Non-fungible Tokens
When asked about possible investment options a few years back, one would have probably said stocks or bonds. But over a couple of years, alternative investment options have sufficed. These alternative investments do not fit into the conventional equity or income or cash categories. Think real estate, collectibles( rare wines, art, vintage cars, etc.), commodities, hedge funds, private debt, private equity. In today’s article, we would focus on a subset of collectibles for art known as non-fungible tokens.
The term “NFT”, was created by Kevin McCoy and Anil Dash who made the first NFTs. These collectibles are termed non-fungible because there is only one of its kind of that art piece or asset and it is irreplaceable. Once it becomes replaceable, it can no longer be termed non-fungible. NFTs are digital assets that use blockchain technology to verify ownership and prove authenticity. They are used to represent a wide range of digital content, including artwork, music, and videos. NFTs are unique because they cannot be replicated, and each one is different from the others.
Nigeria, like many other countries around the world, has been swept up in the excitement of NFTs or Non-Fungible Tokens. This wave of digital art and collectibles is revolutionizing the art industry, and Nigerians are not left out. In Nigeria, NFTs are fast becoming a new way for artists and creatives to monetize their work. For years, artists in Nigeria have struggled to get their work recognized and monetized, but with the advent of NFTs, the narrative is changing. Now, artists can create digital art and sell it directly to collectors, bypassing the traditional art market. Jacon Osinachi was the first Nigerian artist to mint his work as an NFT in 2017, then Anthony Azekwoh and many other artists have also hopped on the trend.
NFTs have also made it possible to access and collect unique digital art from around the world. Before now, there were hurdles to accessing art in international spaces, but with NFTs, investment and ownership of digital art is possible. The emergence of NFTs has also led to the rise of new marketplaces in the economy, such as OpenSea and Rarible. These marketplaces provide opportunities to create, sell, and buy NFTs using cryptocurrency. This is an exciting development, as it allows local participation in the global NFT market and creates an avenue to earn income. NFTs have also created opportunities for businesses in the art and entertainment industry. For example, BNXN fka Buju created an NFT project termed “HeadsByBuju” which was released as the cover image of his single Italy.
To Learn
One major advantage of NFTs is its ability to curb issues of copyright, the emergence of NFTs help to provide authenticity and originality. It protects the artist or artiste and gives them a sense of ownership. This advantage has been a great one in the Nigerian space.