My day so far: CFB betting, NFTs, Crypto trading, Best Ball drafts on @UnderdogFantasy, and now red wine pic.twitter.com/CjD3bSDVLi
I’m future years people will look for “rookie nfts” first times they appeared on the blockchain … fun
BTC, USDC, and NFTs will likely remain legal in many jurisdictions. Other areas have higher regulatory risk. But the traction of digital gold, digital dollars, and digital art means crypto is here to stay.
Who would take a Crypto and NFT course on @treehouse right now?
05 September, 2021 - 03:02pm
Visa (V) - Get Visa Inc. Class A Report recently announced that it’s getting into the game for non-fungible tokens (NFTs). The finance company hasn’t really jumped into the deep end. Their $175,000 purchase of a single digital image is better described as “dipping their toes” than “going for a swim.”
Timothy Collins sees it as an interesting move, if not necessarily one that shakes up the market.
He recently wrote on Real Money "Visa jumps into the NFT (non-fungible token) deep end with a purchase of a CryptoPunk. Does this mean NFTs will be a moonshot? No. Does it make Visa an NFT play now? Also, no."
"That being said, there is a takeaway from this. Corporations are getting involved in the NFT market. Arizona Iced Tea teamed up with the ... Bored Ape Yacht Club recently. We could see more corporations turn to NFT for marketing and brand awareness. Essentially, trying to fit in with the 'cool' kids."
Most likely, Collins writes, right back into the NFT market.
"When I meet someone who made their money developing properties, the first thing they talk about after selling a development is what are they going to develop next. A house flipper looks for more houses to flip. A landlord looks for more properties they can rent out."
"If you made your first big killing trading stocks, you're probably going to stay with trading stocks. We know how hard it is to drag the early winner of crypto away from crypto. Why would NFTs be any different? If you make your first million trading NFTs, you're probably going to stay with that same model as long as possible."
In other words, says Collins, as more companies begin to take an interest in the NFT space investors should expect this asset class to grow (although not necessarily stabilize). Every time a company buys an NFT, they have made an investor that much wealthier. Every time an NFT investor gets wealthier, the odds are good that they’ll reinvest at least some of that money back in the NFTs that made them money in the first place.
05 September, 2021 - 03:02pm
Updated 8:44 AM ET, Sun September 5, 2021
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05 September, 2021 - 05:00am
NFTs or non-fungible tokens first captured the public imagination when a digital collage by an artist named Beeple sold for USD 69m at Christie’s in March 2021. Since then, there has been an explosion in the use of these units for storing digital content, which are bought and sold using online ledgers known as blockchains.
Since that initial connection with art, we are seeing NFTs being used in numerous other ways. Notably, many are being traded as collectables on exchanges like OpenSea and Rarible. Lately, for example, a series of 8,888 adorable “Pudgy Penguins” made a splash, each reflecting its own unique characteristic, with one selling for a record ETH 150 (about USD 5m).
Yet whether it is a remarkable piece of digital artwork or a cute digital penguin, NFTs are essentially tradeable jpegs or gifs. Unlike physical collectables, an NFT owner will not be able to display the asset in their home – except on a screen. They might think they could display it on a website, but this isn’t necessarily the case. So what is someone actually getting when they buy an NFT, and what do they truly own from a legal perspective?
To understand NFTs, it is important to understand what is meant by “fungible”. Fungible is derived from the Latin verb fungi, meaning to perform. In the broader context, this means interchangeable and relates to whether something can be exchanged.
Money is fungible, in the sense that you can buy a commodity worth GBP 10 with any GBP 10 note; it doesn’t matter which one you use. On the other hand, NFTs cannot be exchanged like for like with another. They are each one of a kind, or one of a limited edition.
Content sold as NFTs can be created in many ways. It can be computer-generated, which was the basis for the production of 10,000 unique CryptoPunks in 2017.
It can reflect a collaborative work, such as the English singer-songwriter Imogen Heap’s series of music NFTs, “Firsts”. These involved her improvising alongside visuals provided by artist Andy Carne. Or NFTs can represent a single work, such as Beeple’s artwork; or a series of items, such as the Kings of Leon’s “NFT Yourself” series in which the assets on offer included music albums with unique features and special concert tickets.
NFTs allow the owner of a limited work or collection to reach their audience directly. Whereas previously it was not possible to sell something like the first ever tweet, or a taco-themed gif, or indeed a piece of art online, now individuals, companies or cultural organisations can do so as long as they are the rightful owner.
The creator can do this because, according to UK copyright law, copyright arises automatically when a work is created – as long as it reflects the “author’s own intellectual creation”. This means that the creator of a work is the owner of the copyright, and can do what they want with it.
When someone buys an NFT from the creator, they obtain ownership in the sense that it becomes their property. After all, an NFT is a digital certificate of ownership representing the purchase of a digital asset, traceable on the blockchain.
But the NFT holder does not have any other rights to the work. This includes those offered under copyright law, such as the right of communication to the public (in other words, making the asset available to the world at large), or the rights of adaptation or reproduction.
