Find out what the F#@k NFTs are and how Logan Paul can sell 10-second YouTube clips for $15,000 via NFT
Remember Nyan Cat? The block-pixelated flying cat with a Pop-Tart body emitting a rainbow vapour trail created by Chris Torres a decade ago?
Last month Torres put a one-of-a-kind NFT version of his creation up for sale online. Nyan Cat sold for $580,000. Torres was astonished.
NFT stands for Non-Fungible Token. The token is non-fungible because it represents a unique object and is itself unique. “Like the cryptocurrency Bitcoin, NFTs run on blockchain technology. Unlike Bitcoins, each NFT can be a unique digital property—one NFT can represent ownership of a specific work of art,” writes James Tarmy in Bloomberg.
“NFTs rely on blockchain technology to designate an official copy of a piece of digital media, allowing artists, musicians, influencers and sports franchises to make money selling digital goods that would otherwise be cheap or free”, according to Erin Griffith writing in the New York Times.
In an NFT sale, all the computers hooked into a cryptocurrency network record the transaction on a shared ledger, a blockchain, making it part of a permanent public record and serving as a sort of certification of authenticity that cannot be altered or erased.
As the social web allowed society to disintermediate traditional media and to start sharing content online directly with like-minded people bypassing journalists so NFTs are disintermediating the art industry’s middlemen. Importantly this allows creators to sell directly to super fans, collectors and financial speculators.
Importantly NFTs have an in-built feature that will pay you a percentage every time the NFT is sold or changes hands, making sure that if your work gets super popular and balloons in value, you’ll see some of that benefit.
The buyers are usually not acquiring copyrights, trademarks or even the sole ownership of whatever it is they purchase. They’re buying provenance assurance - the knowledge that their copy is the ‘authentic’ one.
Logan Paul launched his own NFTs last month. The appalling Paul brother partnered with Bondly a portable peer-to-peer exchange that enables trading across any chain, through any medium, to create and distribute the tokens.
The set of 3,000 NFTs launched on February 19th netting $3.5m on the opening day according to Tiffany Zhong founder of Islands - a company dedicated to helping creators host paid-for content for their superfans.
Logan Paul made $3,540,456 in 1 day.— TZ (Tiffany Zhong) (@TZhongg) February 20, 2021
• Dropped the 1st Logan Paul NFT yesterday
• 3000 NFTs available
• Price: 1 ETH per NFT (1 ETH = $1998 rn)
• Sold 1772 NFTs so far
• $1M in sales in first 30 min
• 3 buyers will win 1st Edition Pokemon Pack (~$40K) pic.twitter.com/FuLdZYaNnW
Paul ultimately raked in more than $5 million selling Pokemon-inspired NFTs of himself for one Ether each.
In the process, the YouTuber introduced NFTs to his millions of YouTube, Instagram, Twitter and podcast fans.
NFTs have been around for almost a decade but low interest rates, spiking cryptocurrency prices, easy-to-use online auction houses and the froth of conversations in rooms on Clubhouse have brought renewed interest.
The NFT market surged to $338m in 2020 making it 8x of its 2018 market size according to a new report by NonFungible.com with support from L’Atelier.
On Monday Zhong reported that Justin Blau, a D.J. and early crypto adopter who goes by @3LAU just sold 33 NFTs for $11,684,101.
Artist & early crypto adopter @3LAU just sold 33 NFTs for $11,684,101.— TZ (Tiffany Zhong) (@TZhongg) March 1, 2021
• 1st NFT album
• Top bidder paid $3,666,666
• Broke the record for a single NFT auction
• Has previously generated 4.3m in sales from NFT drops
• In 2018: launched 1st crypto music festival pic.twitter.com/djxLdRm2FX
3LAU, turned to NFTs after the Covid-19 induced lockdown put his tour dates on ice. Instead he and his art director, Mike Parisella, began selling unreleased songs with exclusive visual effects as NFTs.
NFTs can be a positive force for creators. When 3LA is able to tour again he could limit resale prices for tickets to his gigs through selling tickets as NFTs, for example.
There’s also the possibility of … less positive forces. I don’t know, say you were an appalling Paul brother. You may be tempted to sell NFTs of 10-second YouTube clips.
'Break Moment #10 - Stoise' just sold for $15,000. Here's what you get for your money:
Total mint of 3 NFTs for this moment. This product represents digital ownership of the NFT video of this moment only.
This does not represent ownership in a card, a physical asset or of the YouTube video. This is not a product sanctioned by Nintendo® , The Pokémon Company®, The Pokémon Company International® and all related properties. All Rights Reserved.
Items in this collection represent the most important moments aka the 'Break Moments' from the Logan Paul $1m Pokémon® First Edition Box break on Feb 27, the 25th Anniversary of Pokémon®.
Each item from the list entitles the buyer to the following perks:
- Signed 1st Edition Energy Card (sent the following week to first buyers)
- Maverick Club Membership for One Month
- First Buyers rights for the NFTs of Logans Next Fight
- Logan Paul 'Spirit Guide' PolkaPet Card
As Prof. Scott Galloway says: Life is rich.