What is an NFT, and why is the non-fungible art marketplace worth millions?

What is an NFT, and why is the non-fungible art marketplace worth millions?

Digital collectibles, known as «NFT», have become very popular lately. Singer Grimes became an artist in the NFT gold rush, selling nearly $6 million worth of digital artworks after they went up for auction. A series of 10 pieces — some one of a kind, others in thousands of copies — went on sale at Nifty Gateway on Feb. 28. The best-selling piece was a unique video called “Death of the Old”, featuring flying cherubs, a cross, a sword and a glowing light that is set to Grimes original song. The auction winner took it for nearly $389,000.

After a slow rise in popularity over the past few months, NFTs have risen sharply in the last couple of weeks.

NFT or Non-Fungible Token is a special type of cryptocurrency that is unique and not interchangeable. A Non-Fungible Token allows buyers to acquire ownership of a digital commodity, usually an image, animation or video, in the form of a unique digital token that lives on a blockchain. NFTs allow buyers to support artists.

NFTs are also a speculative asset, and many trading venues have emerged offering the ability to resell them — theoretically at a much higher price while the hype around NFTs continues.

Grimes is not the only artist who has already made great strides in NFT. Digital artist Bipple sold $3.5 million worth of artwork through Nifty Gateway last year. The artist behind Nyan Cat made about $600,000. And electronic musician 3LAU reportedly made more than $11 million from album and digital merchandise sales this weekend alone.

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