Non-Fungible tokens, or NFTs are a new take on blockchain technology, which has been utilized for bitcoin and many other cryptocurrencies. However, these tokens cannot be traded at equivalency and are completely unique. These tokens are used to represent real-world items including sports moments, tweets, artwork, and real-estate. Converting these items to digital tokens greatly helps the trading/buying process while also reducing fraud.
Why are they non-fungible?
The main difference between NFTs and other cryptocurrencies is that NFTs cannot be traded or exchanged at a set rate. Bitcoin and Etherium have global rates, and they are not unique. However, NFTs are completely unique and their price is determined by the seller. The reason cryptocurrencies can be used as a currency is due to this set rate, and they can be considered as a way to purchase and sell items. However, the value of the NFT is decided between the buyer and seller, making haggling possible.
Who’s creating NFTs?
Jack Doresy, the CEO of Twitter shared recently that he will be selling his first tweet “just setting up my twittr” up for bidding. The current highest bid is 2.5M USD from Sina Estavi, the CEO of Bridge Oracle. Dorsey has been a strong supporter of cryptocurrencies, announcing his partnership with Jay-Z to help start its start in Africa and India.
Robert Gronkwoski has also announced his entrance into the NFT market. ‘Gronk’ is a highly successful American football player, and he has partnered with OpenSea, a NFT marketplace, to release Super Bowl Moments highlighting moments of his career. These will be formatted into tradable cards, signed by him. He is releasing 87 editions of four different Super Bowls, for a total of 348 NFTs. Additionally, he is releasing a unique ‘refractor card’ that allows the owner to meet and greet with Gronk at an NFL game next season. They were auctioned recently at gronknft.com.