An NFT, also known as a non-fungible token, is a digital asset with a secure code that protects its intellectual property, which makes it unique. These tokens can range from being pictures and video loops to music and digital collectible cards. It quickly gained popularity because anyone can monetize their digital creations and these tokens hold resale values. Makers can choose to set a commission on their tokens for resale compensation.
So far, the most expensive piece of NFT sold in an auction is called “Everydays: The First 5000 Days” by Beeple, whose real name is Mike Winkleman, for over $69 million. Of course, not all tokens can sell for that price, but entrepreneurs are beginning to see their value.
Emerging NFTs in the entertainment industry include The Weeknd releasing his own set of NFTs, consisting of four-second loops of 3D-rendered animations, featuring background music, on a popular marketplace called NiftyGateway. His NFTs are priced from $100 to $100,000. Other artists, especially in the electrical dance music world, also quickly adopted these tokens with limited album releases to gain profits.
The sports industry also took advantage of the NFT market. For example, the NBA took the selling of digital cards to the next level. These cards are not still images, instead, they are highlights from a player’s career in the NBA. NBA Top Shot is an online marketplace where digital sports cards are opened in packs and resold. A card of Lebron James’ tribute dunk to Kobe Bryant sold for over $250,000 on the marketplace and it is currently one of 59 cards in existence.
NFTs are becoming more popular, but thoughts and concerns have been raised.
Angela Navarro, 22, a world languages and global studies major student at Mt. San Antonio College said that she understands why people would purchase NFTs, but it is not something she intends to buy.
“I looked into NFTs before, I think it’s just the trendy way of collecting digital art,” she said. “Since it’s sort of a unique thing, people want it. I’m not really interested in getting one though.”
“Unlike collecting physical paintings and art, you can’t even use it to decorate your house,” Navarro said.
Evan Kam, 21, a political science major student at Mt. SAC, said that NFTs are like auctioned commissions which are sold and reinflated, but he is unsure about the future for this type of transactions.
“[NFT] does perplex and intimidate me since almost anyone can generate their own,” he said. “Interesting but potentially dangerous to what you can make.”