Non-Fungible Tokens (NFTs) are a recent innovation in the crypto world. They empower digital artists to sell their work without any need for mediators. Just like cryptocurrencies, a unique hash code is assigned to an NFT to make it a part of a blockchain. When this happens, a permanent identity of NFT is created on the Internet. Therefore, an NFT becomes a rare commodity and its price increases.
Furthermore, unlike digital images that can be copied and pasted to create multiple versions, NFTs cannot be replicated. Due to their unique properties, NFTs have become very popular amongst movie celebrities, musicians, and sports stars. From Michael Jordan to Paris Hilton, anyone worth their salt is making money by selling NFTs or creating their own platform to sell them. For instance, Tom Brady and Michael Jordan already have their NFT platforms called Autograph and Heir respectively.
NFTs Rising as Cryptocurrencies Fall
At the time of writing, the Ukraine-Russia conflict is creating a new divide within the world. Negativity is all around and it has even seeped into the cryptocurrency market. However, NFTs have remained immune to negative emotions and pessimistic speculations. One of the biggest reasons behind their immunity is the positivity of the star power that is behind them. Is the power of NFTs piquing your interest and you are looking to buy one or create one of your own? If yes, then check out some of the latest trends that are dictating the fate of Non-Fungible Tokens.
NFT Trends Dominating the World
With the launch of revolutionary Web3 on the horizon, it is an excellent time to understand how NFTs are being used worldwide. Let’s have a look at some trends:
NFTs Used for Donations and Charities
Not so long ago, Beeple, the digital artist accredited with designing the most expensive NFT ever, auctioned his famous collection OceanFront for a whopping $6 million. The money earned from the auction was donated to the Open Earth foundation, which stands for the cause of saving the planet from adverse climate change. On similar lines, Ellen DeGeneres – a popular American TV show host – raised over $30,000 via her NFT auctions. The money was donated to a flood-relief foundation called World Central Kitchen.
As NFTs earn huge sums of money for artistic-minded people (who are not materialistic like entrepreneurs), there is a high likelihood that these people will donate wholeheartedly and make the world a better place. We are already seeing multiple examples of such incidents, which are only going to increase in the near future.
NFTs Used as Status Symbols
Since Twitter announced hexagonal profile pictures, NFTs have become a way of showing one’s stature. Celebrities and the general public who own NFTs from the highly coveted BAYC and CryptoPunk collection are flaunting them online. Stars like Eminem, Justin Bieber, and Serena Williams are happy to exhibit their NFTs. And, who can blame them? These NFTs have required them to break the bank, and it would be a disservice to these precious NFTs if they decide to keep them hidden in their digital locker.
NFTs are Benefiting Artists Long After their Sale
In the past, digital artists used to sell their creations for significantly less money because they had an urgent need for cash. As a result, after-sale profits were earned by mediators or non-artists who had no role in creating digital art. But NFTs are changing this situation.
If an artist sells a piece of digital art at a specific price and later on the price for the art increases, the artist will still be able to get royalties from the subsequent sales. This is only made possible because of NFTs. With Non-Fungible Token, artists will always get their share of the dues even if they initially make a wrong selling decision.
NFT Art Sold as Souvenirs and Collectible in Physical and Virtual Form
Picasso’s heirs are selling the legendary painter’s art in the form of NFTs. It is an innovative way to sell art in physical and virtual forms. For instance, Picasso’s granddaughter and her son are auctioning 1,010 non-fungible tokens of a ceramic bowl painted by the maestro., which hasn’t been seen before. Apart from being sold as NFTs, the artistic bowl will also be auctioned separately on Sotheby’s.
Such sales are setting precedents that can be followed in the future. For example, one can sell a family heirloom as a virtual NFT instead of selling its ‘physical’ version. Therefore, it will be possible to keep hold of the asset with sentimental value and at the same time earn from the sale.
NFT Subscriptions Wiping Out Pesky Middlemen
Middlemen have remained a problem for artists for a very long time. But with the evolution of NFT subscription models, things are changing fast, and it seems possible that mediators will be completely wiped out in the art world.
Some popular subscription models, such as the one initiated by Loud Market, are helping musicians earn their due rewards. For instance, the Loud Market platform allows musicians to directly release their songs via a subscription model to the fans. Moreover, as there is no go-between involved, there is no money lost for the musician, and even the buyers don’t have to pay more than what is necessary.
NFTs are bringing revolutionary changes to the digital art world. As per Chainanalysis, by the end of 2021, the total sales volume of NFTs had already crossed $27 billion. In 2022, NFTs are breaking new barriers as celebrities like Snoop Dogg, Justin Bieber, and Paris Hilton are jumping on the NFT bandwagon. Although mostly NFTs have improved the world as a whole, we are also seeing thefts, pyramid schemes, and money washing done via NFT platforms. However, with the launch of Web3, better regulations, and improvement in the security of NFT selling platforms, we can expect more good things from NFTs.