Strange phenomenon: Spending millions of dollars to buy clips that can be viewed for free online, hoping to change your life by owning “rare goods”

Tram Ho

From works of art to sports trading cards, there is a wave of collection of virtual objects in the world causing people to withdraw their wallet to spend millions of dollars.

The digital collection craze is growing in popularity. Recently, a clip created by an artist named Beeple, whose real name is Mike Winkelmann, was purchased for up to $ 6.6 million even though it was only 10 seconds long. One of the thousands of avatars in the CryptoPunks meme series is also sold for up to $ 2 million.

These are the best examples of NFT (non-fungible tokens, which are irreplaceable tokens), a new form of digital asset that is becoming a fever in the world of digital money. Proponents of the NFT claim that they help solve one big problem on the Internet: artists are not getting paid when the content they create is used rampantly on the Internet. But at the same time opponents of the NFT fever warn this is a new speculative bubble that will soon die.

Hiện tượng lạ: Bỏ hàng triệu USD mua những clip hoàn toàn có thể xem miễn phí trên mạng, mong đổi đời nhờ sở hữu hàng hiếm - Ảnh 1.

So what exactly is NFT? Why are they suddenly being sold for millions of dollars?

What is NFT?

NFT is a new type of digital asset. Ownership of these assets will be recorded using blockchain technology, on a ledger that works similar to the network that supports bitcoin and other digital currencies.

However, unlike most cryptocurrencies, you cannot trade and exchange NFTs in the same way as you can exchange for dollars or gold bars. Each NFT is unique and from the original design made them impossible to copy and became scarce.

You can imagine the NFT as the digital version of rare items in collections.

The Internet makes it possible for anyone to view free pictures, videos and listen to songs online. Buyers of NFTs believe that they will absolutely prove their ownership of a virtual item thanks to blockchain technology.

NBA Top Shot, a platform tied to the NBA, allows users to buy and sell short clips summarizing matches played by famous players. The NBA sells the rights to Dapper Labs, a startup that produces limited numbers of clips to create scarcity. According to CryptoSlam, NBA Top Shot has grossed more than $ 280 million so far. Dapper Labs gets a commission per transaction, while the NBA raises royalties.

Basketball is not the only sport that participates in this “movement”. Sorare is a French startup that allows users to collect and use officially licensed football cards in games. The company generated more than $ 22 million in revenue and last week raised $ 50 million from investors including Alexis Ohanian, the founder of social network Reddit.

According to Lars Rensing, CEO of the Protokol blockchain company, tokens and collectibles have always been an important source of revenue for sports clubs.

Hiện tượng lạ: Bỏ hàng triệu USD mua những clip hoàn toàn có thể xem miễn phí trên mạng, mong đổi đời nhờ sở hữu hàng hiếm - Ảnh 2.

Why is NFT so popular?

The Covid-19 pandemic played an important role in the NFT fever. Last year, the total value of NFT transactions quadrupled, to $ 250 million. Blockades cause people to spend more time online and also save money. The dynamics of this wave are similar to the rise of individual investors on Wall Street.

At the same time, bitcoin, ether, and other cryptocurrencies increased in value too strongly and reduced newcomers’ opportunities to access the crypto market. Last month, bitcoin’s market value surpassed the $ 1 trillion mark.

Skepticism

Many investors buy NFTs and treat them as speculative assets in the hope that they can be sold at a much higher price. However, more and more people want to keep them long-term, considered real collections.

Like any craze in the tech world, we’ll start with speculation and often those fevers are the premise of fundamental values ,” said Nadya Ivanova, COO of L ‘ Atelier told CNBC. ” NFT started in 2017, and by 2020 the market has matured .”

NFT also attracts celebrities like Mark Cuban, Lindsay Lohan and Gary Vaynerchuk. People are also discovering new uses for NFT, such as virtual real estate and video games.

Many people compare the current NFT craze to the 2017 ICO craze where the bubble will eventually burst. Of course the companies behind these digital assets disagree. ” I think 99% of projects will no longer exist in 2-3 years, similar to the previous ICO boom ,” WhaleShark said.

Many NFTs are priced in ether. Last month, this currency set a record of more than $ 2,000 before plunging down to about $ 600 just a few days later.

Consult CNBC

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Source : Genk