Daily

NFTs 101

a look at the new marketing darlings (or scams, depending who you ask)

NFTs – which stand for non-fungible tokens – are a controversial crypto asset that has been a hot topic across the internet. Some believe it’s the future, an innovation that will redefine everything from real estate to music to money; others think it’s a modern-day MLM scheme. Today, we’ll be digging into the good and the bad of (in)famous NFTs and their implications for the future of culture.

ALPHA MILLIONAIRES

Being a 12-year-old self-made millionaire is not a feat that could have been imagined years ago – let alone a kid achieving it in less than a year. But this is indeed the case for London tween Benyamin Ahmed, who transformed his affinity for whales into a million-dollar collection of NFTs consisting of 3500+ Python-generated pixel art depictions of whales called Weird Whales. Benyamin, who learned how to code at age 5, was even invited to be the youngest person to give a guest lecture at Pembroke College Oxford University. We can see this becoming an example of what Gen Alpha will bring to the table when it comes to innovation.

ENVIRONMENTAL BACKLASH

While NFT technology provides an opportunity for artists and collectors to engage in a new sort of transaction, the environmental impact NFT's "proof-of-work" (PoW) mining can have on the planet's CO2 emissions has been brought to the public's attention recently, and the internet has opinions. Unsurprisingly, this backlash has kept many artists from creating and distributing digital pieces until all the marketplaces switch to greener blockchain options, like "Proof-of-Stake," which considerably lowers the carbon footprint of the transactions.

FUTURE OF BRANDS & NFTS

From bafflement to curiosity, brand relationships with NFTs have seemingly evolved by the second. Literally every day we hear about another big name jumping into it, but in such a crowded space, differentiation becomes vital. We predict the sweet spot of these efforts will come from the creative use of the non-fungible tokens. More than a simple collection item with monetary value, the most memorable players will bring exchanges that carry experiential weight, like the NBA All-Access VIP NFT, customization opportunities like Crypt TV's Monster Fight Club, or innovative collaboration creations like the Adidas for Prada NFT user-generated project.