Joel Simon: Our discussion today will touch on a number of things that remain a mystery to many people. We will focus on the non-fungible tokens known as NFTs, and in the process we cannot fail to mention blockchain and cryptocurrencies. Sydney, I recently read that NFT technology has been around since 2010. It became popular in 2017, and this year NFT sales have already reached over $ 2 billion. So this is definitely a topic that people should be striving for. Let’s start with the simplest question: what is NFT?
Melody: In essence, NFT is a digital asset that is something unique. If you can digitize it, you can turn it into NFT.
Simon: Since NFTs are digital assets, how do people keep track of who owns them?
Melody: The NFT is stored in a digital ledger known as a blockchain. This gives him the ability to keep records of ownership and also acts as a certificate of authenticity.
Simon: I think I know enough to tell you what’s next and then pass it on to you. People buy and sell NFTs on NFT marketplaces using cryptocurrency and then transactions are done on platforms that are on the blockchain. Without going deeper into the rabbit hole, for those listeners who may not have encountered this before, you can give us a quick explanation of what it all means.
Melody: Sure. You will need to know a little about blockchains, cryptocurrency, cryptocurrency chain platforms, and the online marketplace where people buy and sell NFTs to put this in context. Simply put, a blockchain is a system for recording information that makes it difficult to change, hack, or trick the system because it is essentially a system that has a digital record of transactions that are duplicated and distributed throughout the network. computer systems on the blockchain. It is a form of peer-to-peer file sharing network, but focused on cryptocurrency exchange. As for the cryptocurrency exchange platform, it is a platform that facilitates the trading of cryptocurrencies for other assets, including digital currencies such as bitcoins and fiat money, for example. Essentially, a cryptocurrency exchange acts as an intermediary between buyer and seller and makes money through fees and transactions. Now listeners may wonder what the hell is paper money. It is a government-issued currency that is not backed by a commodity such as gold. Fiat currencies have been in the United States since 1971, and modern fiat currencies are fiat currencies. For NFT, the Ethereum exchange platform is most actively used. (There are also Coinbase, Ripple, and others.)
Simon: To clarify, the US dollar became a fiat currency in 1971 when it abandoned the gold standard?
Simon: Great, thanks. Thanks for all that Sydney is in the background. We now turn to the good part of the discussion, namely trades and markets.
Melody: Yes, there is a lot going on there, a lot of excitement, and, as usual, when money gets big, people start to pay attention to it. As you mentioned earlier, Joel, NFT’s sales have exceeded $ 2 billion. Only in the first quarter of 2021, according to nonfungible.com. And while sales and prices have dropped from February highs, $ 2 billion in a quarter is a lot of money. In fact, this is more than 20 times more than was achieved in the previous quarter. In terms of motivation, the CEO of SuperRare said shoppers are motivated because NFTs provide a unique bond with the creator not found in other art forms.
Simon: What industries in particular have been associated with NFT so far?
Melody: Let’s start with fine art. There was a sale recently at Christie’s. Beeple is the name of a digital artist. He sold the NFT under the name Daily: first 5000 days for $ 69 million. It was first of its kind auction at Christie’s. On the other hand, this is a big job – it’s a collage, as the name suggests, of 5,000 working days.
There is Jose Delbo, an artist who started selling NFT Wonder Women… He was a comic book illustrator in the 70s and 80s and recently sold Wonder Woman to NFT for $ 1.85 million. NFTs were also very popular in music. The estate of MF Doom, who passed away in October 2020, recently sold disposable versions of his signature augmented reality mask. (MF Doom was one of the first to use NFT.) And they were selling for between $ 18,000 and $ 857,000 each. Shawn Mendes has a collection of NFT genies. Genies are actually the official avatars of the world’s biggest icons, and they use them to bring “real-world utilities” to NFT – you can buy Genie wearables to use to decorate your genies. You can get Shawn Mendes’ genie and then you can buy NFTs that will allow you to provide him with clothes and the like. Kings of Leon recently held a very interesting NFT offer in March in which they offered their new album as NFT and as part of this project they dumped three different types of tokens. One of them was a special album, so it had some extra visuals and stuff. The second was the golden ticket. They sold two of them with live performance bonuses that come with the purchase of the album, including guaranteed front row seats for one performance on each tour for life. A week after they were offered, they made $ 2 million.
Simon: I know there was activity in the sports world too. Maybe you could give a couple of examples there?
Melody: Sports is another area in which he really experienced an explosion. LeBron James in action. Best NBA Shots are digital like digital sports trading cards, but it’s actually a small video clip with a particularly memorable footage from an NBA game. LeBron sold one of his Top Shots – a dunk in which he mimicked Kobe Bryant’s reverse windmill dunk – for nearly $ 400,000. Tops, one of the main suppliers of baseball cards, will start selling official versions of classic Tops baseball cards based on the blockchain, which of course has piqued the interest of some traditional collectors. And another one of my favorites is the digital horses that are talked about in the cryptocurrency world. Horse racing meets NFT mania. There is digital platform for horse racing… Owners pay a modest entry fee for their NFT horses to compete, and they participate in one event every hour, all the time, seven days a week. This is really interesting to me because this is what they call respiratory NFT. By this they mean that each NFT has its own unique DNA. He can reproduce, he has his own life, he chases, he has genes that he passes on. He lives in an algorithm so no two horses are alike and owners can breed their NFT horses in a hosted stud farm.
Simon: Wow, this looks like the NFT version Sims video game. Very interesting.
Melody: Yes, then there are some “weird NFTs” (my categorization). They are not necessarily industry specific, but they are quite interesting. Jack Dorsey, founder of Twitter, sold his first tweet as an NFT for $ 2.9 million. His first line, and I quote, “Just setting up my Twitter.” There is an employee in San Francisco who plans to offer NFT room rentals in their coliving community starting at $ 300,000. In March, there was a familiar couple in California who exchanged virtual rings on their smartphones. There was a cat meme called Mayan Cat meme, I don’t know if you’ve ever seen it Joel, it’s very primitive, pixelated. It has now become an NFT, which the creator sold for $ 580,000 in February. And finally, one of the most interesting moments: when isolation began last March, there was a Brooklyn director and four of his friends who were bored. So they decided to send audio recordings of their farting to each other. A year later, the filmmaker decided to auction 52 minutes of sonic flatulence as an NFT titled One Calendar Year of Recorded Farting, later selling it for a whopping $ 500.
Simon: I guess the last point shows that no matter how advanced the technology is, there will always be a market floor that will contrast with higher end products. Syd would like to thank you for a truly informative discussion on a topic that will undoubtedly continue to make headlines in the digital assets and finance world. It was great to see you on the podcast today.
Melody: Thanks Joel. It was fun talking to you today, and it’s a really interesting topic to watch out for.