The next big thing in collectibles is something called a Non-Fungible Token (NFT). An NFT piece of art created by Australian artist BossLogic of Francis Ngannou sold for $284,000 on Monday.
A non-fungible token is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital term, and thus they are not interchangeable. It is the latest thing in collectibles as athletes are getting into the space due to the fact of its self-authentication and uniqueness.
Notably, this past weekend, Saturday Night Live aired a skit which poked fun at NFTs. But, at the same time explained the trend.
The NBA is heavy into the space as NBA TopShot has taken off. People can buy and sell short video clips of ‘moments’ with prices that have gone up. The difference here is that the holder owns the clip in the NBA TopShot universe but do not have the exclusive rights for its use.
Coming off of his win on Saturday for the UFC Heavyweight title, Ngannou is going to be a most sought after UFC star and this NFT purchase shows that he already has a backing.
Prior to the fight, Sportico reported that Ngannou was going to release the above-pictured NFT with a starting price tag of $999. If he won, he’d release two more on MakersPlace Market. Those two would release 11 limited edition pieces. Per the story, the piece “will also come with a set of signed gloves, sealed along with sand from the mine where Ngannou worked while growing up in Cameroon.”
Payout Perspective:
This is the new trend in collectibles and just like bitcoin there does not seem to be an end in sight to the increase in value. While the piece sold for $284,000, the belief is that Ngannou’s digital piece will increase in value over time since it is a 1 out of 1. One can imagine that MMA will soon get into this space selling moments of fighters for purchase similar to NBA Top Shot.
Leave a Reply