Partyhat Weighs in on NFTs

SAN JUAN, PUERTO RICO - November 12, 2020 - It stands for non-fungible token, and some have already sold for millions. NFTs are a new kind of collectible, and like any collectable worth owning, their valuation is based on scarcity. NFTs are one-of-a-kind digital assets that can represent anything from art to music, and some speculate they could be the future of collectibles.

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NFTs are sold and stored on blockchains, the same technology that powers cryptocurrencies like Bitcoin and Ether. Blockchains record ownership of an NFT once a transaction has settled, and this can’t be disputed, even if the NFT’s original creator wants to reacquire or remove the asset. 

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These digital assets have existed for some years, but have only recently made headlines. Part of the reason for this is the money now changing hands: an NFT featuring the famous Nyan Cat recently sold for $580,000. Now celebrities and brands are taking notice, including YouTuber Logan Paul, Linkin Park’s Mike Shinoda and the NBA, all of whom have or are planning to offer their own NFTs. 

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Partyhat currently has no stake in NFTs, but is watching the space for further developments.