After cryptocurrencies, it’s the NFTs that are picking up pace and popularity among many. Several crypto users have understood the importance of it and have been pumping money into owning such NFTs.
Some NFTs have been sold for more than a million dollars each. The popularity of NFTs is surging, and many celebrities have also shown a keen interest in them, further increasing their popularity.
Many crypto users and traders have realized that it’s important. What’s even more, NFTs have started to pull in those who appreciate art and artists alike.
Before we dwell on the impact that NFTs have on our society, we need to understand what NFTs are.
Non-Fungible Tokens, or NFTs
One of the best ways to understand NFTs is to first know exactly what fungibility means. Suppose you have a $100 bill. You can divide it either by having two $50, five $20, or even ten $10. The $100 bill can be divided in multiple ways. So a $100 bill is fungible.
Non-Fungible is exactly the opposite of it. Consider Vincent van Gogh, a famous Dutch painter; his most famous painting, “The Starry Night,” painted in 1889, has a price estimate of $100 million. What makes it so special that it makes it so expensive? It’s one of its kind; you won’t find the same painting painted by Vincent van Gogh, although a counterfeit might exist.
Since the painting is one of its kind and cannot be broken down or substituted like the $100 bill, it finds its place among the greatest art collectors.
So a non-fungible token, or an NFT, is an art form like music, painting, a short film, and so forth. Some videos can be termed NFTs. All these NFTs are mostly digitally represented. However, there are a few NFTs that can be collected in physical form too.
You might ask, On the internet, you can find these tokens and enjoy them, so why is it so special? Well, for one, you don’t own it, and you cannot sell it.
Many are attracted to it for a simple reason: its price will appreciate in the future, like all precious items like limited-edition Nike shoes. Since they are made of a few numbers, they hold an intrinsic value that cannot be quantified.
How do NFTs work?
NFTs essentially use the same blockchain technology that drives cryptocurrencies, especially Ethereum. Several NFTs are based on Ethereum; however, some artists are considering creating NFTs based on other cryptocurrencies. It won’t be long before you hear that many NFTs are based on other cryptos.
How is NFT Different from Cryptocurrency?
If you consider a cryptocurrency like Bitcoin, it is available in large numbers. When you trade, the trade is recorded on blockchain technology, and the transaction will also involve your keys as well as those with whom you have carried out the trade.
Since anyone with Bitcoin holdings can carry out trades or invest in them, Bitcoins, like other cryptocurrencies, are finite numbers, unlike fiat currency, which we use to carry out transactions. However, they can be considered a financial vehicle or currency since there are enough Bitcoins around the world to trade or invest in. So Bitcoin is a fungible asset.
When you consider an NFT, it is also created as a finite number. Due to their uniqueness, their prices are bound to appreciate in the future. When you trade your NFTs, the transactions are recorded on the blockchain. The block will record the wallet address of the person and your wallet address. When those people trade or sell off their NFTs to someone else, they too get recorded on the blockchain.
Since these NFTs are also finite in number but cannot be sold in parts like Bitcoin or any other cryptocurrency, they are non-fungible. An Ethereum token will be similar to another Ethereum token, but an NFT cannot be similar to another NFT as sentiments like emotions are also tied into it.
How are NFTs Affecting Our Society?
NFTs are relatively new on the market, but they have had a major impact on our society. If we consider art, the artist gets paid once the art is sold. Later, the art might appreciate, and when it is again sold, the beneficiary of the entire transaction is the seller, and the cycle continues.
If we consider an NFT, once the art is sold by the artist, the artist can still earn a commission on each subsequent sale, as the artist can now program it. The artist can program a portion of the proceeds to his bank account in the form of royalties when the art is subsequently sold in later stages by sellers.
NFTs have created a new economy in the digital world called Tokonomics, where the artist gets paid by subsequent sales of the same art over and over again.
