The Ledger: NFTs make their mark

The business of non-fungible tokens (NFT) is booming. NFTs have been making headlines for several weeks now, with companies and consumers alike showing a growing interest in the collectibles. Even retired MLB and NBA athletes have been endorsing various platforms as sales clock in record-high numbers.

Meme creators have managed to monetize timeless classics by letting internet denizens purchase “the original digital copy” of something that has been in circulation for decades. Recently, we have seen sales of the Nyan Cat, for example, and the notorious ”I Can Has Cheezburger” lolcat meme series.

But, what is behind this phenomenon? NFTs aren't doing anything unique per se. Arguably, all they are doing is bringing familiar goods online and giving them a collectible/trade value. As some have characterised it, it is a way of securing ultimate “bragging rights” over a cultural symbol.

Platforms such as NBA Top Shot have generated more than $200m in tokenized collectibles, with $132.5m of that generated in the space of just seven days.

But why would anyone pay $208,000 for a short video snippet of LeBron James scoring or cheering at his own win?

Bragging rights and community

Snapping up digital bits and bobs of memorabilia may not seem like much fun but it's always been popular – or at least a form of it. Collectibles go back all the way to card games and baseball cards.

Owning such collectibles makes you feel “closer” to your team, and it gives you a sense of belonging and satisfaction.

So, why should NFT collectibles be any different? Here is a hint; they really aren't. Players are amassing NFT tokens, whether this is a meme or a short video of their favorite player slam-dunking in the NBA, just because they want to display them.

Some are even putting these digital assets on display in their homes on LED screens to show off. Bragging rights and community are strong driving factors, and for that reason it is likely that NFTs are only getting started as a burgeoning industry.

Anything is collectible, anything is quantifiable

You may argue that NFT is just a way to commoditize pretty much anything out there in the pursuit of the almighty dollar, and you may not be too far from the mark.

Yet, NFTs are a great way to crowd-fund and support your favorite sports franchises as well.

Platforms such as Sorare have been channeling fan engagement with popular sports franchises, bringing soccer fans to the fantasy NFT world. This is precisely why NFTs could be here to stay as they find a foothold in popular culture.

They can be used to create fantasy teams and find new and exciting ways to engage with something you enjoy – whether this is a soccer team or even Minecraft.

Ultimately, NFTs look set to proliferate. However, an over-saturation of the market could lead to some bad apples. Consumers would do best to stick with the platforms that draw the community's approval.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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