“Traditional investors who dismiss NFTs, the new digital asset class taking the art, fashion, music, and sports world by storm are fooling themselves if they believe they are fads”— Paul Ebeling
NFTs are 1-off digital assets that are verified through blockchain technology, giving buyers certificates of authenticity and ownership. They produce unique, non-interchangeable digital tokens, and can be bought and sold like any other assets but they do not have a physical form.
A growing number of globally established brands are becoming increasingly involved in the NFT market including Sotheby’s and the National Basketball Association (NBA).
Sotheby’s, the traditional auction house, held a 3-day auction of NFTs by an anonymous artist 2 wks ago. Meanwhile, Christie’s last month sold “Everydays — The First 5000 Days,” a digital artwork in JPEG form by an artist known as Beeple, for $69.3-M, which is the 3rd most expensive artwork ever sold by a living artist.
The virtual recognition of NFTs is real.
NFTs may be a novelty now, but it makes sense that with the fast pace of the digitalization of our world, digital assets will become increasingly valuable.
Demographics are on the side of NFTs: Millennials, and Gen Z especially, have digital lives and it is natural to want to take digital representations of luxury brands, music and art into these worlds, now they can.
Have a healthy day, Keep the Faith!