FS Reads: NFTs, Digital Art that is Worth Millions.
Over the last few months, you’ve probably come across the term NFT. Non-fungible tokens (NFT) are a type of tangible and intangible digital asset which has taken over the internet this year, with artists digitizing their works and offering the same at substantial prices as NFTs. However, the question arises that what is NFT? Why the popularity surged at an alarming rate and how celebrities are making millions of it. Here is everything you need to know about it.
What is an NFT and what's so special about them?
NFTs is a digital asset that exists on a blockchain. The digital asset represents real-world objects like art, music, photographs, in-game items, etc. It is a technology that enables true ownership of any type of digital asset or good. It serves as a public ledger that allows the owners of assets to verify and test their authenticity and ownership. These digital tokens are one of a kind and they cannot be replicated due to their unique properties. Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another as none of them are identical to each other.
How is it valued?
It is no doubt that the exclusivity has made these digital files worth millions. However, “Currently, assets are either valued by historical sales or by market floor pricing (the lowest price available),” Whale Shark said. “But in the future, I believe that professional valuation mechanisms that take into account the past, present, and future using predictive analytics will provide a clearer picture on valuation.”
What are they used for?
As it is purely related to art and digitalizing it, content creators and artists are using it to monetize their work. The process of selling their art is now easier as he/she can sell their art directly to the consumer as an NFT. Furthermore, many rappers and internet celebrities see NFTs as a more secure and long-term investment. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million. Artists such as Eminem, Snoop Dogg, The Weeknd, Lil Yachty, Soulja Boy, Lil Pump, and many more have shown keen interest in it.
Additionally, it is believed that the popularity of NFT upsurged to a great extent due to lockdown being imposed and people spending more time on the internet. On the other hand, the rest were lured by the rising value and massive returns. One of those people is Richard ‘FaZe Banks’ Bengston (Pro-gamer, Owner of FaZe Clan). He has been buying and selling CryptoPunk NFT in his latest financial endeavor. He openly shares the insane profit he makes from it on his Instagram with general guidance to people who want to explore it.
Do you think NFT is the next big thing after Bitcoin? Let us know!