On Wednesday September 1st, 2021, Crypto Finance hosted its annual summer event and gifted its attendees a non-fungible token to thank them for the trust placed in the company over the years.
NFTs are buzzing and no headline goes about without referencing a record transaction involving them. Underneath the hype, though, NFTs are generally, but not exclusively ERC721 tokens that live on the Ethereum blockchain. They are unique representations of digital assets (i.e. non-fungible) and come in all shapes, sizes and use cases. They frequently enter conversations when discussing digital art collectibles, but are gaining momentum in gaming, finance and other fields as well, for example as commemorative representations of a milestone, accomplishment or event.
NFTs gained great notoriety following a series of multi-million dollar sales, pushing the market to focus on their valuation. In broad terms, their value is tied to scarcity, rarity and utility, but it can be argued that it is more dependent upon the subjective view a person may have about their investment potential or aesthetic appeal rather than their intrinsic nature. From the perspective of digital art, highly valuable tokens tend to be associated to limited edition collections which carry utility beyond the media types they represent. For example, some NFTs unlock in-game tools, while others grant access to private online groups or real-world events. Overall, whether NFTs are the next big thing or not, their market is still in its infancy and only time will be able to substantiate their current popularity.
It is important to note that non-fungible tokens, just like fungible ones, require to be safeguarded to prevent them from being lost or misappropriated, thereby placing the same focus on proper custody. Crypto Finance’s infrastructure allows its clients to securely store and transact NFTs between wallets, providing the same level of protection and peace of mind that governs all other digital assets activities provided by the firm.
To learn more about NFTs and their use cases, read the recent posts by Fabian Zbinden, Business Development Manager at Crypto Finance Brokerage Services, here.
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