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HomeTrendingNFTs Explained | Why a JPG Was Sold For $69 Million

NFTs Explained | Why a JPG Was Sold For $69 Million

The non-fungible token, or NFT, is the latest cryptocurrency phenomenon to go mainstream. And for the first time since Christie’s auction house sold NFT artwork – a collage of illustrations by digital artist Beeple for $ 69.3 million last week – NFT has suddenly gained the world’s attention.

In the simplest terms, NFT transforms digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.

Everything you should know about NFTs & Their High Going Prices!

Although this may be far from simple to understand, the payoff is huge for many artists, musicians, influencers, and such investors with spending the top dollar of NXT versions of digital images.

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For example, Jack Dorsey’s first tweet is now bidding $ 2.5 million, a video clip of a LeBron James slam dunk sold for over $ 200,000, and a decade-old “Nyan Cat” GIF for $ 600,000.
But NXTs are not new at all.

Cryptocurrencies, a digital trading game on the cryptocurrency platform Ethereum, was one of the original NXTs that allowed people to buy and sell virtual cats that were both unique and stored on the blockchain.

What is NFT? | What does NFT stand for?

Why JPG was sold for $69 Million
Why JPG was sold for $69 Million

Okay, sorry. “Non-fungible” more or less means that it is unique and cannot be replaced by anything else. For example, one bitcoin is fungible – trade one for another bitcoin, and you will have exactly the same thing. A kind of trading card, however, is non-fungible.

If you traded it for a different card, then you have something completely different. You gave up a Squirtle, and found the 1909 T206 Ones Wagner, which StadiumBlock called “the baseball card’s Mona Lisa”. (I’ll take their word for it)

Is Buying an NFT considered as Buying an Asset?

No. The real kicker is to understand the whole concept. The person who buys NXT does not own the real property.

“NXTs challenge the idea of ​​ownership: digital files can be reproduced infinitely and you (usually) don’t buy copyrights or licenses when purchasing NXTs,” at Stevens Institute of Technology in Hawken, New Jersey Associate Professor Jeffrey Thompson said.

JPG Sold For $69 Million?| Highest Price for a NFT

The sale marks a new milestone for the expansion of the NFT market, which has seen other high-profile transactions such as the sale of Nayan Cat, a popular meme from 2011 featuring an animated flying cat.

Created by Chris Torres at an online auction on the Crypto Art Platform Foundation last month, the piece sold for about $ 600,000. NFT, including NayanCat, is often purchased using the cryptocurrency Ethereum.

Biplab, another online marketplace on the Nifty Gateway, was sold by Crossroad last month for $ 6.6 million. The sale of a purely digital NfT work is the first step for Christie, bringing more legitimacy to the emerging form of digital origin.

Until last year, Biplab was selling art for $ 100. But with the sale of “Every day,” his work may be the most valuable in the art world today – unless another NFT tops this price.

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Why JPG Was Sold for $69 million? | Why are NFTs going for such high prices recently? 

There is a market for NXT, with physical collections such as Beanie Babies, baseball cards, and toys. Buyers are tech-savvy individuals who understand the idea of ​​a desire to buy a digital good, and probably made a killing with cryptocurrency this year.

Ethereum, for example, went from a mere $ 100 to a current price of about $ 1,800 last March. In some cases, buyers are flexing their digital wallets only to show how much crypto they have, but for others, there is a keen interest.

NXT is a big business for digital arts. Last week, artist Biplab saw his piece every day: First 5000 Days at Christie’s Auction sold for $ 69.3 million.

The chief operating officer of crypto exchange OKCoin, Jason Lau, said in the email, “There is a huge surge in demand for NFT related to art, in particular, due to their novelty and the creativity of early artists.

Whether it is a physical work with an attached NXT (think of it as a digital autograph and a proof of veracity), or a fully digital work (where NXT is art), this new medium opens up new avenues for collectors and artists.

Has been. Find out your connection with the artwork. ” This is also great for artists, says Lau. By selling digital art directly to those interested, an artist can start monetizing the work without trying to sell it in the gallery.

I’ll give you some more information, the JPG file is a piece of digital art created by Mike Winkleman, known as Bipl. The file was sold by Christie on Thursday at an online auction for $ 69.3 million.

This created a record for artwork that exists only digitally. Which raised the question for many people: what is stopping me from copying it and becoming an owner? Eventually, digital files can be copied ad infinitum, without loss of quality.

This is where non-fungal tokens (NFT or “nifits”) come from. NFT is the latest, most eyebrow-raising eyebrow of blockchain technology. Non-fungi means that the token has unique properties, so it cannot be combined with anything else.

For example, money is fungible. You can convert one dollar or bitcoin. Artwork is more like a house, each one is unique and cannot be broken into useful pieces. (Although sometimes it is just the location for homes that makes it different from its neighbors.)

But I made the analogy because we have a book for houses to keep track of owning a house. If you want to know who has a house, you see it in the book. You can think of an NXT as a certificate of ownership for a unique object, virtual or tangible.

What is Stolen NFT?

Even though blockchain technology is secure in itself, applications built on or around it, such as websites or smart contracts, do not achieve that security and can cause problems.

Users of the digital art marketplace Nifty Gateway reported that hackers took over their accounts and stole thousands of dollars worth of artwork over the weekend.

Someone stole my NFTS today at @niftygateway and bought today’s drops worth $ 10K ++ without my knowledge. The NFT was then transferred to another account.

Some victims reported that digital property stolen from their accounts was then sold on the chat application Disorder or Twitter. According to many claims, the underlying problem was that the thieves had hacked the owner’s accounts.  They then went on to sell, buy and resell the NFT.

How to buy NFT?

Essentially, any digital image can be purchased as NXT. But there are a few things to consider when buying one, especially if you are a beginner. You will need to decide which market to buy it from, what type of digital wallet is needed to store it,

And what type of cryptocurrency you will need to complete the sale. Some of the most common NXT marketplaces include OpenSea, Mintable, Nifty Gateway, and Raible.

There are also niche marketplaces for more specific types of NXT, such as NBA top shots for basketball video highlights or valuables to auction tweets for Dorsey’s current bid. But beware of fees.

Some marketplaces charge a “gas” fee, which is the energy required to complete transactions on the blockchain. Other fees may include converting the dollar to Ethereum (the most commonly used currency to buy NXT) and closing expenses.

If you are curious and want to know what to buy NXT, then we went ahead and bought one. (And yes, it’s a cat.)

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