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Sunday, May 29, 2022
HomeLatest NewsStrange flight of NFT: objects that float in the cloud and can...

Strange flight of NFT: objects that float in the cloud and can collapse

The first tweet from the founder of Twitter went on sale at the end of 2021 and was purchased for $2.9 million. The tweet read “Just setting up my Twitter” and was written fifteen years ago by Jack Dorsey. This tweet was purchased by a Malaysian named Sina Estavi. Estavi put it up for sale in April 2022 on a digital marketplace called Opensea, but the highest bid that 6200 dollars were received, only 0.2% what he paid.

Sell ​​a tweet? How is this possible? Until now, there was a market that everyone knows: buy and sell paintings, sculptures, daggers or papyrus. Things that have a tangible presence. But a tweet is a digital record. It’s on the Internet. On the cloud It can be seen and read. If a person types into Google “the first tweet of Jack Dorsey” (the founder of Twitter), he easily finds it. It can even be played, copied and used as a screensaver. Owner Mr. Estavi. This is the same.

Jack Dorsey’s first tweetTwitter

Buying a tweet is like buying words from a dictionary. Let’s imagine that the Royal Academy decides to auction the word “lamp” and someone buys it. I would only buy an electronic record where it would be said that this person officially owns this word, even if everyone used it. To many this will seem ridiculous, but it happens and it has a name: NFTs.

Just over a year ago, few people had heard of NFTs. It is an abbreviation for Non Fungible Token. The most accurate translation would be “irreplaceable token”. The NFT could be a Dorsey tweet, as well as a digital image of an NBA basketball player, a digital photo of the front of our house, or something else. This market has it all: one of the most ridiculous things that have been sold is a drawing of a bored chimpanzee (Bored Ape). Sold for $3.14 million.. There are 10,000 images of the Bored Apes: in a wig, with bulging eyes, in sunglasses, in a helmet … Now they can be bought on the digital market of The Bored Apes Yacht Club. The average one costs about $100,000. It is paid in Cryptocurrency Ethereum, which at the time of this writing is equivalent to 92 ethereum. Whoever buys one of these boring monkeys will be able to tell their friends that the digital version of this hat monkey belongs to them and only them.

Now, since there is no specific regulation for NFTs, anyone can download any image of a bored monkey and put it on your Twitter profile. This is exactly what Elon Musk, the founder of Tesla and SpaceX, did. An image of a bunch of bored monkeys was uploaded and displayed for a few days and it said “I don’t know… this seems a bit expendable” (meaning that, contrary to what the NFT definition says, you could use these NFTs, even if they have ownership rights). This fact has attracted the attention of many people to this curious and strange market.

bored monkeyBored Monkey Yacht Club

The NFT market is a digital market where you pay with cryptocurrencies: bitcoin, ethereum, dogecoin… The buyer can prove that he owns something like a picture of a bored monkey, because when he buys it, there is a record in the blockchain, which is a highly secure platform. The blockchain checks if Bored Monkey number 355 belongs to a specific person. It cannot be changed. blockchain can prove that something virtual has an owner. Not sure if this will help.

The history of the NFT is related to Israeli mathematician named Meni Rosenfeld. After earning a master’s degree in mathematics, Rosenfeld worked for SimilarGroup, a company that measured web page traffic. There he got acquainted with algorithms and heard the word bitcoin for the first time. “In August 2011, I realized that Bitcoin had a lot of potential,” he said in a recent interview with He contacted Ron Gross and they started developing projects based on the trendy bitcoin cryptocurrency.

In 2012, Rosenfeld prepared a paper that is the source of the NFT for many. It was called “Onewriting colored coins(Review of colored coins). The idea was this: Bitcoin was a virtual currency that was used to buy things (it was fungible, well spent). But what happens if we take some bitcoins and separate them from others by coloring them? They would be different. And what happens if these special bitcoins are linked to exclusive property something and it was not a consumable?

The idea was very simple, but formed over the years. In 2014, Anil Dash, CEO of Glitch, along with digital artist Kevin McCoy, made an attempt release digital cover based on blockchain security technology. That is, if someone has created a digital work of art, such as the Mona Lisa wearing a hat, the authenticity of the original can be verified primarily by copies or downloads.

