🟢 Trends #0050 — Non-Fungible Tokens (NFTs)
Non-Fungible Tokens (NFTs) are all the rage, with a recent piece of digital artwork selling for $69M. With allegations of theft rising and artists not being paid for their work, what's the future of NFTs?
What are NFTs?
The background: Traditional art is hard to secure, sell, authenticate, store, tokenize, and collateralize. In-game items have weak property rights. Communities have weak alignment.
Non-Fungible Tokens represent one-of-a-kind items. Physical, non-fungible assets include the Bubble Palace, this 1993 MVP Trophy and Michael Jordan's "Flu Game" shoes. There are no equivalents. Here's another way to look at it:
- Bitcoins are fungible. Tradable 1 for 1.
- This CryptoKitty is non-fungible. It's 1 of 1.
NFTs are digitally scarce. They are easier to store, sell, authenticate, collateralize, tokenize, and value, and they have stronger property rights than physical assets.
NFT use cases:
- Art: Help prove ownership and authenticity.
- Voting: "Burn" tokens to affect change.
- Games: Buy, sell and trade in-game items.
NFT marketplaces:
Famous NFT artists:
The future of NFTs
Predictions: Creators and communities will retroactively airdrop tokens. RAC used Zora to give early Twitch, Bandcamp and Patreon fans $RAC.
NFTs will become cash-flowing alternative assets. (Guy J sold royalty rights to "Cotton Eyes" for $26K).
Projects will piggyback on the success of others with inter-operable NFTs. KittyRace and KittyHats build on CryptoKitties. These are two, of many, projects in the KittyVerse.
Opportunities for founders
Monetize trust and attention:
- 3LAU sold Everything Canvas for $77,827.77
- Lil Yachty launched a social token with Fyooz
- Cyborg partnered with an illustrator for a drop on NFT Gateway
Reward early adopters with retroactive airdrops: RAC used Zora. Roll and Unite are other options. Seed Club offers social-tokens-as-a-service.
Incentivize attendance: The Proof of Attendance Protocol lets users collect badges. See this live drop on The Nifty Show using Atomic Hub.
You can also check out who's bought/sold NFTs and A Beginner's Guide to NFTs.
Remember that belief drives the price of art and most currencies. Taxes, corporations and nations are also collective hallucinations. Timing and access, not price, are the primary sorting functions of drops. Brands build hype and leave money on the table with artificial scarcity. This is a flippers' profit.
What are your thoughts on NFTs? Would you invest in them?
NFTs are supertrendy right now. But that will cool down in time(remember ICO's e.t.c).
Making money on NFT is the same lottery as regular art, millions are doing that,but how many of these millions are successful? Except for how much amount of energy required to mint and auction an NFT.
One of our fav reports! 💚
What's your view on the energy used to support NFTs (minting, bidding, selling)?
Thanks Dru! These are great insights! 🏆
Personal opinion, there are too much hype right now on NFTs. The core usage is solid but the market is flooded with a mix of good and some dubious actors. This is a flashback to ICOs when it happened.
It will be great to see NFT mature once the honeymoon phase is over and we get to have a more solid understanding and expectations on how NFTs should be implemented in a more friendly and safer environment.
It's important to stress that it is not the NFT that makes the digital product valuable. The NFT makes the digital product unique. Something can be unique and worthless, like a very basic piece of digital art made by an unknown artist.
I shared this page on my website. For anyone who wants to find more interesting resources about NFTs: https://boostlane.com/h/nft/
This comment was deleted 5 years ago.