NFT’s, or Non Fungible Tokens to the uninitiated, are, for want of a better phrase, tradable digital certificates that take the form of artwork, animation and the like and use blockchain to prove ownership.
They are one of the fastest growing collectibles particularly in relation to sporting memorabilia or art, the latter of which saw an NFT sold by Beeple for an incredible $69.3m.
Some industry insiders would have you believe that NFT’s, despite being a relative new phenomena, have already hit their peak as a result of deals such as Beeple’s.
Although average prices have dropped as much as 70 percent since February 2021, the pattern that’s been emerging is no different to that which the likes of Bitcoin saw not long after trading in the digital currency began.
The internet is awash with traders regretting wholesale transfers of their cryptocurrency, given that they’d now be digital millionaires if they’d held their nerve and ridden the storm of a few months ago.
WGP Global are steadfast in their belief that anyone with more than a passing interest in NFT’s needs to take the ‘experts’ current view with a pinch of salt. These same sounding boards were completely wrong about Bitcoin, leaving thousands of their followers completely out of pocket.
High-profile public figures such as Snoop Dogg and The Weeknd are making weekly trades on platforms such as OpenSea and NiftyGateway, indicating quite clearly that this continues to be a nascent market rather than a millenial version of the Emperor’s New Clothes.
— The Weeknd (@theweeknd) April 3, 2021
If you study the technology properly rather than taking soundbites as gospel, the scarcity of digital collectibles is precisely what will ensure that this particular use of blockchain will be a lasting innovation and not, as some would have you believe, a passing fad.
Chris Wilmer, a blockchain research journal editor and University of Pittsburgh academic, noted only this week that; “It’s not meaningful to characterise a concept as a financial bubble. ‘NFTs’ aren’t in a bubble any more than ‘cryptocurrency’ is a bubble. There will be manias and irrational exuberance, but cryptocurrency is clearly here to stay with us for the long term and NFTs are too.”
NBA TopShot trades appear to be an initial driver of NFT’s and 64 percent of trade during February 2021 came from the NBA TopShot NFT trading platform. Though the volume has dipped in the last six weeks, an upturn isn’t thought to be too far away, with more and more users of the various platforms being informed to what’s available in the marketplace.
There is plenty of evidence for investors to suggest that NFT’s remain valuable and worthwhile.
For those that are still unsure about NFT’s and don’t really understand their significance in the digital world, WGP Global have written an extensive guide here, and have experts on hand to guide you through the process.