Pros of NFT

• They could unlock new revenue streams in gaming, sports, the arts, and technology.
• NFTs could introduce millions of people to cryptocurrencies for the very first time.
• They can transform our attitudes toward ownership — and make it possible to own a real-world asset that’s thousands of miles away.

Cons of NFT

• Building decentralized apps for non‑fungible tokens can be tricky and time consuming.
• Much more simplification is needed so NFTs are easy to use for people who know nothing about blockchain.
• NFT games can have a ”hot potato” effect. Players buy an asset in the hope of selling it on for a profit, but if the market collapses, they can make a nasty loss.

NFT Stats

• All these stats making promises of astronomical growth don’t tell the full story, though. The NFT space does have its challenges.
• According to Nonfungible.com’s annual report, most projects have a poor retention rate — and in 2019, the vast majority were used for three months or less. As of February 2020, just 3.5% of these platforms were used for more than 10 months.
• The liquidity of NFTs is also a crucial measure of how healthy a marketplace is, but in 2019, just 12% of newly created assets actually circulated between users.

Big NFT News in 2020 (so far)

• Back in March 2020, Tyler and Cameron Winklevoss revamped Nifty, a centralized exchange that allows people to sell their tokens and withdraw their profits in fiat.
• Companies are using NFTs to help consumers establish ownership and control over their DNA data, and others are planning to launch peer-to-peer marketplaces for NFT mortgages and rentals.
• NFTs are even being created for journalistic content in a bid to tackle fake news.

What’s Next?

• A straightforward user interface will be crucial for unlocking mainstream adoption.
• As endless experimentation takes place, we’ll likely see several NFT projects crash and burn. