[NFTs] are non-fungible digital assets that have value. They can represent almost anything, from physical gift cards to virtual currency. NFTs can represent a wide range of items in the digital world, including cars, houses, currency (in both physical and digital form), art (either physical or digital), music and software, to name a few.
The [non-fungible token (NFT)] space is a bit different than the standard utility tokens that offer either rewards or partial ownership in return for an investment. Non-fungible tokens are unique in the sense that each token consists of its own metadata and value, making it completely unique. They can contain information about the fact that they‘re distinct from any other token. Information that makes a token non-fungible could include the name of the owner, picture of the owner, the unique number of tokens produced, or even a timestamp.
Whether you buy and hold, trade, or sell assets, non-fungible tokens or NFTs are quickly becoming the backbone behind the next generation of blockchain technology. NFTs are digital assets on the blockchain that can be traded peer to peer, never copied, and are unique in that they represent something else on the blockchain. This makes them an indispensable manner of storing data in a secure, censorship-proof and tamper-proof manner.
The earliest NFTs were CryptoKitties and EtherGoo (a crypto version of Tetris), but those only scratched the surface of what’s possible with non-fungible tokens. NFTs were first launched on the Ethereum blockchain in 2017 with the introduction of Crypto Kitties. Crypto Kitties allowed users to trade limited edition digital cats and enjoy the viral success that ensued. These collectible characters are non-fungible, meaning they possess attributes that make them unique from other digital assets. Other games and platforms have since emerged that make use of non-fungible tokens.
With [non-fungible tokens] (NFTs) emerging as a new asset class, there are companies in the cryptocurrency space developing tools and platforms to allow owners of NFTs to manage and trade them. Integrating with these tools can create a seamless user experience for customers looking to buy or sell NFTs.
In the spring of 2021, several significant news events occurred in the NFT space. In March 2021, a group of blockchain investors joined together to buy Banksy artwork for $95,000, which they then [burnt] during a livestream on YouTube. The subsequent NFT that they made of the Banksy sold for 228 ETH, which was worth $393,000 at the time.
Also in March 2021, digital art by the artist known as Beeple [sold] in an auction at Christie’s for $69.3 million. The buyer purchased the NFT in [Ether] which was a first for Christie’s.
CoinMarketCap’s NFT and collectibles page showcases projects and ranks them according to their market capitalization.
