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Crypto comes to the art market with NFTs

Artists, such as Snoop Dogg, have been keen to blend music with the world of crypto-currencies through Non-Fungible Tokens, or NFTs for short. In addition, several music platforms are adopting blockchain-related systems. NFTs could become one of the most important underlying assets in the entire virtual economy. Its tamper-proof property titles can be applied to any digital object.

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It seems there is room for everyone in the blockchain! After LODE’s gold and silver-backed cryptocurrencies, it’s time for a new blockchain-related phenomenon: Non-Fungible Tokens, or NFTs for short. Exploding in popularity a few months ago, the potential of the NFT market has not escaped the notice of large companies, and several of them are taking it seriously.

While many voices are rising to denounce a new speculative bubble, others see NFTs as the technology of the future that will significantly facilitate the authentication of digital works. To understand everything about NFTs, we are going to decipher their uses and sustainability as well as identify the companies that are caught up in the game.

What are NFTs?

NFTs (Non-Fungible Tokens) are totally unique digital coins, certified by the blockchain to keep track of ownership and create scarcity. Its inviolable title deeds can be applied to any digital object whatsoever: music, photo, video, video game element, and hold on tight… even a publication on social networks (a tweet for example). These new assets represent a new modality of digital transaction, especially in areas related to the internet.

Jack Dorsey, the founder of Twitter, managed to sell his first tweet for $2.5 million. Artist Beeple sold him one of his works for $ 69 million. It must be said that these astronomical sums cause great media hype around NFTs. Experts clearly display their skepticism because of their high volatility, others accuse them of giving unreal values ​​to works in addition to encouraging speculation. However, the truth is that the NFT market will eventually mature and become widespread through the installation of mechanisms for valuing assets.

NFTs will shake up the world of art but also that of marketing

If the contribution that NFTs could have on the art market is clear, it should be noted that several large multinationals are also getting involved and adopting this very promising technology. As part of a marketing campaign , McDonald’s France posted pixelated works from its most popular menus (Big Mac, McNuggets and Sunday) on its social networks. And in fact, from April 9 to 18, the American brand is holding a contest that involves a total of 20 NFTs. Each work will be tokenized (transformed into an NFT), it will then be well anchored on the blockchain and will have an exclusive and tamper-proof identifier.

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For their part, the fashion giants are also fascinated by NFTs and see it as a significant marketing asset. Moreover, noises from the corridors announce that the association of luxury brands is planning to launch an NFT project. The applications of NFT are more and more numerous, it is therefore normal that the big luxury houses want to get their hands dirty. This project, of which we do not really know the details, will bring together several luxury brands such as Gucci or LVMH. The luxury sector intends to benefit from NFTs to fight more effectively against counterfeiting.

Cryptocurrencies, the future of music? 

Called “A Journey with the Dogg”, it is the turn of the American rapper Snoop Dogg to launch his own collection of NFT. This is a total of eight coins available in limited quantities, including the “Snoop Dogg Coins” which was sold for only 1 hour. The collection encompasses Snoop Dogg’s memorabilia from his early years in the art. Snoop Dogg wanted to mix musical culture with the world of crypto-currencies through NFTs.

Like Snoop Dogg, more and more music platforms are adopting blockchain-related systems. Among them, EarthTones , a platform that relies on the Ethereum blockchain and connects independent musicians with fans and concert halls. An innovation that will finally be able to stop the overexploitation of musicians by the giant record companies. The platform mainly allows musicians to maintain full control over their musical properties, and to benefit fans through the cryptocurrency: JADE . 

NFTs could become one of the most important underlying assets in the entire virtual economy. They could extend beyond art. However, it is clear that this instrument inevitably needs a correction in order to remove all the uncertainties and get the most out of blockchain .  

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(Featured image by Tirachard Kumtanom via Pexels)

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Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.