After the news about Beeple selling his artwork for $69M, many crypto enthusiasts got interested in NFTs and how they work. While most of the people who are in the industry already have an idea of how NFTs work, it is still a fairly new idea to the general public or to people who are new to crypto and blockchain technology.
The most recent episode of LATOKEN VCTV solves this by discussing where NFTs came about and what exactly they mean. During the interview, the founder of BAND Royalty, Noble A. DraKoln gives his insights regarding NFTs, its history and future trends. This post is a summary of this particularly interesting episode of VCTV.
What are Non-Fungible Token NFTs?
Noble explained in simple terms, let’s say there is Alex and Helen, and both of them live with their respective families. There is no way to switch them in these families without anyone noticing the change. It sounds funny, but the same concept applies to NFT. They are unique, one of a kind, and can’t be used as a currency (unlike BTC, and ETH, or others).
When we sell a bike for $1000, and after a week, that customer comes back and wants to return the bike, and get his money back. He doesn’t need exactly the same dollar bills, he just needs the same amount of money. Because the dollar is also fungible, so is bitcoin. As long as the amount is the same, it doesn’t matter. This is the key thing that distinguishes NTFs from regular tokens (aka “fungible token”)
How are NFTs changing the blockchain landscape and the logic behind recent sales of big-ticket NFTs?
Noble mentioned the historical trends about how nouveau riche, newly wealthy people within a new industry, have always looked for places to store their wealth, and mostly stored it in the form of art pieces. According to him, the similar trend is happening in blockchain, and people stocking up on NFTs are the nouveau riche of the digital marketplace. People have observed how crypto grew and changed in a short period of time. At one point, you could have bought 50,000 ETH for $2500, but now, 1 ETH is more expensive than that.
The fact that the founder of Twitter sold his first tweet for $2.9M, means that his tweet is part of that digital history. The logic behind it is more related to psychology, than to blockchain, this sale is just like people appreciating and paying generously for historical items or real estate. Only time will tell if a certain NFT was a good investment or not.
How are NFTs changing the world as we know it, and how is it going to continue to change?
Before when you had to declare or have proof of ownership, you had to go through multiple processes and visit a few offices. It is still the case today, but with the implementation of NFTs, it is going to change in the near future. By declaring ownership via NFTs, it completely eliminates all the back and forth paperwork and discussions, and it stores it in blockchain. Possibilities are limitless, and we are starting to see companies doubling down on NFTs and helping their customers to create new streams of income. Noble has the same mission with his BAND Royalty.
According to him, most people do not understand how music royalties work. We assume that if Justin Timberlake sang the song “Mirrors”, that means he owns it. But there is an entire list of people who worked on this song, and the singer just happens to perform it. There is an agreement behind every song and among other things, it states who get royalties. It is not just one person, it can be many different people benefiting from the same song or piece of art. In Noble’s own words: “We really want to give people an opportunity to be a music mogul, by owning the NFT art, and then giving them a chance to step into the music royalty space by having the opportunity to stick with us.”
During the interview Noble A. DraKoln, founder of BAND Royalty, expressed appreciation for LATOKEN team and the response BAND received from the recent partnership with VCTV to do an episode and lottery of 1 NFT and 1ETH.
This episode was interesting to both, newbies and seasoned blockchain and crypto enthusiasts. This post is a summary of the episode, but there are much more insights that are worth knowing. You can watch this episode with Noble A.DraKoln, the founder of BAND on VCTV, here.
About LATOKEN
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.
