WhaleFin recently launched its NFT feature for all WhaleFin users to store and manage their NFTs. But, what are NFTs?
An NFT (non-fungible token) is a non-replicable and indivisible on-chain token. In its essence, it is a token with a unique identifier that can be traded or exchanged like any other crypto asset. The key difference between an NFT and other homogenized tokens, that are all equal to each other, is that each NFT features unique content. This content, for example a piece of artwork, is embedded into the token through a pointer stored within its information.
What info are stored on NFTs?
An NFT stores two key pieces of information. One is the proof of ownership of the token, and the other one is the information about where the content associated with the token is stored.
The ownership of an NFT is shown as a public chain wallet address, where ownership corresponds to the ability to manage the token and transfer it to another wallet. Most NFTs exist on top of the Ethereum blockchain and the content associated with them is stored in servers such as IPFS (a distributed storage system) or centralized servers, such as AWS or Alibaba Cloud. Within the NFTs information, there is a pointer that directs you to the content’s storage site. The content stored within an NFT is variable: typically, any digital content can be made into an NFT.
Trends related to investment in NFTs have shown that this novel asset class is mostly treated as a type of art and luxury asset. At present, the art auctions market is around USD$50 billion and the market for luxury goods is about USD$318.7 billion. According to NFTgo statistics, the current market capitalization of NFTs sits at around USD$22 billion. Taking into consideration the size of the art and luxury goods markets, we can infer that the NFT market still has huge growth potential.
How are NFTs valued?
NFTs are a development in technology in respect of art. The “Mona Lisa” is a timeless masterpiece because it is representative of unprecedented artistic technique of the Renaissance. Artistic technique is one of the determinants of artistic value.
Today, we are living in an era in which a new set of technologies, which include software and artificial intelligence, are enabling the creation of new types of artworks. An example of this is the artwork produced by the well-known artist Beeple, who uses digital tools to create rather unique pieces of art. It is exactly because Beeple adopts a unique artistic method, which is representative of a new era of art and one that offers new historical significance, that his artwork is highly valued, among other contingent reasons.
In addition to the aforementioned artistic component of valuing an NFT, its social value is of great relevance. Nowadays, people pay a growing amount of attention to what and how they identify themselves.
NFTs have become a symbol of the holder’s identity.
WhaleFin recently launched its first-ever NFT Airdrop together with the web3 enabling company Openverse. Join until 19 July to secure a chance to win an Openverse NFT.
About Amber Group & WhaleFin
Amber Group is a leading digital asset platform operating globally with a presence in Asia, Europe, and the Americas. We provide a full range of digital asset services spanning investing, financing, trading, and spending. We are backed by some of the best investors across the world such as Sequoia Capital and Tiger Global Management. In 2021, Amber Group raised $100 million in Series B funding and became the latest FinTech unicorn valued at over $1 billion.
WhaleFin, powered by Amber Group, is a culmination of its years of experience serving both the institutional and retail markets, an all-in-one digital asset platform, designed to empower you to diversify, manage and grow your wealth digitally in a secure manner.
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