WHAT ARE NON-FUNGIBLE TOKENS (NFTS)? Non-fungible tokens (NFTs) are a new type of virtual asset that have fuelled much of the growth in the metaverse. An NFT represents an intangible digital item such as an image, video, or in-game item. Owners of NFTs are recorded on blockchain, allowing an NFT to be traded as a stand-in for the digital asset it represents. The NFT market has surged during the pandemic with $2.5 billion in sales for the first half of 2021, compared with just $13.7 million a year ago. Some NFT enthusiasts see them as collectibles with intrinsic value because of their cultural significance, while others treat them as an investment, speculating on rising prices. A digital-only artwork "Everydays - The First 5000 Days" by American artist Mike Winkelmann, known as Beeple, was sold for nearly $70 million at Christie's in March in the first ever such sale by a major auction house.
Reuters