Unless you’ve been living under a rock, you’ve probably heard about NFTs, the latest craze in crypto. NFT stands for 'non-fungible token', which probably doesn't make things any clearer. Well, luckily for you, your Crypto Curious hosts Tracey, Craig and Blake are here to help!
Unlike Bitcoin, each NFT token is unique with its own unique properties and specific value. Whereas one BTC token always equals one BTC, an NFT is hosted on a platform like Ethereum or Solana and valued in that platform's currency (ETH or SOL). The purpose of an NFT is to act like a blockchain-based contract that guarantees proof of ownership of an underlying asset.
Recently, digital art NFTs have exploded in popularity, with people paying millions of dollars for artworks like Beeple’s ‘Everydays: The First 5000 Days”. We discuss how NFTs have several other use-cases like on-sold royalties for musicians, as rare collectibles, for exclusive benefits, and as in-game items that you can use externally. Musicians and bands like Grimes, Kings of Leon and Slipknot have already entered the NFT world and the NBA are releasing NFT-based trading cards.
The most popular NFT collection, Crypto Punks, has become something of a status symbol in the crypto community. We recently discovered, however, that the highest selling Crypto Punk NFT - at $530 million - turned out to be someone selling it back to themselves. Welcome to the wacky world of NFTs!