What is NFT? What's the Reason for the Popularity of NFT Tokens
NFT or non-fungible tokens are now booming in the crypto space. NFT is now a concern. Because one NFT is very expensive, even though the NFT is often in the form of paintings, memes, etc. For example, there is a painting by Bepple that fetches a fantastic price of up to 6.6 million dollars.
Why is NFT so popular, the price can be so high, and some people are willing to spend their money to buy a token?
Check out the following review.
What is NFT?
NFT is simply a digitized version of a real asset. It can represent non-exchangeable assets such as collectibles, works of art or real estate, items in the world that are unique and rare.
Currencies, whether traditional fiat currencies or cryptocurrencies like Bitcoin or stablecoins, can be exchanged very easily. This is what makes them special and attractive because the value of your one Bitcoin will be equal to the value of your friend’s one Bitcoin.
But NFT is different because the value of one NFT of yours is different from the value of your friend’s NFT. For example, there will be only one NFT token for the Monalisa painting. There will only be one NFT token for the starry night painting.
The Reason Why NFT Is Popular
Here are three reasons why NFT tokens are gaining popularity.
Authenticity
NFT standardization and detailed attributes of smart contracts make each token uniquely identifiable and authentic. Users know that there is only one of each NFT in existence, so they cannot be duplicated or copied, and there is no possibility of fraud.
The transparency of blockchain technology also makes it possible to verify and prove authenticity. Counterfeiting and fraud as we know it is a big problem for many of the art or luxury goods industries. Now with Blockchain that empowers NFT, this can be prevented.
Coindesk reports that luxury brand conglomerate LVMH, owner of an iconic label Louis Vuitton, is exploring NFT and preparing to launch a blockchain so users can verify the authenticity of their luxury items that NFT provides.
Exclusive
For collectors, the scarcity and exclusivity of an item are something that needs to be considered. Because having rare items will give them a sense of satisfaction and make the items, they collect more valuable.
NFT can fulfill the desire of loyal collectors to buy work if they like it and feel that the work is worthy and very exclusive to be owned.
This is the reason why there are people who are willing to pay for assets with NFT tokens up to millions of dollars.
Celebrity Factor in NFT
Celebrities seem to be starting to get acquainted with NFT, to the point of enlivening the auction of works with NFT. For example, there is Lindsay Lohan, Mike Shinoda, to Elon Musk’s lover, Grimes.
The NBA’s latest addition to the platform is NBA Top Shot, a site launched last October for video-based virtual basketball trading cards. Top Shot has sold up to $200 million. A new record was set on Monday when 31-year-old Jesse Schwarz from Los Angeles purchased a Lebron Moment containing a clip in the final match at the Western Conference in 2019.
NFT is exciting and exciting because it’s more than just money. They take advantage of the human habit of collecting things that trigger inner satisfaction and as entertainment. These tokens can represent special and rare items but are more meaningful because their owners know they are genuine, truly theirs, and easily transferable.
NFT has opened up possibilities for both real and virtual world assets and has opened up opportunities for creators to open new revenue fields in games, arts, sports, and technology.
For those of you who want to see NFT, you can visit the OpenSea site or Rarible.com.