The world of cryptocurrency is constantly discussing digital collectibles (NFTs) which are unique virtual symbols that can represent anything.
People pay hundreds of thousands of dollars for these NFTs (non-fungible tokens). Sheldon Corey, an investor from Montreal, Canada, told CNBC that he paid $ 20.000 for one of thousands of avatars called CryptoPunks.
CryptoPunks is not a new phenomenon - it was released by the developers of Larva Labs in 2017. But recently its popularity has increased after only in the last few days its profits reached $ 45,2 million according to the website NonFungible.
CryptoKitties, one of the original NFTs, earned $ 433.454 last week, according to NonFungible. Digital cats, developed by a start-up company called Dapper Labs, were once so popular that they "blocked" the ether digital currency network.
The NBA Top Shot, a platform created by Dapper Labs in collaboration with NBA, has raised $ 147,8 million in sales over the past seven days, according to CryptoSlam's NFT data monitoring program. The service allows users to buy and sell small clips that show the best playing moments of top basketball players.
Even Mark Cuban and other celebrities have gone NFT crazy. The billionaire a few days ago auctioned some digital goods on the internet.
The increased momentum for these tokens comes as bitcoin and other cryptocurrencies have skyrocketed in recent months and at a time when people are spending more time indoors due to social constraints on COVID-19.
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What are NFTs?
NFTs are non-fungible tokens that run on a blockchain network, a digital ledger that records all transactions from cryptocurrencies such as bitcoin.
The difference with bitcoin and more Tokens is that each NFT is unique and cannot be played. Everyone accumulates value independently. Crypto-investors say that NFTs derive their value from how rare they are. They are stored in digital wallets as collectibles.
Nadya Ivanova, CEO of research firm L'Atelier, which is affiliated with BNP Paribas, says digital data collection (NFT) can be considered a better version of an MP3 file. Musicians have struggled to maintain their income in the digital age, and Ivanova says some are turning to the NFT to prove ownership of their work and find an additional source of income.
The total value of NFT transactions quadrupled last year (to $ 250 million), according to a study by NonFungible and L'Atelier. The number of digital wallets traded nearly doubled to more than 222.179, with some traders managing to raise more than $ 100.000.
Source of information: cnbc.com