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  • Cecilia Escobar

A fleeting digital promise? The NFTs

NFTs or Non-Fungible Tokens are unequivocal representations of assets, both digital and physical. They are integrated into the Ethereum blockchain, so they use the same technology as cryptocurrencies, and they cannot be divided or exchanged with each other, but they can be bought and sold.

Physical money and cryptocurrencies are fungible, this means they can be traded or traded against each other and have the same value. For example, the value of a bitcoin will always be equal to the value of another bitcoin, this gives confidence when making transactions.

Very different is the case of NFTs, each one has a unique digital signature, making it impossible for them to be exchanged or equal.

Its function is to name an NFT from digital objects that represent both tangible and intangible elements either

  • Generative art

  • Gif

  • Videos

  • Collectibles

  • Virtual Avatars

  • Video Game Images

  • Music

Among others

The first digital object considered as an NFT, according to data from Forbes, is Quantum, by New York artist Kevin McCoy. It is an octagon animation, and in 2014 it was associated with a certificate of ownership. The piece was sold for $1,472.00 in 2021.

How are NFTs acquired?

To acquire an NFT, it is necessary to follow some steps. The first and most important thing is to have a digital wallet with the capacity to store NFTs and cryptocurrencies.

Cryptocurrencies can be purchased with credit cards on platforms such as Coinbase, eToro, Kraken, and Paypal, among others. After acquiring them, you can transfer them from the exchange to the wallet of your choice.

You will need to be aware of the commission that most exchanges charge for your transactions when you buy cryptocurrencies

Most Popular NFT Markets

There is a wide variety of NFT sites to buy, some of them are:

  • Open

  • RobotEra

  • Raribie

  • IMPT

  • Tamadoge

"It's function is to name an NFT from digital objects that represent both tangible and intangible elements

New digital crypto market

The new digital age and the evolution of cryptocurrencies have gradually adapted to the occurrences of the new generations. When talking about unrealistic sales with the use of NFTs, we could mention several categories. ​ One of them is Nyan Cat, a Gif from 2011. According to data from the New York Times, the moving image of a cat with a pop-tart body was sold for approximately $600.00 in February 2021.

Another unreal NFT sale was a tweet. This happened in 2021 when Jack Dorsey, CEO of Twitter and Square, sold his first tweet as an NFT on Cent's Valuables platform, a blockchain-powered social network. The sale was for more than 2.9 million dollars. The tweet read "Just setting up my Twittr," posted in March 2006. ​ It seems like an incredible success story in the new crypto market; a few words on a social network sold for millions of dollars for a new form of digital money, but the fervor did not last long. According to CNBC, there are certain limits to the NFT market, and they came suddenly. By April 2022, Twitter announced that they would sell the NFT on Open Sea, but the surprise came when the highest bid for the tweet, which a year ago was worth $2.9 million, only reached a bid of 9,968, a drop of 2,905,867 in value. Another case of non-success in NFT investing is in art. Martin Mobarak, a cryptocurrency entrepreneur, burned a drawing by Mexican painter Frida Kahlo "Sinister Ghosts" to create NFT art. The entrepreneur argued that the value of the artwork would increase by placing it on the blockchain. ​ The events occurred at the end of July of this year. Mobarak acquired the drawing in 2015 at an estimated cost of $10 billion. The drawing comes from a personal diary of Kahlo from 1954, considered one of the most famous painters in Latin America. Mobarak's intention was to sell 10,000 NFTs of the drawing for charity, but so far, he has only sold four NFTs, raising $11,000.

In an interview for CNN, businessman Martin Mobarak stated that his action should be seen as an act of rebirth in digital art. This is a vision that could be debated. For now, the businessman could have problems with the Mexican Government if they decide that it was a lack of a piece considered a cultural representative. Mobarak could enter a procedure for the Declaration of the Artistic Monument. ​ In the CNN interview, Luis-Martin Lozano, an Art Historian, believes that the cultural and artistic value of a property is not monetary. What we could discuss in the name of the digital revolution is the evolution of the Metaverse and blockchains.

Can the artistic representation of culture be sold and burned as the businessman Mobarak did, to rise like the Phoenix bird from the ashes to the Metaverse? Or should we focus our attention on generative art?

Not everything is bad

One of the problems that NFTs have presented this year has been security concerns. Speculation, piracy, and fraud are rampant. The Verge comments that the certificate of authenticity is not so much a certificate as a link to a record of your purchase. Therefore, assuming the server to which the links point goes down, the proof of ownership is lost, and you will not get it back.

Some other problems may include that the industry, its management, and investment are a bit confusing. Payment methods are limited, and they offer a bad user experience, with high fees.

On the other hand, some believe that most markets have recently failed because they were not ready to start the development of NFTs, as they were going faster than they were prepared.

Recently, Interexy showed figures on the growth of NFTs in early 2022 and estimates for the following years. They suggest that the NFT market will grow from 3 billion dollars at the end of 2022 to 13.6 billion dollars by the end of 2027, with a compound annual growth rate of 35.0% during the forecast period.

The relationship between art and money could be taken positively, as it has helped to make transparent the romanticism that has been given to these two for decades without making so much noise. It brings out the true meaning of the Cultural Capital that Pierre Bourdieu told us about, showing us the scope of art, media, and advances in generative art.

Not everything is bad, even though its problems are things that can be remedied in the course of digital evolution.


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