Have you heard of NFTs but weren’t sure whether they were a scam or legit? Maybe you don’t know what a non-fungible token (NFT) is. “NFT isn’t a scam” – Faisal Abidi elucidates on the same by giving you all the information too.
What are NFTs?
NFTs are Non-Fungible Tokens. The NFT is a type of token that uses the Ethereum blockchain, and they are unique and cannot be replaced by another token.
The NFT, an acronym for a non-fungible token, is a type of token that uses the Ethereum blockchain — the same technology that underpins cryptocurrencies like Bitcoin and Ether. Yet, unlike those currencies, NFTs are unique and cannot be replaced by another token, making them ideal for tracking digital assets or physical objects to prove ownership of them.
Artists and collectible makers have been among the first to embrace NFTs. Still, there’s no reason they can’t be used for other purposes, from tracking valuable items like rare cars or wines to establishing intellectual property ownership.
Under normal circumstances, it is easy to copy and paste something. You can copy and paste a text file, a song, or a video, and you are free to do so. But the same is not possible with an NFT (Non-Fungible Token).
“NFTs are unique tokens that cannot be replicated, and there is an individual address for every NFT which means that they are non-interchangeable. They also represent digital ownership of art, music, and even tweets nowadays.” – adds Faisal Abidi, FNR Technologies.
People Perception
One of the main reasons people are suspicious of NFTs is that they don’t understand what they are and how the market functions. This makes it easy for scammers to take advantage of unsuspecting buyers.
Other people don’t like NFTs because they don’t want to see the value of their art go down in price. This has happened with many other cryptocurrencies and digital assets, so it’s understandable why some people might be concerned about this happening with their artwork.
As the crypto community grows, so does the number of scams and frauds. The most prominent example is the ICO market, which exploded in 2017 as a way for startups to raise funds. Sadly, nearly 80 percent of those ICOs were fraudulent. NFTs have taken the art world by storm, with some artists selling single pieces for millions of dollars.
Faisal Abidi notes that when crypto’s price rises sharply, more criminals notice and attempt to defraud people.
The truth
Minds like those of Elon Musk, Mark Cuban, and Gary Vaynerchuck are also into NFTs. NFTs are built on blockchain technology. The blockchain is a distributed ledger technology in which digital transactions are recorded chronologically and publicly. This technology allows you to buy and sell digital assets like art, music, videos, etc., on the Internet with confidence.
This is a new way to invest money. You’ll have no idea what it can grow into tomorrow. You could earn millions if you pick the right one at the right time.
Faisal Abidi highlights how NFT has helped artists get their deserved paychecks.
The non-fungible token (NFT) space is a new area of the crypto world that has grown in popularity since the beginning of this year. This space involves the creation of art via digital mediums and then selling them as tokens on a blockchain.
The rise of this market has been quite remarkable, and it has seen some incredible sales in recent times, with some works selling for millions of dollars. The most recent example is the sale of Beeple’s “Everydays: The First 5000 Days,” which sold for $69 million at Christie’s auction house.
While these sales have been monumental and have made headlines worldwide, there is still a lot of skepticism about these sales, especially for people outside of the cryptocurrency sphere.
Faisal Abidi, RNF Technologies, also has provided his take on how NFTs have helped artists get their deserved paychecks from their works. He said:
“It [NFTs] gives a chance for musicians, artists, creators to earn money without any middleman taking a cut or controlling the price which has helped them to continue their art fields in times such as COVID where making money has seemingly become difficult due to no shows or even social outings.”
Closing thoughts
Well, it’s not a scam. The world of NFTs is a little crazy right now. It’s an odd, volatile market with a lot of speculation and hype. Many people treat it like a get-rich-quick scheme, which unfortunately creates a false sense of what the potential truly is. Yes, there have been a few instances where artworks have been sold for shockingly large sums of money. And yes, that price tag may be inflated by speculators trying to ride the wave. But we shouldn’t let that get in the way of what could be a significant movement — one that has excellent potential to help artists earn their well-deserved paychecks.