Digital assets: the fun of non -fungible tokens

Not funnigible tokens may not sound aesthetically appealing, but they have changed the market for contemporary art. The prices set out records this year when Bitcoin reached an all -time high. However, the future growth of the NFT market will probably be based on players and not from aesthetes.

nfts can range from pictures to videos to animations and tweets. There is a claim for ownership. A digital identifier is recorded on the Blockchain. Physical objects that support the digital counterpart can exist, but do not have to. What matters is authenticity. Everyone can replicate or display a digital image, but there is only a real owner.

The NFT market is already worth around $ 15 billion, according to the Dapradar analysis platform, compared to a few hundred million dollars in the previous year. Jefferies analysts assume that it could be worth almost $ 80 billion by 2025.

gaming nfts should drive this growth. Axie Infinity, an NFT-capable online video game that was developed by Vietnamese Studio Sky Mavis in 2018, includes that players acquire cute pet characters and fight with them. It has generated almost $ 3 billion in transactions and now has almost 1 million players.

NFTS act on exclusivity in the art world. Digital art collections such as cryptopunks and bored ape have only a few thousand owners. The transaction volume of Gaming NFT is much higher. The greatest sales may be works of art, but the highest volumes are in the gaming area.

players have been spending large sums for in-game purchases for years. NFT purchases are characterized by the fact that they require cryptocurrency. Transactions are often made with your own tokens of a game that can be converted into Ethereum and then into the player's home currency. Axies token is called AX.

Since NFTs are becoming increasingly popular, the potential for abuse increases. There are concerns that they could be used for money laundering. In addition, fraud is still possible with blockchain technology in the tokenization phase. The NFT investor Pranksy found this when he bought a Banksy nft for $ 341,000, which turned out to be fraud.

This is the sixth article in the week of Lex notes on digital assets. We also covered Bitcoin prices , Investment research , Bitcoin-ETFS , and token Securities .