NFT stands for Non-Fungible Tokens. It is a new form of digital ownership that builds on blockchain – a digital ledger. Incidentally, cryptocurrencies, such as the best-known bitcoins, also use this.
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The NFT is used to prove ownership of a particular thing that only exists in the virtual world. Typically, these can be works of art, famous memes, game items, but also historical moments, such as sending the first SMS message. Because NFTs are created as unique, they often attract collectors and investors.
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In addition, NFT tokens are tamper resistant. People can store them in their own blockchain wallet, which is basically similar to a digital wallet.
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They made money in a few days
NFT can be a picture, a video, but also a plot in the virtual world. DappRadar collects data from ten different blockchains, which are used to register NFT owners.
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The prices of some NFTs rose so fast that speculators managed to make money on them in just a few days. But the prices of some were also very volatile. The world of art, for example, is making a quick profit on the NFT. The auction halls sold the NFT for millions of dollars. One work of art in the form of an unmistakable token was sold at a record $ 69.3 million at Christie’s last March.
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However, the NFT has also sold some of the world’s leading brands, such as Coca Cola and Gucci.
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However, sales estimates from different data providers vary, depending on what is included. The data often do not capture sales of art NFTs in auction halls. CryptoSlam said NFT sales last year were $ 18.3 billion. CryptoSlam also tracks multiple blockchains. NonFungible.com, which tracks only blockchain ethereum, estimates revenue at $ 15.7 billion.
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The money spent on the NFT last year roughly corresponds to the amount promised at the COP26 climate conference to help countries gradually move away from coal, or the funds released by the World Bank (WB) to buy and deploy covid-19 vaccines.
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Last year, 28.6 million digital wallets traded with the NFT. A year earlier, there were 545,000.
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The future of ownership in the online world
Some see the NFT as the future of ownership in the online world and the purchase of the NFT as an expression of confidence in the development of web3, a new emerging form of the global web www, or online world metaverse. Others do not understand why so much money is spent on items that do not physically exist.
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According to a survey published in the journal Nature, only ten percent of traders accounted for 85 percent of all transactions with the NFT.
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The most expensive known sold NFT cost $ 69.3 million, NonFungible.com reports that the normal price range is from $ 100 to $ 1,000. However, the prices of the most requested NFTs were very volatile.
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The most popular category was collector’s tokens, followed by art. Land sales in the metaverse were also among the large transactions. The virtual landing investor bought land in the virtual world of The Sandbox for $ 4.3 million.
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