Let's start by explaining what NFT is:

 NFT stands for "Non Fungible Token", which we will translate as non fungible assets.

Simply explained, we can say that they are digital certificates of authenticity. That is a unique asset that allows to buy and sell the ownership of digital items. These items can be anything digital: an image, a wearable for the metaverse, an ebook,  photo, music,  tweet or a combination of several things-such as audio and image-, the possibilities are endless. They are sold in NFT markets, such as OpenSea or Objkt.

Here are two of the best known examples:

The artist Beeple, produced a JPG of a digital collage "Everyday's - The First 5,000 Days" and it was sold for no less than $69.3 million.

Jack Dorsey, the former CEO of Twitter sold the first ever tweet in NFT format. For 2.9 million dollars (about 2.4 million euros).

What is the reason for its popularity?

NFTs were created in 2017, but became popular in the wake of the pandemic, because they give the possibility for artists to have earnings without intermediaries (such as a label, a representative, etc.). 

But beware, this is not limited to the artist, already very recognized brands made their first foray into this world, through collabs with artists or even with in-house resources.

Taco Bell:

The popular fast food chain also has its own NFT, the NFTacoBells. In order to celebrate the return of the famous Taco Bell fries, the brand launched for sale five artworks inspired by its tacos. Within about half an hour, five copies of each of the designs had already been sold.

GAP, Adidas and Gucci:

Fashion brands have created NFT collections that give shoppers exclusive access to physical pieces.

The strategy behind these initiatives is mainly aimed at keeping the spirit of community and exclusivity behind the brands active, strengthening the idea of creating fan clubs and building customer loyalty.

Event tickets:

In order to provide the experience of collecting tickets to their consumers, some brands have already decided to launch their tickets in a fully digital version. This is the case of the NFL, which decided to turn tickets to its biggest annual event, the Super Bowl, into collectible NFTs.

As you could read the NFT can be applied from a matchbox to luxury cars, the collectibles market moves billions of dollars annually and arouses the curiosity of people around the world. 

We hope that through this article we have contributed a little to the understanding of this topic. Don't forget to subscribe to our newsletter.

Sources:

• https://www.empresaactual.com/
• https://rockcontent.com/