While the genesis of NFTs or non-fungible tokens started sometime between 2012 and 2013, they’ve only risen in popularity — rather immensely, at that — in 2020 due to the boom of blockchain and crypto during the COVID-19 pandemic. Suddenly, there is now a whole new meaning to asset distribution, ownership, and protection. Artists, celebrities and social media influencers are now able to […]
While the genesis of NFTs or non-fungible tokens started sometime between 2012 and 2013, they’ve only risen in popularity — rather immensely, at that — in 2020 due to the boom of blockchain and crypto during the COVID-19 pandemic. Suddenly, there is now a whole new meaning to asset distribution, ownership, and protection.
Artists, celebrities and social media influencers are now able to sell their digital art and assets for crypto worth thousands in US dollars. In fact, from January to March 2021, more than $2 billion was spent on NFTs, a 2,100% increase from October to December 2020. Meanwhile, patrons are able to establish their ownership of these art pieces through blockchain.
Yet, as NFTs grow in popularity, they have also gained an unfavorable reputation for their impact on the environment and the art community as a whole. Such opposition is inevitable, given that NFT is a new concept to many communities and industries. But on the other side of the coin, NFTs such as those that come from play-to-earn blockchain games like Axie Infinity are giving people, especially those who are unbanked and underserved, the chance to build their wealth and ultimately join the formal financial system.
There are many pros and cons to investing and trading in NFTs but one thing is certain: they’re here to stay.
The growing NFT market
The NFT market is mostly driven by the influence of celebrities, business magnates, and other influential figures who see the advantages in investing in digital assets. For instance, world-renowned luxury auction house Sotheby’s launched an NFT-exclusive marketplace called Metaverse in October as a way of creating a shared space for digital artists, NFT enthusiasts, and art collectors. Metaverse has already received support from the likes of Paris Hilton, who recently listed her NFT collection on Sotheby’s Metaverse. Her collection features artworks from NFT artists such as Maalavidaa, Serwah Attafuah, and Chelsea Evenstar. The American socialite created her first NFT in March and has since then expressed being a long-term Bitcoin investor.
Even prior to the launch of Metaverse, Sotheby’s has been receiving support from other influential figures when it comes to fostering the NFT market. DJ and new crypto advocate Steve Aoki, for example, curated a collection of NFTs for Sotheby’s Contemporary Curated division in September to fund the The Aoki Foundation’s initiative that supports emerging female NFT artists.
Outside Sotheby’s, other celebrities have been venturing into the world of NFTs and spreading their influence across their online platforms. Snoop Dogg, who has been an avid supporter of Dogecoin since it rose in popularity, created an NFT collection in April where he shared his early memories with art as inspired by the early NFT movement. He donated some of the proceeds to young NFT artists and his Youth Football League. Lindsay Lohan also ventured into the world of NFTs by auctioning off her song “Lullaby” in March, which got sold for over $85,000, and her canine “fursona” in October in partnership with the Canine Cartel.
Of course, social media platform Twitter is also catching up with the NFT trend, considering that CEO Jack Dorsey has been a long-time supporter of crypto. He actually sold his first tweet as an NFT to Bridge Oracle CEO Sina Estavi for over $2.9 million in March. Twitter has also been working on different features on the app that would allow users to show off their NFT collection on their profiles and get a close-up look at an NFT and its detailed information.
The bigger role of NFTs
NFTs have undeniably changed the way people look at blockchain and crypto. For some, NFTs are just part of a pyramid scheme, while others see them as a way of supporting artists, businesses and more. According to Nadya Ivanova, chief operating officer of research firm L’Atelier, NFTs are allowing content creators to own the property rights for their work and earn profit differently compared to how they traditionally sell physical art.
Showcasing NFT projects that some of our community members are working on.
Fortunately, hundreds of blockchain-based solutions are enabling crypto enthusiasts to invest in and trade NFTs today. PURSE, the reward token mechanism on Pundi X Chain, for instance, will allow users to participate in NFT auctions and airdrops, discount vouchers, gamification items, collectibles, and more. Beyond this outcome, PURSE also incentivizes XPOS usage, expands Pundi X Chain’s ecosystem, and increases $PUNDIX utility, breathing more life into a burgeoning blockchain ecosystem.
As more influential figures promote the creation and trade of NFTs, we can see adoption for blockchain and crypto further increase in the years to come. These technologies are consistently proving that digital is indeed king and that it has the power to empower individuals, communities, and nations worldwide.