The card that allows you to meet Khabib is now costing $330,000!
Explain what the NFT even means?!
Non-Fungible Tokens (NFT) is a virtual item in blockchain or a non-fungible token. In simple words: it is a unique “code” that confirms your right to own a certain digital asset.
To make a rough analogy, it is similar to the CVV code on your bank card, even a virtual one. It’s just your card, although you can generally draw the same one. In the same way, an NFT token secures your ownership of the product you purchased. It is the virtual version or copy.
The code cannot be faked or stolen and is saved on blockchain platforms. This does not mean that the same picture cannot be drawn – it is possible, and there have even been cases of successful NFT token faking. However, the original is still the original.
Why do these pictures cost so much?
Creating a token is not the easiest procedure. First, the product has to be transformed into a token, passing through a minuting procedure. Time, electricity and commission cost money. Most importantly, NFT is trending right now. The starting price for the lot is established by the author or the auction house. And then the figure is multiplied by the author’s fame and simple hype.
A projection of a painting of the Chirkei hydroelectric power station had been bought from the famous Russian artist, Pokras Lampas, for two million rubles. At the moment, it is worth a million more.
Injective Protocol, a blockchain company, has taken a high-profile action. It bought an anonymous Banksy stencil called Morons (White) from New York’s Taglialatella Gallery for $95,000. Furthermore, the Injective Protocol burned the stencil sheet and “turned” it into a digital copy online.
“It’s ironic that one of the paintings of this sketch says: «I canʼt believe you morons actually buy this shit».
How does sport go in the NFT?
There are two directions: the athletes themselves as the objects for content with NFT tokens and NFT as a business directed on interaction with the fans.
In the first category, athletes create their own cards or art with artists. One of the first was American football player Patrick Mahomes, who decided to launch the Mage Museum, a series of digital arts about himself worth $15,000 apiece. His NFL colleague Rob Gronkowski had sold $1.2 million worth of cards. In general, American athletes are very active in this direction. You can think of NFTs as the modern day version of sports cards.
MMA athletes have their own NFT collection from Khabib Nurmagomedov. There are three kinds: “Gold cards” cost 2.9 thousand dollars, “Platinum” – 29 thousand, and the single the most expensive lot “Diamond” – now trades for 290 thousand dollars (21 million rubles!). Its owner will have a chance to meet Khabib.
Of the footballers, Bayern Munich’s Alfonso Davies has promised an NFT collection. However, Lionel Messi was the brightest of all. One of the best players of the day unveiled three digital artworks created by renowned graphic artist Coda “BossLogic” Abdo.
The second category is business. The NBA is already exchanging cards with NFT tokens. Considering the sports card culture that has been developed in the USA, this is a very promising direction.
So here, perhaps America’s most famous footballer Tom Brady is planning to develop his own NFT marketplace, Autograph. Autograph cards from tennis player Naomi Osaka, hockey player Wayne Gretzky and golfer Tiger Woods are already available there.
How does NFT affect video games?
Beyond the same artefacts or collaborations (Burberry has announced a digital collection of items for the Blankos Block Party game), NFT tokens give you the opportunity to tie up specific characters or loot.
Spribe, famous for its Aviator game, is releasing an NFT collection in which it tries to link retro planes from the 80s with gambling.
Other examples include luxury clothing brand Louis Vuitton. The company has announced a separate video game, Louis: The Game for smartphones. In it, the manufacturer’s mascot will live a whole life, going through the history of fashion. NFT tokens will be a part of the built-in content.
Gaming companies aren’t standing still either and are taking a closer look at the trend that is gaining momentum. Riot Games, known for games such as League of Legends and Valorant, has licensed a trademark to produce NFT tokens associated with its mobile game Wild Rift.
The cybersport environment wasn’t left out. Popular European clubs OG and Alliance have launched NFT tokens with unique content featuring the stars of their squads. Later, they were joined by tournament operator WePlay and broadcast studio Maincast, as well as the organizers of the professional CS:GO league from Flashpoint. All of them promote their products or brand by basing fan content on tokens.
For now, NFT is not legally regulated in any way, and legally, authorship will still belong to the creator – artist, developer, publisher. But the ownership of a rocked character, for example, would be transferred more formally than it is now. It is already a new market.