Collectible crypto-projects, also known as NFTs (Non Fungible Tokens), follow the course of cryptocurrencies in recent months and see their value increase day by day.
These are collectible works that one would not think cost several million dollars and yet just last week, a video clip with free images, by digital artist Beeple (Michael Winkelman) was auctioned for $6.6 million, while its value was initially estimated at $67,000.
At the same time, one of the thousands of CryptoPunks digital avatars was recently sold for $2 million, while a crypto-rendering of the ‘Nyan Cat’ meme from distant 2011,was sold for $590,000 in a recent online auction, according to information of CNBC.
What are Non Fungible Tokens (NFTs)?
NFTs, or non-fungible tokens, are digital “assets” that can consist of a wide range of tangible or intangible objects, works of art. These non-marketable brands can be collectible sports cards or a digital property or even digital sports shoes. The list can be endless, as to create an NFT, the imagination of its creator or any of its “objects” is enough.
One of the many benefits of investing in digital assets like this, as opposed to a real, tangible collectible, is the information that accompanies an NFT and makes it completely different from any other NFT, which helps a lot, verifying its creator and reducing the possibility of fraud.
Unlike traditional cryptocurrencies, NFTs do not allow direct exchanges and transactions. An easy example to understand their nature is concert tickets. Each ticket has specific information on it, such as the name of the creator, the company, the name of the owner or buyer, the date of the concert and the place where it will take place, Coinbase explains.
In this way the production company ensures that the respective ticket cannot be used again for any other concert or other commercial purpose. In the same way, an NFT can change hands only through auctions as a collector’s item.