The next step was to find a site where these works could be sold with the guarantee that they were originals. One of these first sites was Counterparty. It was a platform where users could exchange collectible digital assets. At the time, in 2014, it was mainly used for meme sharing. But it attracted the attention of those members of the crypto community who they thought about creating digital collectible art.

“After this album, everyone in the music and entertainment industry started to pay attention to NFT.”

In 2017, people started talking about “tokenized assets”. Token in English means “token”, but also “certificate”. That is digital assets may have a certificate of authenticity. In 2021, this issue began to be seriously discussed when images of US NBA players began to be “tokenized”, turned into digital commerce objects purchased with cryptocurrencies and endowed with exclusive ownership rights. Also in 2021, Sotheby’s art gallery sold two batches of images Bored Monkeys for $24 million and $1.8 million, respectively. So investors started taking it seriously.

And from there he jumped into the world of music: into an American rock band, Kings of Leon released one of the first NFT albums through a music and event platform called Yellow Heart in March 2021. “After this album, everyone in the music and entertainment industry began to pay attention to NFT. The most creative artists jumped in first, and then everyone else started tinkering,” Josh Katz, CEO of Yellow Heart, told Cointelegraph.

The NFT market has taken off so much that it moved $41,000 million in 2021. moves $37 billion in just four months of 2022., according to Chainanalysis. An envelope with paper stickers of football player Kylian Mbappe costs 1 euro. Instead, the NFT was paid $88,000 (at the price of the Ethereum cryptocurrency at the time of its creation). They exchange songs, kittens, soccer cards, Pokémon cards, and even short videos of the best basketball games. A few days ago, artist Refik Anadol turned the façade of Casa Batlló in Barcelona into an NFT. He sold it for $1.38 million at Christie’s Gallery.

BBC journalist Omar Mehtab interviewed an American who paid $208,000 for a LeBron James dunk. When Mehtab asked him what was the point of buying it since everyone could watch the play on YouTube, Jessie Schwartz replied that having a copy of the Mona Lisa is not the same as owning the original. According to Jesse, this short video is now worth over a million dollars. This is NFTmania.

The thing has spread to unexpected universes because strange things like scenes from distant planets, an excerpt from a song or a corner of the city. $590,000 was paid to animate a cat shooting rainbows from its bottom; $1.5 million for a pixel cartoon from the CryptoPunk series; $3.6 million for 3LAU’s original song; and $6.6 million for a 10-second music video by Beeple. The most expensive NFT is a work by artist Pak called The Merge sold on Nifty Gateway: it consists of an image of a white planet: it was sold for $92 million. Even thousands of copies of the same one can be sold. Grimes, the singer who was Elon Musk’s wife, has sold thousands of copies of her music album for over $7,500 each in NFT format. Each copy has a certificate on the blockchain to make sure it was… a copy.

Anyone who invests in these digital assets should take into account that quoted and paid in cryptocurrencies. In the second week of May 2022, all cryptocurrencies collapsed: bitcoin, ethereum, dogecoin and, above all, a cryptocurrency called Luna. Their dollar equivalent prices have suffered huge recession because of the war in Ukraine, inflation, fear of rising interest rates, global instability and fear. Many analysts have added that the bubble has burst and that both “crypto” and “digital art” are in a cloud of illusion. The LeBron James dunk on video suddenly became a lot cheaper.

NFTs are reminiscent of other digital fevers such as in the 2000s, and Terra was one such fever. It went public in 1999. It reached 157 euros per share and was delisted six years later, at the price of one euro. Is this another fad that’s about to collapse? Some say that this is exactly what is happening now that the market has realized that NFTs are a bluff. Actually the creators Bored Monkey series (South Lab) they admitted long ago on their website that “we decided to make some junkie monkeys and tested our skills and tried to build something (funny)”. Others think that the price of the cryptocurrency has collapsed, which has already happened several times, and that it will recover again.

And others say that when the Metaverse virtual world announced by Facebook actually launches, it will be something else. Many companies are preparing sell in the virtual world of Facebook: from clothes to cars. Payment will be in cryptocurrencies. To combat skeptics, the example is given that the Internet already existed in the 1970s, but no one could have imagined what it would be like in the 1990s when it really developed.


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