The art is no longer restricted to a video clip, an audio clip, or digital art. Such Tokenomics can be traced even in the online gaming industry.
When you play a game, you need to complete certain tasks that will assure you that you pass on to the next level. However, you, as a gamer, need to possess certain attributes or upgrade special weapons. Since completing a task with an overused weapon or attributes that are of a lower tier can affect the gaming experience in several ways,
You may find it increasingly challenging to complete a level with low-tier weapons. To complete it, you need to buy them, which are available in the game store. However, as a gamer, it is useless for you to keep those weapons that are no longer required in the future.
Thus, to overcome such challenges, the developer of the game allows you to sell those accessories on the market, allowing you to have some money to buy other accessories on the open market or within the gaming community.
Regardless of how you complete the game, the game developer gets a share in the form of royalties when such accessories exchange hands.
How did NFT become a mainstream novelty?
Although many would believe that it was the Bored Ape Yacht Club or the Crypto Kitties that started the NFT mania, this is not true. The honor goes to Quantum, the world’s first NFT. Quantum has the first digital art that was created by Jennifer and Kevin McCoy and was subsequently converted into an NFT.
When the art was completed, Kevin wanted to convert it into digital art. The problem was that he had no way of stating that it was created by the duo and not counterfeit. He feared that if the art went digital, there would be no way to tell the buyer that it was created by him and his wife.
It was at this time that Kevin approached tech entrepreneur Anil Dash and started to explore blockchain technology.
It was in 2010, when blockchain was still in its infancy and the cost of each Bitcoin was roughly $630 (at the time of writing this article, each Bitcoin is worth between $29,000 and $30,000). Ethereum, the second cryptocurrency after Bitcoin, was launched and was intended to address the shortcomings that Bitcoin faced.
Ethereum was plagued with challenges regarding overpromising and under-delivery, and its creators eventually got sued for it.
Regardless of such challenges, Kevin and Anil gambled on blockchain technology, and eventually, it paid off.
The prospect of using blockchain technology appealed to both Keviun and Anil, as the first translation and subsequent transactions could be recorded in the block and all the transactions could be viewed. Thus, such a record can truly trace the origin of the art creator and acts like a fingerprint that is challenging to duplicate, and true ownership always resides with the artist.
After the art was ‘minted,’ the duo, in front of a live audience at the Seven to Seven conference, tried selling the art online. Kevin sold his art to Anil for $4 in front of the audience while simultaneously demonstrating how digital art can be sold online using blockchain technology.
They had unwittingly demonstrated in front of the entire world how NFTs could be sold across the internet, thus giving birth to NFT culture, which would gain momentum a few years later.
Game-based NFTs
A Canadian-based game developer created CryptoKitties. The game was simple and revolved around the idea that it is difficult to understand cards in general. The game revolved around the idea that you, as a gamer, are required to collect as many kittens as possible and breed them.
These so-called kittens were required to be fed regularly and required breeders to have excellent feline genetics and expert breeds. Such a step will allow you, as a gamer, to breed rare kittens and cats and allow you to trade them so that you can buy kittens that you do not own.
Thus, the rarest of rare kittens were bred, allowing you, as a gamer, to profit from them.
Following in these footsteps, many developers started developing games like Axie Infinity, which was such a success that many citizens of the Philippines left their day jobs and played the game, earning more than they would have earned by putting in the same amount of time in their day jobs.
And the craze grows
Several celebrities jumped on the NFT bandwagon, attracting enough interest from their fans that they too started owning NFTs. Since 2021, the craze for NFTs has grown.
We have listed the top ten celebrities who own the most expensive Non-Fungible tokens.
Snoop Dogg
One of the most renowned American rappers and personalities, Snoop Dog, purchased Right Click and Save As guy for a whopping $7,088,229, or 1,600 ETH at the time of purchase.
The NFT was one of the limited editions that were created by artist XCOPY and listed on SuperRare in December, adding to his ever-growing collection of Non-Fungible Tokens.
