It has been an interesting week and one filled with news about non-fungible tokens (NFTs). Just like NFTs have are immutable in nature, so it seems the trend of digital assets is one that is only going to gather momentum.
Everyone is looking for a slice of the market – the sharks – and the week began on a rather high note for NFTs with Topps chairman Michael Eisner speaking to CNBC's Squawk Box this Tuesday and arguing that NFTs are going to appeal to all.
Topps is the leading manufacturer of collectible card games and interestingly, the company has increased its digital share by 25% thanks to the pandemic and now shift towards digital assets, not least NFTs!
Was this the only big news in the NFT world this week – hardly so, as Tom Brady, the six-time Super Bowl winner has launched his own platform dedicated to non-fungible tokens.
Autograph is Brady's attempt to create a brand-new marketplace for NFTs where entertainers and athletes will have a shot at making a fortune. This all sounds like good news, but not everyone is actually quite certain of the asset's potential.
In fact, Vignesh Sundaresan, the founder of the Metapurse NFT project who bought the Beeple's “Everydays: The First 5000 Days” NFT” for a record-setting $69 million, argued in an interview for Bloomberg that NFTs are a crazy investment and perhaps an unwise one.
A few weeks back, we did a story on BNP Paribas CEO John Egan who shared Sundaresan's opinion that NFTs are an even riskier investment than traditional crypto assets. This brings the question back to our original point – are NFTs really going to appeal to everyone?
A Quick Parallel with Loot Boxes in Video Gaming
Paying for digital goods to update your online look is not new. In fact, loot boxes have been one great example of people willing to part with dear penny to gain bragging rights online. However, no loot box has ever cost $69 million.
The headiness of some purchases aside, there is certainly an appeal in NFTs and how they are perceived by tech-savvy netizens with plenty of disposable income. Because NFTs are so adaptable, and you can apply them to pretty much anything, from World Poker Tour to Internet memes, the statement that they are going to appeal to everyone is definitely true.
Another reason why NFTs are most likely going to appeal to us all is because companies such as Theta Labs are making them more accessible. You don't have to pay millions to get one. Surely, the most expensive ones will probably be owned by a few quirky moguls, but overall, non-fungible tokens are here to stay.
And why not? After all, they appeal to the nerds in us all!