NFT Market – Time to Buy?
What do a British music icon, a social media mega-platform and a European crown prince all have in common? The NFT market.
This week they have all confirmed they are joining the NFT juggernaut, further boosting the NFT market’s position.
As the cryptocurrency industry prepares for an autumn boom, as predicted by market analysts and industry commentators, it is widely expected that the NFT marketplace will see a further surge in interest and value.
As this week’s developments show, NFTs are a hot topic, attracting international media attention and massive price tags. However, to many they remain something of a mystery.
What are NFTs?
Here we take a look at the fast-developing NFT market, explain some of the basics and discuss some of the high-profile entrants to NFTs announced this week.
For those of you who may not be aware, NFT stands for Non-Fungible Token which, in the simplest terms, means a unique digital certificate of authentication.
Consternation over the rapid growth of NFTs arises from the perception that people are paying astronomical sums for what are, essentially, pixel constructed pictures (to put it in very basic terms).
Well, the explanation is that NFTs are not just that.
In the ‘real’ world, you may have a physical certificate of ownership for an individual piece of art, proving you have ownership and which you would hand over with the artwork should you sell.
An NFT has a similar job, just in a different environment. An NFT is a digital token of ownership and authenticity for a digital artwork that lives in the digital sphere, making the NFT and the piece of digital art interchangeable.
The NFT Marketplace
The NFT marketplace represents the frontier between the physical and digital worlds. It's a place to buy NFTs, sell NFTs and trade using your crypto wallet.
The amounts people are prepared to spend on NFTs demonstrates there are plenty who believe there is a high future value for digital art. That explains the rapid growth of the market, and the rush from celebrities, artists and international brands to get a slice of the action.
For example, veteran British DJ Paul Okenfold has announced plans to release his latest album as an NFT (digital download) on the Cardano blockchain. Every part of album Zombie Lobster is set to be tokenised, including cover art, individual tracks and sleeve notes. The move is part of a collaborative partnership with NFT specialist Starship Universe.
TikTok also joined the NFT club this week when it announced plans for a creator-led NFT collection, demonstrating the social media giant’s confidence in the burgeoning sector. TikTok Moments is a collection of videos from six of the platform’s most influential content creators and all proceeds from sales go directly to the stars and NFT designers.
Non-Fungible Castle Conference
Even royalty are getting involved. This week the Crown Prince of the Czech Republic, William Rudolf Lobkowicz, launched his own collection of NFT works aiming to reflect historical pieces held at home.
The House of Lobkowicz traces its roots back to the 14th Century and has a reputation for retaining and preserving a wide range of works of art, from Beethoven to Canaletto. Visitors to the ‘Non-Fungible Castle Conference’ this month will be able undertake virtual tours and view some of the historical pieces alongside their digital representation.
Lobokowizc said: ‘By investing in an NFT, a patron receives ownership of a unique digital asset while directly supporting conservation efforts and other cultural activities.’
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.