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A Non-fungible token (NFT) is a unique token that dwells on a blockchain as it represents other data, be it an image or video. If you happen to have one, it means that you’re the only one who has it and can’t be replaced. The relevance of cryptocurrency has skyrocketed in recent times. And so do these tokens, thanks to those artistically inclined individuals who are turning their works into NFTs. That said, it begs the question, what’s the fuzz all about?
NFT art
For artists who are into this, they deem it a digital canvas to exhibit their work within the interwebs. Nonetheless, some believe that these people have just discovered an avenue to make a quick buck.
Finance and economics commentator Frances Coppola once said that it’s just “the pure desire to get rich that drives everything in the crypto space right now,” adding that these NFTs are just one of those “bubble manias.” Financial Post cited an instance back in 2017 about this so-called bubble.
For the uninitiated, initial coin offerings (ICO) was a fad back then where the entry selling of such coins was still low. Iterations upon iterations were made as it raked in billions of dollars in investment. Unfortunately, this bubble reached the threshold and eventually popped. This alongside the people’s belief that “the scarcity claimed for those digital coins was undermined when so many were being flogged.”
With that in mind, it may well seem that today’s NFTs may have a similar issue. Why do you ask? One can simply replicate one of these tokens, albeit they’re not the ones who created the asset that got tokenized.
Future looks bright
The entrepreneur Gary Vaynerchuk, on the other hand, has a different view with these NFTs. CNN previously reported that he’s selling what’s described as “new use case for NFT” dubbed “smart event tokens.” It went on to note that these have real value rather than digital art.
He has this “VeeFriends” NFT collection that will allow buyers to gain access to his VeeCon business and marketing convention for three years. Vaynerchuk believes that the future looks big for this type of NFT – as a membership for goods and services.
Everyone who’s into this NFT hype should enjoy it while it lasts. Here’s to hoping that the pop won’t be arriving soon or, better yet, not happen at all.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