The situation is the same if you buy a physical collectable. Owning a painting does not automatically give you the right to display it in public. It also doesn’t give you the right to sue for infringement of copyright if someone reproduces the image in the painting without permission. To obtain such rights, you either need to be the copyright owner of the work or have the copyright assigned to you by the creator (in writing and signed).
The trouble with online content is that, by virtue of its digital nature, it is easy to share, copy and reproduce. Buyers of NFTs need to understand that they would be infringing the copyright if they engage in such activities without the permission of the right holder. The only way such rights can be transferred is through the terms embedded in the NFT, in the form of a licence.
There have been some NFTs where the buyer has been granted the right to use the copyright in a limited way. For example, owners of CryptoKitties NFTs have been allowed to make up to USD 100,000 in gross revenues from them each year. In other cases, creators have specifically restricted all commercial use of the work. For example, the Kings of Leon stipulated that their NFT music was for personal consumption only.
Buyers, therefore, need to be clear that the main reasons to buy an NFT are the speculative investment and the pleasure of having something unique from an admired artist, brand, sports team, or whatever. Unless the terms allow it, buyers will only have a limited ability to share the creative work on public platforms or to reproduce it and make it available for others.
Incidentally, buyers should also be aware that the blockchain cannot absolutely know whether a creative work is authentic. Someone can take another person’s work and tokenize it as an NFT, thereby infringing the rights of the copyright owner. You need to be sure that you are buying something that originated from the creator.
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05 September, 2021 - 12:10am
NFT winter? Not so fast. While NFTs had a colder start to the week as some big projects saw selling activity, by the end of the week most mainstream projects held fairly strong. While the past week has been a quieter week than some of the action-packed stories we’ve seen over the past few months, there’s still a lot to review.
Let’s take a look over everything that happened in the wild world of NFTs over this past week.
In last week’s Nutshell, we covered OpenSea’s massive volume boom lately. This week, OpenSea added support for Ethernity Chain token ERN. The token joins the ranks of USDC, ETH, and DAI.
Emerging NFT project Loot has smashed it’s way into the top three in volume charts this week. Loot was brought to market by former Vine creator Dom Hofmann and has been all the rage in NFT discussion this week.
Part of the draw to Loot is it’s ambiguity. Users are paying only for gas fees, and are receiving a list of “randomized adventure gear” as part of an NFT game. No images, no stats, no descriptions. The floor price for Loot is already in the thousands of USD, and nearly a quarter billion dollars worth of sales have already occurred. Safe to say things move quick in the NFT space.
Despite no established game rules yet, a massive community is already being formed around Loot.
Larva Labs have created an unbelievable legacy with CryptoPunks. Now, the Punks IP (along with others in the Larva Labs umbrella) are headed to Hollywood.
Larva has signed with United Talent Agency (UTA) in a deal that will include representation for opportunities across film, television, video games and publishing projects.
Don’t be too shocked if you see a CryptoPunk on the big screen one of these days.
Our team at Bitcoinist has been covering the early journey of Andy Milonakis’ exploration into NFTs. Andy purchased his first NFTs this week, and went on his Twitch livestream to discuss. Check out this and more from our latest coverage on Andy’s expedition here.
Two stories this week that we covered here at Bitcoinist show the impact of broad market growth for NFTs.
First up is MetaMask, who recently crossed 10MM daily active users. MetaMask has become a popular tool for both NFT and DeFi consumers in crypto.
Solana broke into uncharted territory this week, with NFTs to credit as well. The token surpassed Dogecoin in market cap, and there are now over 36 unique projects building on the SOL blockchain.
Earlier this week, prominent NFT collector Pranksy placed a bid of nearly 100 ETH on a fraudulent auction for art of popular artist Banksy.
An anonymous individual notified Pranksy on Discord that the sale was likely to potential hackers. Surprisingly, within a matter of hours, fraudsters returned the funds to Pranksy after it seemed that Pranksy identified the hacker and followed them on Twitter. It is likely that the pressure Pranksy was applying in looking for the fraudster was enough for them to return the funds.
Check out the full story from our coverage earlier this week here.
OpenSea certainly has established a “first-mover” advantage to the market. Can other marketplaces beat out cost-efficiency and user interface to aggressively position themselves against OpenSea? Only time will tell.
Our good folks over a sister network NewsBTC covered a great piece on sentiments from pseudonym analyst CroissantETH. The croissant’s theory? That GameStop could leverage Ethereum-based NFTs to onboard millions of users onto their upcoming NFT platform, as the gaming company looks to be the “Amazon of gaming.”
Grab a plate and check out the full story on the croissant’s perspective here.
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04 September, 2021 - 01:32pm
The new decade’s start was exciting and thrilling in the cryptocurrency field. New all-time-high records for the leading digital asset and altcoins, exciting market events, influencers pumping cryptocurrencies, and NFT hype — the last winter was all but cold in this field. The chance of making easy money sold the idea to engage in the market to a huge number of people who originally were very far from the digital asset market. Most wanted to achieve fast gains – pretty much regarding this just as another opportunity like the crypto casino or lottery. However, the desire to boast of having something exceptional that is inimitable also created a demand for rare non-fungible tokens, which can now be classified as a new class of virtual assets. Being an owner of something unique and expensive becomes a new kind of hobby that elevates its owner in certain premium clubs and closed communities.
