Heard people talking about NFTs and wondering why images of monkeys are selling for so much? In this blog we will explain it.
A Simple Explanation Of The Value Of NFTs
An NFT (Non-Fungible Token) is a crypto token that authenticates ownership of a unique asset. It is true, many come in the form of monkeys, punks or the like. But thinking more broadly, the real value of NFTs is in what else ownership of that unique token may represent, be it membership to an exclusive club, a ticket to a concert, or perhaps proof of ownership of land.
Bored Ape Yacht Club is one of the most successful NFT projects on the planet. Already trumping $2.3b in sales, it comprises 10,000 unique tokens of apes looking, well, bored. It’s new-world digital art gone through the stratosphere! The entire gamut of tokens sold out in under 12 hours at their launch price of $190 or 0.08 ETH. Celebrities like Jimmy Fallon, Steph Curry and Post Malone added credibility to the project by buying in. You’ll now be needing around 91 ETH or around $140,000 for the cheapest one. That’s an expensive bunch of pixels. But as it turns out, the BAYC is more than just a digital miniature art gallery. Owners of their NFTs are holding get-togethers. It started with Ape Fest 2021, a weeklong celebration for owners which culminated in a lavish warehouse party in Brooklyn, where Lil Baby, Questlove, the Strokes, Chris Rock and Aziz Ansari performed. Mutant owners (spinoff project Mutant Ape Yacht Club) and their partners were also on the door list for the 2000-strong affair but otherwise it was no NFT, no entry. It’s obvious BAYC is not just about digital art but a club offering exclusive events and concerts and even has its own streetwear brand.
The Sky’s The Limit
So now you can see how BAYC is leveraging the power of NFTs, it really is only imagination limiting the boundaries of their potential use. Canadian singer Grimes sold the NFT for her video “Death of the Old” for $389,000. Sure, you can watch it on YouTube or any number of other sites but only one presumably super fan now owns it. The best way to understand the uniqueness of NFTs is to think about a digital ticket for a concert. Let’s say you have it on your iPhone which you leave at your desk and while you are gone for a moment or two, someone texts or emails that ticket to themselves. Assuming they get to the concert that night before you, they are going to be admitted and you won’t be because your ticket will have already been used. We’ve all seen the warnings, “treat your ticket like cash”. This scenario can’t happen with an NFT on the blockchain because you can’t copy it, it is non-fungible or non-replaceable. NFTs are a vehicle for selling and proving ownership of something. What that something is could literally be anything.
Potential Uses for NFTs
Web3 is all about ownership while blockchain technology and their cryptocurrencies bring decentralization and security to the table. NFTs encompass all of this. Their potential applications include but are not limited to:
- Ownership of digital or physical assets
- Gaming applications
- Loyalty rewards or points
- Identity verification
- Intellectual property
- Authenticity of products
- Supply chain management
- Real estate ownership
- Medical records
- Academic qualifications
Want To Know More About The Potential Of NFTs?
We’ve made it super easy to get up to speed! Just sign up for our Web3 Made Easy Webinars, and get ready for the new world or Web3.