Last week, art auction house Christie’s sold a non-fungible token (NFT) by graphic designer Beeple named “The First 5,000 days” for over US$69 million, making it the most expensive NFT ever sold. The hefty price tag rivals the expenditures associated with Picasso, Monet, or Van Gogh artworks, leaving many wondering what industry NFTs may disrupt next. Not everyone is cashing in on the NFT boom. Right now, Twitter CEO Jack Dorsey’s first tweet is up for auction as an NFT, with a price approaching $10,000. Early in the month, Canadian artist Grimes sold a digital art collection for roughly US$6 million.
“I’m selling this song about NFTs as an NFT,” Elon Musk tweeted Monday, attaching a video of a digitally made piece of art and music that included “NFT” in the lyrics. “The high-end art market and its auction agents and houses have been hit and will be profoundly disrupted,” said Bruno Fruscalzo, an NFT curator and creator.
Since the last TMS storey on NFTs on March 2, the market has nearly doubled in value, from US$187 million to over US$356 million at the time of writing. It’s not just about multimillion-dollar sales. According to NFT market news, the average NFT sale price is $5,000-$8,000.. With the rapid expansion of NFTs, the music industry is beginning to transform as well.
Kings of Leon stated last week that their next album would be released as an NFT. Similar moves by U2 and Radiohead to sell their songs on Apple’s iTunes Music Store over a decade ago have been contrasted. The transition to NFTs in the music industry may be the next stage in boosting scarcity and thus long-term value. “Some NFTs, cryptocurrencies, and social tokens are really worthwhile investments,” Fruscalzo remarked.
Other tokens can take numerous forms, and NFTs may be the next step in tokenizing real-world goods. Tokenization is the process of defining ownership within the blockchain, which the real estate token marketplace RealT is undertaking with properties around the US. Despite not referring to their products as NFTs, the method is very comparable. With just a blockchain wallet and some Ethereum, you can buy property ownership tokens.
Ownership of a RealToken (the digital asset acquired upon investing) generates monthly rent payments. But the rise of NFTs and Ethereum has been criticised for its influence on the atmosphere. Some people object to the strong link NFTs have with Ethereum because of the massive amount of greenhouse gases released by mining Ethereum and processing transactions.
Ethereum secures its blockchain through a “proof of work” method, which is renowned for consuming a lot of energy. Ethereum’s annual carbon emissions are thus huge, and its carbon footprint is similar to the entire Ivory Coast.
Ethereum, like an aeroplane, emits carbon emissions, according to Blockchain for Climate Foundation founder Joseph Pallant. If someone buys a plane ticket, they are accountable for a percentage of the emissions. Without a ticket, the plane would have set off. What matters is if demand for aircraft tickets increases and more planes fly.
Similarly, Ethereum is frequently mined. However, as demand grows, so does the amount of Ethereum mined and thus the associated carbon emissions. Beeple acknowledges the environmental damage and says he will offset his NFT-related carbon emissions by investing in green conservation initiatives and renewable energy.
The market’s overall quick expansion is still questionable. Others, like Fruscalzo, believe the bubble will not collapse. Then came the bust, said Fruscalzo. “This is the future, not the wild west.”