“Timbaland, the popular rapper and songwriter, bought BAYC (Bored Ape Yacht Club) for $220,000.”
“Jack Dorsey in 2021 sold his tweet at the US $ 2.9 million as an NFT”.
You might be wondering why people spent millions on digital art. Our blog will shed some light on the rising popularity of digital art.
People are often interested in collecting unique, rare, and valuable things. Scarcity leads to the increasing value of any item, and that’s the case with non-fungible tokens. One of the vital qualities of these non-fungible tokens is that you can never copy them; hence rare and immutable, so they are so expensive. They are valuable only because they carry authenticity.
Reasons for the immense popularity of NFTs’
NFTs are one of the most unique and exciting aspects of blockchain technology. There has been an increasing popularity of non-fungible tokens (NFTs) in the market, and the recent hype is because of the following reasons.
NFTs are authentic and irreplaceable
Collecting authentic pieces of art or any asset is always priceless to people. The storage features of these non-fungible tokens offer them uniqueness and originality. The digital arts are stored securely in a blockchain so that no one can tamper with them. As it’s unique, hence, if you own an NFT, you have the sole right to it.
Open avenues to earn
Mostly people like to increase their capital by investing in profitable assets, be it gold, bonds or other assets. You can use them as long and short-term investments and treat them as passive income. An advantage of investing in NFT art is that they are booming in the digital market, and buyers have a fair chance to earn extra dollars with its resale.
Supporting the artist
Philanthropic objectives can be another factor that drives some millionaires to give a supportive hand to upcoming artists by buying their artworks. Unlike ordinary charities, one can be assured that their help is directly reaching the artist as there is no mediator in between.
Why are big brands associated with NFTs?
Besides millionaires, big brands are gradually coming forward to support NFTs. One of the probable reasons is that these fancy tokens add new dimensions to how a brand connects to customers. For more reasons, check out the list below.
- Future lies in the metaverse
The world has succumbed to digital space; hence big brands can connect with their customers through digital media. Some brands are making creative NFTs that instantly seek customers’ attention. A famous investor in NFT, Mr Andrew Lokenauth, opines that as the dependency of customers increases on the virtual world, a brand’s association with NFT will register a hike.
- NFTs are revenue boosters
According to some experts, in this cutthroat competitive environment, businesses search for a new way to add extra revenue to their treasury, and NFT serves them as a revenue booster. Recently popular brands like Louis Vuitton launched LV-branded NFTs, which act as a weapon to spread the word about their brand to customers.
Considerations before investing in NFTs
Undoubtedly, myriads of scope and benefits might allure you to invest in these digital arts; however, one should remember that the NFT is volatile. This booming industry is vulnerable to scams and fake investors, so it is necessary to do some background research before investing a considerable amount in these non-fungible tokens. An important aspect to consider is checking whether the seller owns the token you bought or not.
Irrespective of their volatility, NFTs are winning over the digital market. From millionaires to the commoner, everyone is trying their luck in this art form. If you wish to be a part of this digital trend, start pitching unique ideas and launch your own NFT. Please seek expert advice before making any decision.