A lot of people have been confused about what NFT is. It’s hard to pin point what it does, is it a crypto currency? Is it BitCoin? Can I exhange it for cash? Well, I hope I some it up well.
What is NFT?
The acronym stands for Non-fungible token. Basically, non-fungible means it can’t be exchanged for cash or replaced for anything else. NFT is something only you can have…not completely. An NFT can be duplicated or rather copied. One person or more can have the original piece of an NFT if multiple original copies are made and the rest aren’t the original piece. Think of it as art collection. One original Picasso painting (worth a lot) and millions of replicas for close to nothing. Non-fungible tokens can be anything digital. It can be art, drawings or painting, a voice recording or music and more.
Earlier this year Hennessy released their NFTs on BlockBar a spirits-focused NFT platform. To clarify, the NFTs include actual bottles of Hennessy. The digital bottles correspond with physicals bottles that customers can order and drink. Original owners also have the option to engrave a personalised message on the carafes and visit the Hennessy estate in Cognac, France. In addition, designed into each NFT and physical bottle is an engraved carafe, cork holder, pipette, authentication plate, and other trimmings. The Hennessy NFTs retail for $226,000, that’s about R4000.
Nike Acquires RTFKT
Last year December, Nike acquired a virtual shoe company that makes NFTs and sneakers for the metaverse. As a way to tap into the virtual and gaming world. John Donahoe, President and CEO of NIKE, Inc. said “This acquisition is another step that accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture.” Nike did not disclose how much the deal was worth.
NFT might be the growing trend for creatives to sell their work with the emerging metaverse. It is interesting to see how brands will tap into the the digital world in 2022.