It’s pretty fashionable to dance on the grave of NFTs these days. Social media abounds with people laughing at the jpegs of zoo animals that sold for thousands of dollars a few years ago. But I’m here to poop that party. Because, I believe NFTs are not only here to stay, but they will kickstart a new era of creative expression, economic efficiency, and digital culture.
Let’s start with some facts. NFTs have been growing in popularity and value in recent years, especially in 2021 and 2022. According to the data from NonFungible.com, the NFT market size reached $10.7 billion in the third quarter of 2021, up from $1.3 billion in the second quarter.
And, while the downturn has been admittedly harsh, there are some exciting trends emerging in recent months. Take generative artwork, which is created by an algorithm or a computer program based on inputs from the artist or the collector, like Art Blocks, which lets users mint unique pieces of art on the Ethereum blockchain, and Otherside, which generates psychedelic portraits of celebrities and historical figures.
Or what about fractionalizing valuable collectibles? This is a process of dividing a rare or expensive NFT into smaller pieces or fractions, which can be traded or owned by multiple people. This allows more people to access and invest in high-value NFTs, which they otherwise could not afford. Examples of fractionalized NFTs are DAO Records, which owns a copy of Wu-Tang Clan’s Once Upon a Time in Shaolin album, and Fractional, which enables anyone to create and trade fractions of any NFT.
And so-called smart money is getting involved. Established companies are creating their own digital collectibles, or collaborating with existing NFT communities. This shows the growing mainstream recognition and adoption of NFTs as a new form of digital expression and engagement.
Take Visa, which bought a CryptoPunk for $150,000, Coca-Cola, which auctioned off four NFTs for charity, and Marvel, which launched its own NFT marketplace for comic book fans. Or my recent project: The Velocity Pass, an exclusive NFT that gives holders access to a series of digital artworks created by world-class artists.
The artworks are inspired by Oracle Red Bull Racing’s RB19 race car and the Formula One World Championship. The Velocity Pass is a limited edition of only 1,000 NFTs and will evolve over the course of the race season, with each new drop reflecting the thrills and spills of each race.
There are four collaborating artists in this series. So far we have revealed works from Rik Oostenbroek, Per Kristian and Erick “Snowfro” Calderon and the last artist will be revealed soon.
For too long, artists have struggled to receive fair compensation for their work in the digital realm. NFTs offer a lifeline, enabling creators to retain ownership and receive royalties for their art in perpetuity. This paradigm shift empowers artists to break free from the shackles of traditional intermediaries, putting the power and profits back into the hands of those who create.
Furthermore, NFTs have the potential to revolutionize the way we think about ownership and property rights. With blockchain technology at their core, NFTs provide indisputable proof of ownership, eliminating the need for cumbersome paper trails and legal disputes.
This has far-reaching implications beyond the art world, from real estate to intellectual property rights. Imagine a world where disputes over ownership are virtually nonexistent, where property rights are as secure as the blockchain itself.
“The obituary for NFTs is premature at best and, at worst, a misunderstanding of the transformative power of these digital tokens. The evidence is clear: NFTs are reshaping our concept of value, ownership, and creativity” – Anndy Lian, head of partnerships at Bybit.
Source: https://blog.bybit.com/en-US/post/no-nfts-are-not-dead-blt723d571c62a7a08b/
