Creators are now monetizing digital works and content with a new cryptocurrency investment trend called an NFT or non-fungible token.
Twitter co-founder Jack Dorsey just made $2.5 million dollars selling his first ever tweet to a collector. It’s all part of what’s being described as a new cryptocurrency investment craze called an NFT.
The winning bidder for the tweet was Bridge Oracle CEO Sina Estavi, who reached the astronomical winning bid on a platform called “Valuables by Cent.” The platform allows Twitter users to sell their individual tweets.
The tweet, which was originally sent out via Twitter on March 21, 2006 at 3:50 PM local time, reads, “just setting up my twttr.”
What is an NFT?
NFTs, or non-fungible tokens, as the Associated Press has explained, are a type of cryptocurrency which allows artists to create verifiably-unique originals of their work, while protecting intellectual property. Creators will have the ability to monetize directly with fans in a way that’s never been possible before now.
There are multiple platforms which help with the sale of NFTs, like the recently launched “Valuables by Cent“, which is described as a marketplace for tweets. The organization allows creators to sell tweets, which are autographed by creators. As Seeking Alpha reports, Jack Dorsey’s post will remain public on Twitter after it is auctioned off, but the buyer will get a certificate that has been digitally signed and verified by Dorsey.
Another option for NFT investors and fans is a developer tool called “S!NG,” which, as the Associated Press describes, is a new way for creators to monetize their work. The application is powered by the Ethereum blockchain, which is a powerful database technology that will time stamp and verify original ownership for a file, even after it’s been shared.
NFTs use the blockchain, which is the same technology that supports Bitcoin along with other cryptocurrencies, which allows creators to make unique certificates of authenticity and ownership for any type of digital or more intangible product or work, as the BBC explained.
The platform offering up Dorsey’s first tweet seems to recognize that many will be bewildered by this new investment idea, writing on their website an explanation of sorts on the tangibility of owning such intangible creations: “owning any digital content can… hold sentimental value and create a relationship between collector and creator.”
What is a blockchain?
A blockchain is a type of database that stores information within blocks that are chained together. When data comes in, it is put into a new block, and once full, it is chained to the previous block in chronological order.
Some blockchains are decentralized so that no one person or group has control, and all users keep control collectively. While spreadsheets are meant for one person or a small group to store and access information, a database, like a blockchain for example, is meant to store a much larger amount of information, as Investopedia explains.
NFTs run on the Ethereum blockchain.
NFTs are collectors items
An NFT is a unique asset, usually a work of art, a GIF or a meme that is bought by collectors. Digital songs, videos or items in video games can be sold as NFTs. Collectors, or buyers, hope the value will go up so that they can resell the item for a profit, in a market that is feared to be a price bubble, as investment website Seeking Alpha points out.
Recently, artist Mike Winkelmann, who goes by the name Beeple, had one of his digital art works promoted by the auction house Christie’s. They listed one of the artist’s “monumental collage” works, calling it the first purely digital artwork (NFT) ever offered up by the auction house. The work was set to cease being offered up online by Christie’s on Thursday March, 11. Beeple has made millions selling his digital art, validated by blockchain database technology.
Christie’s even announced that it would accept payment in the form of the cryptocurrency Ether, as the New York Times reported.
On Feb. 24, the platform Nifty Gateway announced that the work by Beeple, called “CROSSROAD,” had sold for $6.6 million.
And astonishingly, a recent “crypto art rendition” of the famous Nyan Cat meme sold for $590,000, investment site Seeking Alpha reported.