Snoop Dogg is no stranger to NFTs and, in the past, has purchased many such expensive digital artworks. In 2021, Snoop Dogg, under the pseudonym COZOMO De Medici, like other crypto enthusiasts, purchased many such art collections.
As a ‘whale’ in the crypto community, the rapper has collected a sizable collection of such NFTs across multiple accounts. These works of art include multiple Bored Apes, CryptoPunks, and another XCOPY piece that he purchased for $3.9 million.
Gary Vaynerchuk
A serial entrepreneur named Gary Vaynerchuk, often referred to online as Gary Vee, holds second place after Snoop Dogg as he purchased CryptoPunk #2140 for a colossal $3,953,216, or 1,600 ETH. Despite buying the artwork for the same amount of Ethereum as Snoop Dogg did, the valuation of Ethereum fluctuates due to its inherent volatility.
Vee was one of the early adopters of this growing trend and had purchased this NFT five years earlier when the price of each Ethereum token was valued at $2,470.76.
Vee has been actively promoting and is an avid NFT collector, as his OpeanSea account suggests that he owns more than 7,000 NFTs from several projects. He has also started an online community, as he has amassed a cult following in the crypto community. He also released his version of cartoon NFTs called VeeFriends. This purchase consists of an ape adorned in an orange beanie and sunglasses in the Punk 24-bit art style.
Justin Bieber
Another pop music artist, Justin Bieber, takes third place in buying the most expensive NFT. On January 29, 2022, he purchased Bored Ape Yacht Club #3001 for a staggering $1,301,550, or 500 ETH.
When he announced his purchase on the social media platform Twitter, he was ridiculed across the platform for buying an NFT featuring a sad, unshaven, brown-furred ape dressed in a black t-shirt with a blue background.
Many critics were quick to point out that he could have purchased the same ape for $270,908 or 104 Ethe at the time of sale. They criticized him for paying roughly four times the actual amount to add to his collection of NFTs.
Steve Aoki
The fourth place for buying the most expensive NFT goes to Steve Aoki, an American DJ and producer. On January 7, 2022, he purchased Doodle#2238 for 269.69 ETH, or $862,056.
He was so excited about the purchase that he paused one of his shows to show the NFT that he had purchased to his fans. The NFT was created by Canadian designer Scott Martin.
On July 20, 2021, Aoki purchased CryptoPunk #6473 for $160,599, or 65 ETH. A few months later, he sold that NFT for $974,034 or 200 Ethe. Aoki has multiple OpenSea accounts on which he collects and moves them across his accounts on SteveAokiVault, Steve Aoki, 29C1EC, and SteveAokixTheUntamedVault.
Logan Paul
A YouTube celebrity turned boxer is in fifth place for purchasing one of the most expensive NFTs. He purchased K4M-1 #03 sold on 0N1 Force way back in February 2021. He had purchased this NFT for a cool price of $624,669, or 188 ETH.
He has a close connection with Gary Vee and projects one of the most diverse NFT portfolios. He seems to own at least two accounts, as per OpenSea. The fact that two of his most expensive NFTs combined break the $1 million mark He owns several CryptoPunks and Bored Ape NFTs, as per the two accounts ‘logz’ and D50C2A that he owns.
Neymar Jr.
Brazilian football superstar Neymar Jr. holds a sixth place among the top 10 celebrities to buy the most expensive NTFs. On January 20, 2022, he purchased his first Bored Ape Yacht Club #5869 for 189.69 ETH, or $569,531.
On the same day, he purchased another Bored Ape, #6633, from Bored Ape Yacht Club. the combined amount of both apes for $1.05 million. Shortly after the purchase, he updated his Twitter profile picture with #6633, and after a couple of days, he returned to an image of himself.
Marshmello
Marshmello, the masked electronic music producer, comes in at number seven on the list. On October 19, 2022, he purchased CryptoPunk #8274 for 130 ETH, or $504,069.
