Brian Wallace, Founder & President, NowSourcing
Unless you’re keeping up with all the newest crypto currencies and other digital investment assets, it’s unlikely you have a firm understanding of NFT’s, if you’ve even heard of them at all. Nevertheless, for anyone who is interested in investments and especially crypto currencies, you need to find out more about NFTs.
NFTs, or non-fungible tokens, are basically digital certificates of authentication that prove who created, and who now owns, a particular digital item. These tokens can be applied to any digital file and it gives that file value for buying, selling, and investing.
This is extremely useful particularly for digital artists, as digital art is not like physical art in that it can be copied exactly, and many times over. While physical art is extremely difficult to replicate exactly, digital art is not, which means that the monetary value of this artwork can be extremely diminished…unless there was a way to authenticate the original work. NFTs make this authentication possible. Not only do artists get to fully claim their work, but collectors also get to claim the original file and can then also sell it for a hefty price.
In fact, some of the first NFT sales have been in the millions and NFT sales overall are shooting up quickly. The first half of 2020 saw NFT sales reach 13.7 million dollars, but at the same time this year, NFT sales were up to 2.5 billion dollars. That huge leap isn’t too hard to understand with some of the numbers we’re seeing for one sale.
On October 31, 2020, Pablo Rodriguez-Fraile purchased the digital work “crossroads” for 66,666 dollars. Then, in February of 2021, the 10-second video clip was sold again for 6.6 million dollars.
Another huge purchase was that of the digital work “Everydays: The First 5000 Days.” It was purchased for 69 million dollars by crypto investor Vignesh Sundaresan, aka MetaKovan, and the artist, Michael Joseph Winkleman, aka Beeple. Each of them hoped to drive up the value of NFTs with this giant purchase.
Other NFT purchases, like the “Warnymph” series for 6 million, and Jack Dorsey’s digitally autographed first tweet for 3 million, show that NFTs are an important up and coming investment opportunity, particularly for those interested in crypto currencies.
About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on Linked