After a short pause, Bitcoin again updated the record, breaking the round level of $60,000. However, there are stillskeptics who consider cryptocurrency a financial bubble. What about the NFT market, where a single token is valued at more than $60,000,000?
NFT (Non Fungible Token) is non-fungiblea token, an analogue of a digital signature or certificate, which can be sold or donated at the same time. The token can include different files: audio, gifs, 3D images - and a description for the uploaded content. At the same time, the creation of NFT is available to everyone, and the cost on a number of platforms is equal to the price of gas in the Ethereum network (about $ 18 at the moment).
You can add terms of sale to the architecture of the token, for example, an auction, or include the payment of royalties - a reward for each subsequent resale.
In today's world where everyone can copythe image or track you like on your PC, it is especially important to be able at any time to confirm the copyright for a particular work without intermediaries. It is this circumstance that makes NFT technology in demand. However, there were some incidents.
The above pixelated monkey recentlywas sold for $ 1.5 million. It is difficult to imagine that this kind of art object has such a value. Giovanni Colavizza, assistant professor of digital humanities at the University of Amsterdam, finds it difficult to identify a bubble when it is inside another. And writer Seth Godin calls NFT a "dangerous trap."
However, the market for non-fungible tokens has already grownin the amount of up to $400 million, and according to Messari agency estimates, it will reach $1.3 billion by the end of 2021. Currently, the most high-profile sale was the sale of an NFT for a digital painting by Mike Winkelmann (Beeple) at Christie's auction for $69 million at the starting price cost $100. This painting became the first digital work to be sold on this site.
However, market growth and high NFT prices are largelydriven by the Bitcoin rally. Some works are clearly overvalued, while others are in conflict with classical copyright. So, the publisher DC Comics asked digital artists not to use their characters (Batman, Joker and others) when creating NFT.
The NFT token market is young enough, it takestime for its inclusion in the existing art industry and legal framework. Token pricing also raises many questions, however, the technology itself provides a number of new qualities and benefits. The decentralized nature makes it possible to establish the true copyright holder in the shortest possible time, and the time taken to complete purchase and sale transactions is minutes. The cost of Bitcoin is also puzzling for many, but no one doubts the viability of blockchain technology.
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Analytical group StormGain
