Crypto is having a moment and starting to make its way into the entertainment and media space. A digital asset called non-fungible tokens, also known as NFTs, has seen a huge spike in popularity over the past few months, and many are starting to take notice.
The sudden interest in NFTs is likely part of the reinvigorated interest in the crypto space amid the COVID pandemic. Now the main question is whether the NFT trend is just a passing fad or is here to stay.
NFTs are types of digital assets in a blockchain with completely unique codes, and they can turn digital objects such as music, art, videos, images, and even tweets into assets that can be owned and sold. Unlike bitcoin and other cryptocurrencies, NFTs cannot be traded against each other.
While NFTs have been around for years, sales only started to gain traction in the last month.
According to the NFT data tracking site NonFungible.com, there have been over 160,000 NFT sales in the past month, and things have gotten so hot lately that the largest NFT marketplace, OpenSea, has announced that trading volume on the platform has been multiplied by more than 100 in the last six months, with monthly sales on OpenSea reaching $95.2 million in February.
Many industries are seeing NFTs creep into their market, but entertainment and media are seeing the bulk of the activity and interest.
Paris Hilton was the first celebrity to explore NFTs in August 2020, but we didn’t really talk about it at the time. Then in late February and early March of this year, things really took off.
Kings of Leon were the first band to sell a brand new album as NFT, and Canadian singer Grimes sold $6 million worth of NFT art in less than 20 minutes.
EDM DJ 3BLAU sold a NFT collection for a whopping $11 million at auction, and fellow DJ Steve Aoki’s NFT art was bought by former T-Mobile CEO John Legere for a reported amount of $888,888.88.
In the sports world, the NBA is sell NFT strengths thanks to a new product called NBA Top Shot. According to the official website, there were already over $400 million in NBA collectibles sales, and a LeBron James highlight sold for over $200,000.
Media outlet Quartz announced it would sell NFT’s first-ever article, and The Associated Press sold a painting for nearly $200,000.
The short “Claude Lanzmann: Specters of the Shoah” was the first Oscar-nominated documentary to be released as an NFT, and Hollywood talent agency UTA worked with singer Halsey to organize an NFT auction for sell his art. UTA is planning other NFT projects in the coming months.
The slew of celebrity and artist NFT announcements proves things are heating up at the intersection of crypto and media, and there could be several reasons why artists and creatives might explore the use of NFTs .
First, they provide a way to create unique works of art and sell them, sometimes for high prices. Additionally, NFTs could offer protection to artists by minimizing issues of copyright infringement, piracy, and even plagiarism.
Proponents argue that blockchain and digital assets such as NFTs are the future of entertainment, while critics say it’s just another fad that will eventually fade. NFTs may be getting our attention now, but it’s the longevity of the trend that will be the main focus going forward.
