WTF is NFT, Crypto Regulations and HODL
The way we bank, use and invest is changing. And women have a unique opportunity to get ahead when it comes to what’s next for money. Whether it’s a world of cryptocurrency, decentralized finance, Web3 … or something completely different. Welcome to Future-Proofed: Your monthly resource for learning all about the money of the future, from the basics and lingo to wild news and hot coins.
WTF are NFTs?
The story
Non-fungible tokens (aka NFTs) are digital assets that are bought and sold online and registered on the blockchain. They can be almost anything: art, music or even Burberry.
How can you own a digital asset?
Blockchain technology make it possible. For example: When an NFT – like a World of Women NFT – is bought or sold by someone (hey, Reese Witherspoon), the buyer receives a digital certificate of ownership in the form of a unique entry on the blockchain. Which is a big deal for NFT enthusiasts. Because anyone can download an image. However, only one person can actually own the original. Note: The artist or creator may still retain the copyright to the work.
And what makes an NFT worth anything?
No two NFTs have the same value. Each is unique with unique features. And the more unique features an NFT has, the rarer it is. And without a doubt, the rarer it is, the more valuable it becomes. Take the World of Women for example. Only 17 out of 10,000 NFTs show women wearing a pair of earrings. Makes them harder to obtain than a piece from Gucci and Balenciaga’s Hacker Project collection.
But not all NFTs are valuable.
Right. In 2021, the NFT market was warmer than Phoenix in July. But last year’s exponential growth led to many new NFT collections being created in 2022, which has changed the market. According to a report from the NFT computer company Nonfungible.com, there are fewer buyers chasing too many projects. Less than half of last year’s traders are still active. And although each NFT is unique, it is not valuable in itself. NFTs need a market (aka collectors) to make them worth something. So projects without a community of potential buyers may be dead on arrival.
So what can you do with NFTs?
You can collect them. Like art or bottles of good wine. And you can show them off on Twitter (hey, Justin Bieber and Madonna). Also, owning a popular NFT is like being part of an exclusive club. Think: To be invited to sit with Plasten for lunch. Tips & Warnings Some NFT collections are hyper-exclusive like the Bored Ape Yacht Club. While others, like the World of Women, promote inclusion.
Aren’t NFTs on their way out?
The NFT market may cool down, but it will not disappear immediately. Partly thanks to the meta-verse and the big brands that get into virtual reality early. Gucci has already entered the metaverse. Nike has dropped virtual sneakers. Even Walmart is reportedly betting that NFTs will be “one thing” in the metaverse. Long story short: Virtual reality can change how collectors interact with NFTs. And carrying a virtual Birkin bag can be as fashionable as walking down Fifth Avenue with a real one.
theSkimm
NFTs are a new way of thinking about digital assets and their value. The market may contract after the first hype. But collectors are betting that NFTs play an important role in metavers.
And also … this
What do NFTs and my Rollercoaster Tycoon theme parks have in common …
They are both “mini retail empires. “
Ask for a friend
Question: Is crypto-regulation contrary to the origin of cryptocurrency?
Moe Vela: Early cryptoadoption was a form of revolution. And it was a revolution that had a very loud and clear message: ‘The system does not work for us. We feel left out. We are deprived of our rights. We feel helpless and voiceless. We do not have access to the same value creation as others do, so we will create our own system. And the power of crypto is in that community. It’s in that network. But with that came the volatility you see in the turbulence today. Regulators need to engage in a balancing act, creating protection for investors who are not yet up to date or who are afraid or unaware of crypto and how it works. But also empower and encourage people to come in when they learn about it and what it means. They need to create a regulatory environment that is inviting.
Moe Vela is a lawyer and former senior adviser to the White House to then-Vice President Joe Biden. He sits on the board of TransparentBusiness. His answer is edited for length and clarity. You can read the full interview here.
Things to know
HODL
Aka hold on for dear life. Which is crypto speaks for a long-term strategy that favors holding on to coins even when prices fluctuate (hey, Bitcoin volatility). Some crypto fans use social media (think: Twitter) to signal their plans to HODL when prices fall. Because “we are all in this together.” Cue High School Musical.
Hot Off the Web
Pop Quiz
Last year, Christie’s became the first major auction house to sell an NFT. What was for sale?
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“Weekdays: The first 5000 days”
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Boed Ape Yacht Club # 8817 ”
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“Disaster Girl”
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“CryptoPunk # 5822”
Pop Quiz Answer:
A: Beeples “Weekdays: The first 5000 days“Which sold for over $ 69 million, making Mike Winkelmann one of the three highest paid live artists in the world.
