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What is an NFT?

Learn more about NFTS and how to trade in them with this video.

mercredi 2 mars, Il y a 23 mois
 5 min

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“NFT” is an acronym that stands for Non-Fungible Token. In a digital world where every file is reproducible, Non-Fungible Tokens are a special kind of digital file that represents a single unit of value.

NFTs work as verifiable assets with unique identifiers and attributes that give them worth. They are an individualized digital commodity that can’t be exchanged for another asset, but only for themselves. This is what being “non-fungible” means —and why non-fungibility matters in crypto.

Because NFTs are one-of-a-kind, they can be used to value and authenticate the ownership of digital assets, including virtual land parcels, artwork, etc. One of the biggest markets for NFTs is the entertainment industry.

In 2021, the volume of NFTs being traded in Q3 went up by 38,000% compared to the same period last year. According to DappRadar, the monetary value of these tokens exceeded $10.6bn.In August alone, OpenSea, one of the biggest NFT marketplaces, reported a trading volume of more than $75m in a single day. This is more than its trading volume for the whole of 2020.

The top three highest grossing NFTs to date are works of CryptoArt created by Beeple. His piece Everydays: The First 5000 Days sold at auction for over $69m, making him the third most expensive living artist behind David Hockney and Jeff Koons.

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