March 6, 2021 / Business

Millions Of Dollars For Memes: NFT Boom Is Coming

nft

Investors have spent over $ 100 million on non-fungible tokens over the past month. To date, the number of wallets that participate in such transactions has exceeded 220 thousand. This investment segment is growing rapidly: according to NonFungible.com service, the market for such tokens grew by 300% in 2020 compared with 2019.

NFT or non-fungible tokens are distinguished from ordinary BTC or ETH by their uniqueness: it is an original crypto asset that cannot be divided into several parts or replaced with another. Such tokens are bought for collecting. Usually NFTs secure the owner’s rights to a piece of art (art or music, for example). Ownership is recorded on the blockchain.

Sorare blockchain platform CEO Nicholas Julia saya that there are two categories in which NFTs are used: crypto art and blockchain games.

“We value art, but we believe that it is the gaming blockchain that will grab the attention of the mainstream user to technology.”

Among the collectibles, there are works that are worth millions of dollars. For example, in February, illustrator Mad Dog Jones earned $ 4 million from the sale of his digital art, Argentine designer Andres Reisigner sold a collection of digital furniture for $ 450,000, and the creator of the Nyan Cat meme received $ 580,000 in cryptocurrency for animation with the famous cat.

In turn, Twitter creator Jack Dorsey put up his first tweet for sale. At the press-time, maximum bid was $ 2,000,000 and the auction hasn’t finished yet.

New York gallerist Vincent Harrison explains the popularity of NFT tokens with a primal instinct for hoarding and a desire for rare status goods.

“If this seems strange to you, then it is. The idea of ​​buying a product that anyone can download from the Internet seems idiotic or comic. Nevertheless, NFT tokens claim to solve the problem of ownership, because otherwise it is almost impossible to monetize digital art,” Harrison told The Wired.

Nicholas Julia adds that among the Sorare audience there are not only collectors and crypto enthusiasts, but also football fans who have not invested before.

If earlier digital art was promoted only by specialized online marketplaces, now traditional players have also joined the game – in particular, Christie’s auction house. He posted on his site the work of the famous digital artist Beeple.

“A new digital generation of investors has emerged who are looking for their familiar assets outside of traditional markets,” says Nadia Ivanova, L’Atelier COO, “these are people with capital, they want to invest it exclusively in virtual assets, such as NFT”.

NFT technology itself is used outside of digital art collectibles. Non-fungible tokens are used in the gaming industry for digital identification, licensing and tokenization of real assets. For example, in February, South Korean internet giant Kakao gave customers the option to store private shares in NFT format. The product is designed for start-up stocks, which are offered to early investors before the IPO.

Non-fungible tokens help raise money for charity: virtual influencer Lil Miquela raised over $ 80,000 through NFT in support of the Black Girls Code project.

NFT technology is more widespread in the West, but Russian companies also use it for their projects. Last October, Zenit Football Club tokenized its players. Users were offered to purchase cards with the image of their favorite player in the form of an NFT token. The cards are unique and were sold at the Sorare auction. Sorare digital cards turnover in the world exceeds € 11 million

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