NFTs (nonfungible tokens) are having a moment right now. Tons of digital collectibles have been traded, including Dapper Labs’ NBA Top Shot, which raked in $1.05 million for just one recent pack of basketball videos, and Everydays: The First 5000 Days, a digital image by artist Mike Winkelmann (aka Beeple), which sold for $69.3 million at high-end auction house Christie’s.
NFT transactions tripled in 2020, reaching more than $250 million, according to the Non-Fungible Tokens 2020 Yearly Report from NonFungible and L’Atelier. And they show no sign of slowing in 2021. But the big money currently being thrown around for single pieces leads to overall misconceptions about the cost and value of NFTs and their place in the market.
As CEO of digital-assets marketplace Blockparty I help artists and brands create and market NFTs. These are the biggest myths I encounter about the technology.
“NFTs are complicated”
NFTs are a type of cryptographic token that signifies true ownership of…