It may seem weird for a newcomer, but NFT tokens do not represent something fundamentally new. It’s rather the victorious comeback of a not-so-successful experiment, reinvented. Going back in history, we can remember that in 2017, CryptoKitties or "digital cats" made the headlines, each having a unique color, bizarre shape of eyes and ears. The most expensive "cat" with a unique "genotype" was sold at auction for $155,000. Smart users managed to earn real money with this initiative and even managed to overload the still low-throughput Ethereum blockchain, as a high volume of transactions led to a sharp increase in fees within the network.
However, some people are still unable to clearly designate the difference between thousands of existing cryptocurrencies and NFT tokens. The latest class of NFTs represents highly rare and expensive items like elite jewelry, collectible old coins, or other, different yet expensive real-world physical items — meaning they are unique in their kind. Such tokens are purchased through online platforms and then paid in USD or cryptocurrency, with costs ranging from a few dollars to millions when it comes to art houses.
NFT tokens can also be compared to baseball cards, which are also unique and popular among sports fans. Collectors are willing to spend incredible amounts buying these items at auctions. In 2007, one of these cards with the image of the American baseball player Honus Wagner, printed in 1909 in the amount of 57 copies, was sold on eBay for an incredible $ 2.8 million.
The trend has not changed much since then, but there is much more hype around this topic. New NFT projects and marketplaces are appearing ever more often, and are gaining ever more popularity. Even popular auction house Sotheby’s now supports this initiative, as the first NFT sale with digital creator Pak amounted to a staggering $17 million!
Earlier, the British auction house Christie's launched a one-lot sale of the digital artwork called "Everydays: The First 5000 Days" by American artist Mike Winkelmann, also known as Beeple. The piece was eventually sold on March 11, 2021, for the astonishing price of $69.3 million.
The NFT's uniqueness is also achieved by utilizing the ERC-721 standard. Compared to the conventional ERC-20 fungible token types, the NFT token cannot be counterfeited, replaced, or broken into pieces, representing its ultimate value as a whole asset.
Regardless of the technical details, NFT can be used to prove ownership of an object. And thanks to the tokenization of real assets, NFTs can reflect the fact of their ownership. Such an object or asset can be an image, real estate, music, any digital artwork, game item, or character. Once digital files are uploaded as non-fungible tokens on blockchains, they can be offered for sale, since it would always be possible to distinguish the original file from its copies shared online.
It is already common in the media to see headlines about the sale of NFT tokens for millions and tens of millions of dollars. Jack Dorsey's tweet was sold for nearly $3 million, and as disclosed above, Beeple's NFT painting amounted to a record $69 million!
As for the risks, many remember well the fate of most ICO tokens, which lost most of their value, with over 80% of ICO token projects turning out to be scams. NFT could repeat the history of ICOs if the industry really overheats in late 2021. It is also not clear how museums and art galleries plan to include NFT tokens if many of the visitors are still highly conservative, as they will raise the question of how to return NFT art in case of theft or loss, to which unfortunately there is no answer at the moment.
In case the interest from high net worth individuals, media personalities and notable
influencers increase, we will surely witness even more growth in the NFT sector and new record-breaking gains. Expert Dan Kelly, president of Nonfungible.com, compares this to owning a single Mona Lisa original and reprints per painting. That being said, even if thousands of NFTs are sold with digital images that look the same, the underlying information due to the blockchain technology will be different.
These markets are highly speculative — just like cryptocurrencies. Extensive tools for monitoring trends are still being developed. So far, users and buyers do not have ample opportunity to assess the value of an asset or to find out if there is sufficient liquidity to realize their earning potential.
Why do people want to obtain such items so badly? This certain twist of human psychology can be explained by the ownership of luxury items such as Swiss Rolex watches, which the wealthy buy almost exclusively to emphasize their high social status and belonging to a specific inner circle.
But how can this be outlined in the digital world? Posting the purchased digital artwork as an avatar, for example, on Twitter is the most obvious way. Everyone using the blockchain will be able to check whether it really belongs to the account owner.
NFT tokens are coming close in their definition to a Maybach, Bugatti, or Patek Philippe kind of thing: a highly prestigious asset that opens the way to some opportunities and privileges that are closed to most of the population. The people that enjoy possessing these assets are entering the society of the chosen.
Some wonder if the NFT industry is close to its dawn, and both where and when the downfall will start. However, art remains art despite an NFTs all-digital nature. There has always been an increased demand for something new and flashy. NFTs still belong to a maturing market, and the history of digital art is just beginning.
Some wonder if the NFT industry is close to its dawn and where the downfall will start. There has always been an increased demand for something new and flashy. NFTs still belong to a maturing market, and the history of this field is just starting.
Undoubtedly, this niche is highly speculative and even more risky than the crypto market. If you have no experience with digital assets, it is best to make sure that you are not spending more than you are willing to lose, but for those with the means, NFTs are the new technology in the crown, and are the new must-have digital item of the early 21st century.
NFTs are the new fun thing for some to collect, but they could also be the next failed trend, so proceed with caution.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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