Mark Cuban sold a GIF for more than USD81,000. Someone bought a JPEG for USD650,000 and a digital land title in a game sole for USD1.5 million, reported Vice. Even Lindsay Lohan and Logan Paul are creating digital collectibles called non-fungible tokens (NFTs).
Ok. If you are new to the world of NFTs, let us explain more about that.
First, what are Non-Fungible Items?
Fungible items are interchangeable because they are identical to each other for practical purposes, like money, gold bar, cryptocurrencies, shares, etc. For example, if Person A lends Person B a $50 bill, it does not matter to Person A if he is re-paid with a different $50, as it is mutually substitutable. In the same sense, Person A can be re-paid with two $20 and one $10 and still be satisfied since the total equals $50.
While non-Fungible items like paintings, house, car, digital skin on your Roblox, trademark, digital pet are not fungible because each unit has unique qualities that add or subtract value. For each valuation of houses, painting is different. Hence, it is considered non-fungible. For example, suppose Person A lends Person B his car. In that case, it is not acceptable for Person B to return a different car, even though it is the same make and model as the original car lent by Person A. Cars are not fungible with respect to ownership.
So, back to NFT. NFT stands for Non-Fungible Token. The token is referred to as a digital certificate through a blockchain.
So, NFT Token are digital assets, digital scarcity, digital ownership, and the possibility of asset interoperability across multiple platforms. So basically means that your NFT contain identifying information, protecting both the ownership and authorship.
NFT: The Next Disruptive Force In The Art Market?
According to the cryptocurrency news website BeInCrypto, over US$8.9 million worth of NFT-based art was sold last December alone.
Beeple recently auctioned off his 2020 collection that contained a 1/1 digital copy of every graphic piece he made. He creates a new graphic every day. This unique collection sold for almost $800,000, a new record.
Another one of his digital art will be on auction by Christie starting February 25 and ending March 11. It will be the first major auction house to sell a fully digital, NFT-based artwork.
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The work is a digital collage of 5,000 futuristic images that Winkelmann, 39, made — one image every day for 5,000 days — starting on May 1, 2007, through January 7, 2021.
Calvin Liu, the investor at Divergence Ventures, bought an NFT from the CGI influencer Miquela to raise $82,361 for charity. “Right now, it’s on display via Crypto Voxels, a digital gallery,” Liu said of his celebrity NFT. “A lot of artists and designers are now diving into the space.”
Here are some of the NFTs available to purchase if you are interested.
Ok, So I Can Just Download And Use Right Without Paying?
Yes, you can. Absolutely can. You would think, why would I pay anyone when I can just download or screenshot it for free. Take this scenario; you can shoot any painting of Mona Lisa or even print one out for free. But you do not own it. NFTs are a different set of collectors.
"Those who buy my art because they like it, and those who are artists and like support each other,” said Alejandra Her, a Venezuelan illustrator.
Other Things You Should Know
NFTs aren't cheap, and neither is selling them. Users need to pay Ethereum transaction fees to create and transfer the NFTs. Hence, there are more platform popping out and might drive it beyond Ethereum next year.
FYI, 1 ETHER now is USD1,900 at the time of reporting.