A new NFT has been sold! But what is an NFT?
Surely you heard about it and didn't understand anything. Well, we'll summarize it for you just like this: an NFT or Non Fungible Token, is a "certificate of authenticity" that is currently moving millions of dollars.
They are unique identifiers for a unique digital asset on the Internet “Non-fungible" means that an asset does not wear out through use and, moreover, is unique because it cannot be replaced by another one like it.
What are NFTs?
Actually, it can be anything. From a tweet to a meme, a song, a piece of digital art, you name it! However, a Non-Fungible Token has four characteristics: they are unique, indivisible, transferable and with the ability to prove their scarcity.
This is one of the most well-known NFTs, it is a tweet from Elon Musk where he sells a song:
Do you like cats? Maybe you will change your mind after learning that one person bought this digital piece for $170,000.
Are you a fan of Lebron James? You might be surprised to learn that he managed to sell many of his NBA play-by-play videos as NFT. This is clearly a universe that is just beginning to expand because of the same versatility we've been talking about: anything can be an NFT, even this article could be one!
How is an NFT unique?
Simple, that's because a Non Fungible Token is registered with a special encryption on the blockchain. Some of the platforms that have specialized in this market are Nifty Gateway and SuperRare that use the Ethereum blockchain. #Fact: CryptoPunks was released in June 2017 as one of the first NFT on the Ethereum blockchain and the project was developed by Larva labs.
Who can create or sell an NFT?
Anyone can create a Non-Fungible Token and sell it. However, if this new way of making money has really caught your attention we recommend striving to create something truly unique and inimitable so that you can have a better chance of selling it for millions and millions of dollars, euros and even bitcoins.
Who buys Non Fungible Tokens?
While they can be bought by anyone, they are usually bought by people who have great purchasing power because this market works in a similar way to that of collectors. What drives people to buy NFTs beyond the piece is the need to say "this is under my control because I own the copyright".
The million dollar question: how much can an NFT go for?
Actually, it depends on the price placed on it by the author of the artwork. However, to give you an idea, an animated gif of the viral cat Nyan-Cat (a meme from 2011) sold for over $500,000. A few weeks later, musician Grimes, sold some of her digital art pieces for over $6M.
Soccer star, Cristiano Ronaldo sold his digital figure for $290,000. While Twitter CEO Jack Dorsey sold his first tweet on this platform raising $2.5M. And in the case of LeBron James' videos, he sold three of them for $200,000, $125,000 and $80,000 as they were video footage of highlights of his career.
#Fact: Did you know that the NBA in the last month has managed to raise more than $150 million selling the best plays of its stars?
Now that you have all the information about non fungible tokens, what do you think? Is it just a trend or, like bitcoin, is it here to stay? Would you dare to create a NFT? Will digital currencies and blockchain be the future of the economy? Let us know in the comments.