The crypto world has skyrocketed in the last several years, with more cryptocurrencies available than ever before and their blockchain networks being utilized globally. With the boom in cryptocurrency came the introduction of NFTs to the digital marketplace. The NFT marketplace is highly lucrative and gaining popularity among collectors and celebrities like Snoop Dogg and Justin Bieber. But what is an NFT, and why are these celebrities dropping hundreds of thousands on these digital artworks? Here’s what you need to know about NFTs.
What are NFTs?
Non-fungible tokens, or NFTs, are encrypted digital assets that can be bought and sold on blockchain networks. NFTs are all unique and can represent real-world assets, smart contracts, or digital assets. Most commonly, NFTs have been used to encrypt original digital artworks, but they can be used for any digital file type. Videos, music, gifs, in-game items, and more can be minted into an NFT and sold through an NFT marketplace such as FTX. The traditional art market can be inaccessible and complex for new investors. However, with NFTs, art can be bought and sold online quickly, allowing anyone to diversify their digital portfolio with NFT assets.
The Digital Art Market
The use of NFTs helped digital artists solve problems of provenance and valuation. Before NFTs, an artist had little control over their intellectual property once uploaded to the web. By minting an artwork or piece of music or any other digital file into an NFT. The artist encrypts the original code of the file and their own name and information as the creator. This NFT is unique, and it is sold across the blockchain. The artist’s name will always be associate with the work, and the piece’s originality will never be questioned. With these new security measures and the ability to verify the rarity and originality of digital files, the NFT marketplace has jumped from $95 million in 2020 to $25 billion in 2021. Now, collectors of all economic backgrounds and artists across digital mediums can participate in a highly lucrative marketplace.
Why are Celebrities Buying In?
Celebrities’ NFT investments go beyond simply purchasing NFTs as collectors. While Snoop claims to be a high-profile collector, his motivation for entering the crypto space is to give back to the community. According to FTX, Snoop “hopes to improve the lives of African American youth nationwide by ensuring they have access to the same opportunities as other youth in America and around the globe.” Snoop Dogg isn’t the only celebrity going ‘all-in’ in the NFT marketplace. Steve Aoki launched his own NFT membership community to encourage users to experience the metaverse. Justin Bieber is another notable collector of NFTs. As is NBA star Steph Curry who also started his own NFT collection celebrating his breaking of the NBS 3-point record. There’s no doubt that celebrities are buying into the NFT marketplace big time. Digital media is one of the most popular art forms today; with videos, music, games, digital art, and more being minted into NFTs. It’s no wonder so many creators and celebs are investing in these unique digital assets. NFTs are becoming a cultural icon as technology influences entertainment industries, from music to video games and more.
The NFT world continues to grow every day, offering new opportunities for collectors and artists to succeed. If you’re interested in learning more about the NFT marketplace. Visit FTX to see which NFTs are high-performing and how you can get started purchasing NFTs.
