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What is an NFT?
By Kay Ridge
What is an NFT?
A non-fungible token or NFT's are currently being discussed all over the world as innovation.
NFT's have been around since 2014 and are a collectible digital asset, which holds value as a form of cryptocurrency in an art form. Art is a value-holding investment. Now, so are NFTs. much like Qoin, Bitcoin or Ethereum. An NFT is unique and something you cannot exchange, hence why it is called non-fungible. The NFT file stores extra information, which elevates it above pure currency and brings it into reality. There are many NFT's, from digital art to music files. However, the difference is that instead of receiving an oil painting to hang, you get a JPG file.
Are NFT's One of a Kind?
Essentially yes, as they have unique identifying codes. Many NFT's are digital and available on another platform such as Instagram, and an excellent example of this is video clips for NBA games or marketing, e.g. Taco Bell.
Record NFT Sale...
Digital artist Mike Winklemann (aka "Beeple") created a composite of 5,000 daily drawings called "Every Day" -: The First 5000 Days," which sold at Christie's for a record-breaking $69.3 million.
NFTs in the Fashion Industry
The Cryptokickers Sole Selector collaborated between design studio Rtfkt and Fewocious, an 18-year-old digital artist living in Seattle. Listed respectively at $3,000, $5,000 and $10,000, the three chaotic designs, each slightly different, were sold during one seven-minute period. In total, 621 pairs were purchased, netting the equivalent of $3.1 million.
Can you market NFT's?
Taco Bell sold taco-themed
on marketplace Rarible, and the drop of 25 sold out in 30 minutes. The NFT held a $500 gift card, which the original owner could spend, the
TacoCards now selling on the secondary market and selling for $3,500. Not including the gift card.
How do NFT's work?
NFTs are used within the Ethernet blockchain and are sold as individual digital tokens.
As NFT's are seen as a valuable commodity, they can be purchased with cryptocurrency. The difference compared with art is you keep a file, not a wall hanging. The value is set mainly by the supply and demand in the market. NFT art is also available in the market and similar to art prints, identical to images of an original canvas having value; the same applies with NFT's; however, they hold less weight. To prove you have a genuine NFT, you will need to confirm your downloadable file as that extra blockchain information.
NFTs in the Music Industry
NFTs can be in the form of limited-edition experiences, concert tickets, merchandise, digital content, and music. Fans bid in auctions for these tokens, and the winner receives the content in their digital wallets in a secure transaction.
This process is great for the artists as they can raise money for the content they auction and keep 100% of the funds because these exchanges eliminate the record company. The price might be high, but what you get is a unique piece of content, and the artist collects without having to split it with anyone else.
Artists have a lot of flexibility over the items they want to auction off. These tokens can be digital. Albums, digital art,
sound bites, merchandise, and concert tickets are all forms of non-fungible tokens that artists are exchanging.
Kings of Leon, were the first band that released a series of NFTs.
The series was called "NFT Yourself," cited from Rolling Stone (Read Article here) One type is the album package; the second, live show perks (front seats for life);
the third type is an exclusive audiovisual Artwork.
All three types of tokens offer artwork designed by the band's long-time creative partner Night After Night; the smart contracts and
intelligence within the tokens were developed by YellowHeart, using blockchain technology, attempting to add value to music again and
better direct-to-fan relationships."
Shawn Mendes "wearables" digital avatar on NFT Marketplace Open Sea Shawn is donating all of the proceeds to the Shawn Mendes Foundation Wonder Grants Program.
Popular NFT Marketplaces
NFTs are definitely here to stay, and as they start to become better known in Australia, we will see new enterprises and auction houses specifically for digital and crypto art.Dash Social is very active in the cryptocurrency world, have a chat with us or join one of our online webinars and find out more.