He had previously purchased BAYC #4808 in September 2021 for 75 ETH. Then, a few months down the line, he sold his ape for 150 Ethe to a user at tommykethvault.eth. At the time of sale, he sold it for $403,371, making a profit of $183 in the process. Although he has a good collection of NFTs in his crypto wallet, his prized collections can be found on his OpeanSea account, ‘itsmarshmello.’
Madonna
In eighth place comes pop diva Madonna with her purchase of the most expensive NFT she owns. On March 14, 2022, she purchased BAYC #4988 for 180 ETH, or $466,461.
Along with owning several other NFTs, she created her collection of NFTs titled ‘Mother of Creation.’ She created these three works of digital art in collaboration with Beeple, a famous digital artist, featuring a naked computer-rendered version of the singer engaging with nature. Despite causing some criticism due to the unusual nature of the content, one of the pieces sold for a whopping 170.5 ETH, or roughly $350,000, in May of this year.
Eminem
One of the most famous American rappers is Marshall Mathers, also known as Eminew, who comes in ninth place with BYAC #9055 purchasing on December 31, 2021, at 123.45 ETH or $453,776.
The purchased ape resembles himself in appearance. A Twitter user, @Gee_Gazza, took to the medium to express his joy in a message. The tweet read, ‘I’m living in a simulation. Thank you, @Eminem, for buying my ape and joining the club! Madness. Let me write a lyric for your next single.’
The purchased NFT features a white-furred ape donning a gold jacket and a chain with a boxy army cap that looks exactly like the one worn by the rapper.
Tom Brady
Tom Brady, quarterback for the Buccaneers, takes the last place in the top ten celebrities with the most expensive NFTs.
On April 5, 2022, he purchased BAYC #3667 at a staggering 133 ETH, or $453,062. The NFT features an ape on an army-green background with a WWII aviation helmet smoking a cigarette.
The veteran NFL player joins the ranks of other sports personalities who own NFTs like Steph Curry, Shaquille O’Neal, and LaMelo Ball.
What’s the future of NFT?
As NFTs pick up pace, they are integrating into the mainstream, and the possibilities are endless.
Several celebrities are in the process of making their versions of NFTs. Eminem launched his version of limited NFTs. Snoop Dogg created NFT passports while going on his latest tour in the summer of 2023.
Ashton Kutcher and his wife, Mila Kunis, have been longtime supporters of cryptocurrency and blockchain technology and have created an animated ‘stoned cats’ series in 2021. Instead of selling their creative control to some big producer, the duo offered their views on buying NFTs, allowing creators to make the animated show.
A few months ago, former President Donald Trump released his version of NFTs. They proved to be so successful that many Americans bought these NFTs. thus prompting him to create more NFTs.
Thus, the show does not deviate from its original intended purpose of avoiding the shackles of the society that we live in.
These are a few examples of celebrities taking an active interest in promoting their art through NFTs.
Final thoughts
As the blockchain evolves, it is becoming a part of our daily lives. Since the possibilities are endless, it has opened up several opportunities to get integrated into the mainstream.
Although many critics mock and question NFTs, resulting in their downfall in price, there is still hope that NFTs will start to rise like a phoenix, dominating the market again. All it needs is a spark.
If we consider the cryptocurrency market, especially Bitcoin, when it was first available to the public to buy, each Bitcoin was priced well below a cent. Many critics mocked and made fun of it. Today, at the time of writing this article, the price of each Bitcoin is trending between $29,000 and $30,000.
Even though Bitcoin reached its all-time high of roughly $67,000, it has fallen by almost half. However, such is the nature of cryptocurrency that it is volatile, which allows crypto traders to jump in and make quick money. Today, many regret their decision to ignore Bitcoin when it was well within their reach.
Thus, all things considered, the prices of NFTs will soon pick up, and it won’t be long before they start selling like hotcakes.
