NFTs are all the rage these days, but what are they exactly?
We will give you a basic definition of them first and then a list of some the top selling NFTs to give you a real world flavor for their potential. Sound good?
Non-fungible tokens = NFTs
The easiest way to understand this may be the example of digital art. Digital artists who create their work on the computer instead of the canvas have a problem – anyone can copy their work, so how do you make a digital work of art unique?
That’s where NFTs come in to play – it’s a unique, one-of-a-kind token that is stored on the blockchain. So it’s similar to Bitcoin or other cryptocurrencies in that respect only in that its stored and transacted on the blockchain. But it is the only one of its kind, so it’s a like a mint of one coin.
Some prominent examples of NFTs recently sold, the sales price (based on current price of 1ETH=$1,780), and the company or person involved:
- Mark Cuban | The RollUp 2021 collectibles (set of 10) | 65 ETH ($115,700)
- Hashmask art | 420 ETH ($747,600)
- Axie Infinity game | Axie land, digital land parcels in the game | 888 ETH (~$1.58M)
- F1 Delta Time| 1-1-1 race car | 415.9 ETH ($740K)
- CryptoPunk | Alien #2089 | 605 ETH ($1.076M)
- CryptoKitty | Dragon, one of the og NFTs | 600 ETH ($1.068M)
Wondering why people are willing to pay these exorbitant numbers? Digital collectible sixth sense or bubble? That’s anybody’s guess.
But as Fred Wilson from Union Square Ventures put it:
- “Crypto technology has many uses and is absolutely not limited to speculating on meme coins. In fact, the emergence of real utility (vs speculation) is the single most important thing that needs to happen for crypto to live up to its potential (and current market values). I think NFTs and digital art is likely to be an early example of that utility emerging.”
We shall see.