Aseem Gujjar & Partha Sinha | TNN
In March 2021, a 1961 oil painting by VS Gaitonde sold for more than $5 million, becoming the most expensive Indian art ever sold. That same month, auction house Christie's sold its first digital artwork for $69 million, not only setting a record but also instantly popularizing blockchain applications known as NFTs.
NFTs (Non-Fungible Tokens) are unique digital items stored on the blockchain, the same network that runs cryptocurrencies. Anything digital can be turned into an NFT and monetized: images, videos, music, and even the online version of this article. NFTs are not digital art, they are certificates of authenticity, and most of them use the blockchain of Ethereum, the second largest cryptocurrency. Like cryptocurrencies, trading NFTs does not yet have a legal backing. The lack of regulation also means that price manipulation is more likely.
Increased internet usage and growing interest in cryptocurrencies are driving the popularity of NFTs. “Many consumers who had invested in cryptocurrencies discovered NFTs as a new investment avenue. The popularity of NFTs has also increased as celebrities such as Twitter co-founder Jack Dorsey, Paris Hilton and Snoop Dogg have sold NFTs,” said Sumit Ghosh, CEO and co-founder of Chingari, an NFT marketplace launched in October 2021 by Salman Khan.
Beyond art and memorabilia collectors, others are interested in NFTs for speculative purposes, as the value of a token is determined by how much a buyer is willing to pay for it. “The rise in cryptocurrency market cap and adoption by mainstream users has led to a rise in the popularity of NFTs,” said Santosh Yerajosla, a member of the Blockchain and Crypto Asset Council (BACC) and chief ecosystem officer at Xfinite. He added that the NFT market may see a correction in the short term.
The surge in interest in digital art during pandemic lockdowns has helped NFTs reach a wider audience than even those who are not big cryptocurrency supporters.
NFTs allow digital content creators and IP (intellectual property) owners to monetize their creations and assets without an intermediary and earn royalties every time the NFT is resold. “NFTs make digital assets scarce and verifiable. NFTs fragment digital content, make it tradeable and make IP liquid,” said the CEO of an Indian sports NFT company.
The world's most expensive NFT, sold by Christie's, is a collage of 5,000 photographs by American artist Beeple that anyone can download and “view,” but only one person can actually “own” it. That ownership data is stored as an NFT on a decentralized blockchain network.
According to Reuters, NFT sales in 2021 rose to $25 billion, up from $95 million the previous year. But what caused this surge in crypto ownership? Industry insiders say that in an increasingly online world, “bragging rights” in the form of NFTs are also going digital.
Top brands like Coca-Cola and Gucci have also jumped on the trend and sold NFTs in 2021. In November, Amitabh Bachchan auctioned a recorded version of his poem “Madhushala.” Other celebrities like Salman Khan and Sonu Nigam have also launched NFT collections.
For the latest cryptocurrency news, visit www.TimesDecrypt.com.
In March 2021, a 1961 oil painting by VS Gaitonde sold for more than $5 million, becoming the most expensive Indian art ever sold. That same month, auction house Christie's sold its first digital artwork for $69 million, not only setting a record but also instantly popularizing blockchain applications known as NFTs.
NFTs (Non-Fungible Tokens) are unique digital items stored on the blockchain, the same network that runs cryptocurrencies. Anything digital can be turned into an NFT and monetized: images, videos, music, and even the online version of this article. NFTs are not digital art, they are certificates of authenticity, and most of them use the blockchain of Ethereum, the second largest cryptocurrency. Like cryptocurrencies, trading NFTs does not yet have a legal backing. The lack of regulation also means that price manipulation is more likely.
Increased internet usage and growing interest in cryptocurrencies are driving the popularity of NFTs. “Many consumers who had invested in cryptocurrencies discovered NFTs as a new investment avenue. The popularity of NFTs has also increased as celebrities such as Twitter co-founder Jack Dorsey, Paris Hilton and Snoop Dogg have sold NFTs,” said Sumit Ghosh, CEO and co-founder of Chingari, an NFT marketplace launched in October 2021 by Salman Khan.
Beyond art and memorabilia collectors, others are interested in NFTs for speculative purposes, as the value of a token is determined by how much a buyer is willing to pay for it. “The rise in cryptocurrency market cap and adoption by mainstream users has led to a rise in the popularity of NFTs,” said Santosh Yerajosla, a member of the Blockchain and Crypto Asset Council (BACC) and chief ecosystem officer at Xfinite. He added that the NFT market may see a correction in the short term.
The surge in interest in digital art during pandemic lockdowns has helped NFTs reach a wider audience than even those who are not big cryptocurrency supporters.
NFTs allow digital content creators and IP (intellectual property) owners to monetize their creations and assets without an intermediary and earn royalties every time the NFT is resold. “NFTs make digital assets scarce and verifiable. NFTs fragment digital content, make it tradeable and make IP liquid,” said the CEO of an Indian sports NFT company.
The world's most expensive NFT, sold by Christie's, is a collage of 5,000 photographs by American artist Beeple that anyone can download and “view,” but only one person can actually “own” it. That ownership data is stored as an NFT on a decentralized blockchain network.
According to Reuters, NFT sales in 2021 rose to $25 billion, up from $95 million the previous year. But what caused this surge in crypto ownership? Industry insiders say that in an increasingly online world, “bragging rights” in the form of NFTs are also going digital.
Top brands like Coca-Cola and Gucci have also jumped on the trend and sold NFTs in 2021. In November, Amitabh Bachchan auctioned a recorded version of his poem “Madhushala.” Other celebrities like Salman Khan and Sonu Nigam have also launched NFT collections.
For the latest cryptocurrency news, visit www.TimesDecrypt.com.
