The Baby Birkin sale is just the tip of the iceberg of how much interest this emerging type of ownership has stimulated among collectors and investors. Within months, the world has seen plenty of monumental art pieces and collectibles converted to NFTs and break sales records. Twitter’s CEO Jack Dorsey’s first tweet was sold as an NFT for over $2.9 million. One of NBA Star LeBron James’ video highlights had a record of $208,000 as of the most expensive sales on NFT marketplace NBA Top Shots. In March this year alone, NFT Marketplaces have generated over $1 billion in sales, according to CryptoSlam.
NFTs can apply to not only digital art pieces or virtual collectible items but basically anything – text, audio, video clips, or even a physical item – by creating a nonreplicable, immutable digital identity that links to each item. The ownership cannot be faked, which means that to own an NFT is to own a valid one-of-a-kind object. Blockchain and distributed ledger technology are the underlying infrastructures that made this ultimate form of ownership possible.
In a broader sense, NFTs are groundbreaking because they can revive the world of rare collectibles, old memorabilia and historical items. Because everything is recorded and thereby connected on a blockchain, it creates a liquid market where they can be openly listed, viewable and tradable for all blockchain users while being immune to piracy and forgery. By mainly improving the liquidity issue that has been known as a restriction of the collectibles market, it is not hard to imagine the transformational influence the NFTs will, if not already, bring to the overall market.
At the center of this market transformation, a blockchain-powered social media company has established an exciting model to serve both sides of the market. UTU.ONE, which has the tagline “redefine social value”, is a social app designed to combine elements of social interaction, creativity sharing and an open NFT marketplace onto its real-people-only, community-based social platform.
In its latest announcement, UTU is teaming up with the direct descendants of Charles Dickens through their Charles Dickens Heritage Foundation to create a member-based community centered around the proud legacy of this very famous English author and agent of social change. Some rare Charles Dickens memorabilia will be resurfaced as NFTs and listed on a marketplace exclusive to the community members. According to the company, becoming a member-only requires one or more of the said community LION tokens – a system often seen in blockchain environments. Users can earn the unique LION tokens simply by being active in the app (or through direct purchase). The LION tokens, based on Charles Dickens own personalized seated lion heraldic symbol, will also facilitate the purchase and sale of these very special and highly collectible NFTs.
This is an excellent example of NFTs applied to a previously untapped market. The open, transparent and immutable nature of blockchain enables a lucid market for collectibles and rare items that were previously difficult to find a fitting market. In the case of UTU, its market is backed with social influence as users gather by shared interest. They can also discuss, explore and share their creations. It is not hard to imagine that the value of the collectibles will be amplified by being placed in a group of like-minded, vision-sharing individuals.
Among the many evolutions that NFTs will bring, owning a rare item with traceable authenticity is perhaps the most significant appeal to collectors. Nothing beats the gratification of genuinely owning a piece of treasured moments or history.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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