NFTs or ‘Non-Fungible Tokens’ are a bizarrely logical evolution of the cryptocurrency craze. The same technology that bitcoin uses to guarantee authenticity and track ownership, AKA the blockchain, has been applied to unique pieces of digital art.
Although these NFTs lack inherent value, much like a trading card, their verifiable rarity makes gives them value to collectors.
The underlying mentions reveal just how massive this phenomenon has become in a short period of time. Over the past 90 days, consumer chatter relating to non-fungible tokens has risen by more than +1000% (!) on a 30d moving average. Today, a new record was set with an NFT fetching $60 million dollars at auction.
We’ll be watching this trend closely going forward, because there’s no guarantee that these scarce digital artifacts will maintain their value when less people care about them. Buyer beware!