In February 2022, the most expensive NFT artwork in the world sold for $91.8 million. And yet it’s just one of the many NFT artworks that collectors and investors have snapped up for millions of dollars. NFTs have built a reputation linked to art pieces or concepts sold at extremely high prices. But at the bottom of it all, what are they?
ReBlonde, specializing in PR services for crypto and blockchain-related content, often gets questions from businesses and professionals who want to enter the NFT market. A company may want to start getting into the business of NFTs themselves or consider investing in an NFT platform.
But as with any financial undertaking, it’s essential first to have a thorough understanding of what is being sold and how it is purchased.
Defining the NFT
“NFT” stands for non-fungible token. “Non-fungible” means “unique or cannot be replaced.” For purposes of comparison, consider a bitcoin, which is fungible. This means that entities can trade bitcoin for digital services, items, and even real estate.
However, an NFT is more similar to a unique collector’s item, such as a painting in the Louvre. Since it’s one of a kind, it cannot be swapped or traded like-for-like.
What does it mean to own an NFT?
Online digital media can be easily reproduced. For example, you can download a photo or a video from the internet in seconds. However, when you own an NFT, you own that specific piece of art or media.
For example, anyone can go online and download a picture of the Mona Lisa. However, as made by the artist, the original piece is still the one housed in the Louvre. In the same way, any digital media file can be put into an NFT and therefore made unique through a digital license. This renders the art piece as the original by the artist and expressly owned by one person or one company.
How NFTs are purchased
It’s not just artwork that gets turned into NFTs. Musicians are now making NFT songs, and even in-game purchases in video games (playable content such as weapons or skins) are now available as NFTs.
Once you find a platform and an NFT you want to buy, you’ll need a crypto wallet that caters specifically to the platform you found that NFT in. For example, if the NFT platform uses Ethereum, you’ll need a crypto wallet with Ethereum and purchase it that way.
Keep Up With the Crypto Marketplace
If your company plans to purchase or sell NFTs, it’s always important to consult with professionals. The NFT marketplace is rapidly filling up as more businesses gain a foothold in this highly lucrative and exciting market. You will need to understand how NFT marketplaces work and how best to utilize NFTs to meet your business goals.
ReBlonde Public Relations has a dedicated team that handles NFT projects and promotions, with extensive experience in market NFTs and making them stand out in a crowded market. Book a free consultation with us today to get started, or read more about our NFT services.