Digital Assets: To defend NFTS

Almost half a million dollars for a cartoon monkey is exactly what could be expected from celebrities with too much money.

lively deals for non -funny tokens such as buying Eminape by eminem ensure a hype. They also suspect. NFTS have many characteristics of a fashion. In the worst case, they act like a snowball system. But despite the excess of many projects, some of them could still have a value.

One year after the artist BEEPLE sold an NFT for $ 69 million, the number of 250 million available on the OPENSEA marketplace has reached, which was boosted by the support of celebrities and the interest of risk capital from the Silicon Valley, the Facebook mother company Meta and the Musik Streaming platform Spotify.

This popularity does not make pricing easy. The best known for the monkey profile images of the Bored Ape Yacht Club are rather receipts or collectibles than art. For example, they do not offer exclusive access to images. If someone wants to look or do a screenshot, they can do that. The NFT is a transfer of a transaction using blockchain technology, which means that it cannot be replicated or changed.

High prices for the cryptocurrencies used to trade NFTs contributed to the market last year. According to the data company Chainanalysis, investors spent more than $ 44 billion. Now the prices fall. This remains an unregulated market on which unscrupulous sellers can increase prices by offering their own NFTs. The Ethereum network in which sales are recorded is notorious for high CO2 emissions. And the market is concentrated. The two most valuable NFT collections, Bored Ape Yacht Club and Crypto punks, belong to a company, Yuga Labs.

What happens next depends on whether Yuga Labs and others can maintain public interest. Not all NFTs will survive. But recognizable brands could. Deputy such as the digital social club from Bored Ape helps. The change to other entertainment areas increases the value of intellectual property. Yuga Labs is supposed to work on a project that NFTS could transform into gaming characters. The monetization of digital assets is only at the beginning.