What is an NFT? Who makes NFTs? Are NFTs valuable? Your questions answered
You may have heard of NFTs or non-fungible tokens, but most people don’t know what they are or how they work.
Digital assets have become hot, and some Aussies have made money.
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But are they excited, or are they here to stay?
In simple terms, an NFT is oan official proof that someone owns a particular digital object – almost like o piece of the internet.
“They are about art, sports, and great moments; even real estate is being turned into NFTs,” Jordan Fogarty, CEO of Be Media by Animoca Brands, told Sunrise.
One of the best ways to understand how they work is through art.
Bringing art to life
Future Art Is Vivid is an immersive one-night NFT crypto art event held in Sydney as part of the Vivid Festival.
The showcase showcased new artwork from 24 of the world’s leading NFT crypto artists.
Sophie Tea, who originally disrupted the art industry by selling her paintings exclusively through Instagram, is one of those artists.
Sophie Tea and Shaun White at Future Art Are Vivid. Credit: Sunrise
She had to expand her skills to move into the digital space.
“I’ve been painting for so long now and just didn’t have these skills,” she told Sunrise.
“I just think that as an artist, you always want to reinvent yourself and find new ways to express yourself.”
Instead of creating traditional art like in a physical painting, Sophie creates digital animations – the whole idea is that you buy the original artwork, and no one can copy it.
Serwah Attafuah is a digital artist, musician, and painter based in Western Sydney who has successfully sold NFTs.
Serwah Attafuah shows off her artwork in Sydney. Credit: Sunrise
“My second NFT sold for 10 Ethereum, which was about $24,000 at the time, so that paid off for my car,” Attafuah said.
“Before that, I had only sold prints for up to $50, so this is a completely different game.”
Once digital art is created, it needs to be displayed somewhere for people to buy.
Sophie uses a platform called Nifty Gateway, which partners with tech giant Samsung so that you can see her digital art on her TVs.
Serwah teamed up with Yahoo and devised a way to scan a QR code and place the digital art in real-life situations.
Every day, Aussies aalso embraceNFTS, like Brisbane’s mom, Kate Boddington, who is an addict.
“I invested about $400 in an NFT just before Christmas 2021,” she told Sunrise.
“That same NFT was worth about $6,000 in February.”
Her portfolio now includes 40 pieces and is valued at around $50,000.
Lance ‘Buddy’ Franklin’s 1000th goal could soon be an NFT. Credit: DEAN LEWINS/AAPIMAGE
Animoca Brands’ Be Media has partnered with the AFL to allow it to release its official NFTs, including iconic sports moments such as Lance ‘Buddy’ Franklin’s 1000th goal.
You could be one of the few people who own the original video, and there could be a lot of perks that come with that ownership.
“Membership upgrades, free memberships, hospitality upgrades, countless free prizes that AFL fans can only access if they are a member of this community,” explains Fogarty.
But before you buy an NFT, the same rules apply to purchasing any product or service.
“If you’re there to make money, make sure you do your due diligence,” Boddington warned.
“Unfortunately, some projects just try to steal people’s money and shut it down once they’ve sold everyone their NFTs.”
But those who create legitimate work walk to the bank.