_gid 1 year Marketing cookies Taboola: assigns a unique User ID that allows Taboola to recommend specific advertisements and content to this user
APISID 2 years Marketing cookies Youtube: Google Ads Optimization
HSID 2 years Marketing cookies Youtube: to provide fraud prevention
LOGIN_INFO 2 years Marketing cookies Youtube: to store and track visits across websites.
PREF 2 years Marketing cookies Youtube: to store and track visits across websites.
SAPISID 2 years Marketing cookies Youtube: Google Ads Optimization
SID 2 years Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
SIDCC 1 year Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
SSID 2 years Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
VISITOR_INFO1_LIVE 1 year Strictly necessary cookies Youtube: to provide bandwidth estimations.
YSC 1 browser session Marketing cookies Youtube: to store a unique user ID.
__Secure-1PAPISID 2 years Marketing cookies Youtube: Google Ads Optimization
__Secure-1PSID 2 years Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
__Secure-3PAPISID 2 years Marketing cookies Youtube: Google Ads Optimization
__Secure-3PSID 2 years Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
__Secure-3PSIDCC 1 year Marketing cookies Youtube: to provide ad delivery or retargeting, provide fraud prevention.
IDE 1.5 years Marketing cookies doubleclick: serving targeted advertisements that are relevant to the user across the web.
RUL 1 year Marketing cookies doubleclick: serving targeted advertisements that are relevant to the user across the web.
variant 1 browser session Strictly necessary cookies For providing targeted content to users
cookie_consent 1 year Strictly necessary cookies For persisting cookie consent
1P_JAR 1 month Marketing cookies Google: optimize advertising, to provide ads relevant to users
NID 1 month Marketing cookies Google: to provide ad delivery or retargeting, store user preferences

Removing cookies from your device

You can delete all cookies that are already on your device by clearing the browsing history of your browser. This will remove all cookies from all websites you have visited.

Be aware though that you may also lose some saved information (e.g. saved login details, site preferences).

Managing site-specific cookies

For more detailed control over site-specific cookies, check the privacy and cookie settings in your preferred browser

Blocking cookies

You can set most modern browsers to prevent any cookies being placed on your device, but you may then have to manually adjust some preferences every time you visit a site/page. And some services and functionalities may not work properly at all (e.g. profile logging-in).

Further help

If you still have any concerns relating to our use of cookies, please contact us at support@konvi.app

Allow all cookies
Use necessary cookies only
← Back to all articles

Are There Bubbles in the Sneakers' Investment Market?

Oshin Ahlawat
17.3.2022

Air Jordans

Let’s go back in time for a moment – it is April 1st, 1985.

Ronald Reagan is sitting in the President’s chair inside the White House, listening to "One More Night" by Phil Collins that was playing on every radio station in the United States, whilst reading the newly released issue of Time magazine, with the picture of Lee Lacocca gracing its bright red cover page.

The first Nike Air Ships – Michael Jordan's earliest known regular season game-worn Nikes - have just hit the US market, costing – wait for it - only $65.

Now let us fast forward to October 24th, 2021, when a collector named Nick Fiorella, bought the very shoes at a Sotheby’s auction for $1.472 million.

From 1985 till 2022, the transformation of Sneakers from simply shoes to stocks can be attributed to the popularity of sneakerhead culture due to the consequent rise of basketball popularity, celebrity culture and technology.

While the broader public’s exposure to these unique investment opportunities continues to rise, it becomes even more vital to wonder if it really is a worthwhile and sustainable investment as sneaker enthusiasts will have us believe?

Everyone wants to know: What’s the hype?

When it comes to sneakers as an alternative asset, the importance of a story revolving around it adds just as much value to the product as the hype it receives if it is an item appropriated by a subculture, or validated by a renowned sports or music celebrity collaborators such as Kanye West for Adidas, Travis Scott, Kylie Jenner, and Dwayne ‘The Rock’ Johnson.

The story might be a nostalgic one, revolving around an athlete or the mystique of a particular designer. For instance, the 1985 Air Jordan’s we mentioned earlier, they appreciated from $560,000 to $1.472 million in 2021. In just a year, it had appreciated by twice the amount.

Virgil Abloh, whose Off-White sneakers generally appreciate well, has the same kind of hype surrounding it. In 2021, according to Sotheby’s public records, sales from Abloh’s coveted sneakers have become the highest-known valuable sneaker and fashion auction.

This situation looks profitable at a casual glance – the demand is high, the variety is diverse, the turnover sounds convincing as well.

But keep this important fact in mind: just because the overall market for a product goes up doesn’t mean you’re guaranteed to profit. Supply saturation and other factors can actually depress asset prices even while the market grows.

What really are the risks with investing in Sneakers?

Like many alternative investments, sneakers can be volatile. Sure, you can make money investing in sneakers, and just like any other tangible goods, even if they don’t explode in value, they can still be considered a great asset.

Cam Wolf of GQ warns, “The process makes investors much less liquid — if you need the cash from that pair of Jordans you’ve sunk money into, you can’t unilaterally force a sale to recoup the initial investment.”

The business of investing could be set to become more complex due to a growing ‘hype fatigue’.

Rise of the Secondary Market For Sneakers

While reselling has been around since the ‘80s, it really took off with the growth of the internet and smartphones. However, it is driven by sneaker owners reselling to consumers willing to pay a premium.

As more individuals try to resell a finite number of shoes, resellers can only mark up their products so much before competitors undercut them. This leaves sellers in a precarious position as the secondary market expands.

According to the Investment Bank Cowen Inc, the $2 billion secondary market has the potential to reach $6 billion by 2025.

As sneakers grow exponentially more in demand, so will their supply. Yet, the result might not give as much of reason to celebrate for sneakerheads or those looking for great returns as it might appear at first glance.

How will a ‘Post-Hype’ Era for Sneakers look like?

The Hype – the story, the history, the celebrity collaborator – surrounding a sneaker is a significant aspect to determine its value fluctuation.

It isn’t something you can quantify, or keep track of as easily as a publicly traded stock, or even ascertain whether it is likely to maintain its demand.

Derek Morrison envisions a “post-hype”, more fragmented era for sneakers. He adds that, “Luxury sneakers can appreciate as dramatically as more affordable releases from mainstream brands, but in order for that to happen, their supply must be genuinely limited. If a new release doesn’t sell out immediately, it will impact long-term appreciation as an investment."

Other risks that can depreciate the value of sneakers as an asset in the future are:

  • Loss of interest - people being swayed by the popularity of other assets and losing interest in your inventory.

  • Damage to the reputation of the brand of the asset – Take Nike’s sneakers for example. 90% of the current resale market consists of them. But if by some twist of fate, an event damaged the Nike brand abruptly and severely, it would certainly cause a lot of damage.

To avoid the same fate of the inevitable bubble bursting of the athleisure industry, which went belly up as soon as the trends changed, a similar risk looms over the sneaker and streetwear industry, which is experiencing a similar unsustainable gold rush.

Tell your friends

Get insights into the luxury collectibles market

Login / Sign up