Before the age of the smartphone, smartphones allowed the average man on the street to take selfies with his favorite celebrities, and autographs and memorabilia were in high demand among collectors. The value of these realistic, original and rare memories is of course high and remains so to this day.
However, thanks to the benefits of blockchain technology, digital collectibles have become a modern signature or unique and priceless work of art. People need look no further than the $ 69 million auctioned off for the now popular Every Day: The First 5000 Days, a digital collage created by digital artist Mike Winkelmann, better known as Beeple.
With almost 5,000 Winckelmann digital art, the Digital Art Auction is the most expensive NFT ever sold at the world-famous Christie’s Auctions. The crypto art quickly hit the auctioneer with the hammer, not only shaking the digital collectible, but instantly bringing NFT elements into the mainstream.
The art world is not the only industry that is enjoying the fruits of NFT’s popularity. Numerous icons, brands and sports teams have entered the fight with trading cards and digital memories that have also raised millions of dollars in bids from NFT collectors who love the sport.
NFL veteran Rob Gronkowski has set the bar high for the NFT sports field with a recent auction of limited edition collectibles to celebrate his four successful NFT campaigns. Each successful NFT title was represented by an NFT trading card of 87 digital copies, and one-fifth of the Career Highlights Refractor Card was created as a tribute to these four successful campaigns.
Gronk was able to auction a total of 349 trading cards plus a one-time career-focused card to 95 different owners. The total turnover at the auction was 1014 ethers ($ 1.8 million), and a one-time sale of NFT Career Highlight for 229 ETH for around $ 435,000.
Digitally signed tweets have also become as valuable as NFTs. Twitter CEO and co-founder Jack Dorsey sold the platform a token copy of his tweet and his first tweet for $ 2.9 million. Proceeds from the sale were donated to an African charity that supports efforts across the continent to combat the ongoing COVID-19 pandemic.
Meanwhile, it is still controversial whether all the works of art on display are of value to the industry, for example, some commentators, even outside the ordinary crypto community, have begun to question the price tags of NFT works of art, such as the only red pixel for sale for 900,000 dollars.
Antifouling tokens have taken over the cryptocurrency area in 2021, as various forms of digital collectibles have attracted price tags of several million dollars. But are there better uses for the fast-growing space than just selling NFT as art?
As these astronomical values for various NFTs continue to amaze viewers, the question arises as to whether the prices paid for digital acquisitions create a hype that is at odds with other potentially more profitable uses of the NFT space.
Vitalik Buterin hopes to support NFT for the blockchain ecosystem
Ethereum co-founder, Vitalik Buterin, started the discussion on NFT through a blog post on his website, where he expressed hope that NFTs will be widely used to fund or support efforts and organizations working towards social goals.
Ethereum co-founders have handled the relatively low percentage of funding that critical elements of various blockchain infrastructures actually receive in their ecosystems. Using Ethereum as a prime example, Buterin drew a stark contrast between the approximately $ 37 million spent on daily blocking rewards and transaction fees, and the $ 30 million spent annually on research, protocol development, and momentum for the blockchain ecosystem.
Buterin’s article explores the concept of legality and how and what society considers legitimate, plays a crucial role in how this object is accepted or used: “Legitimacy is a model for accepting a higher order.”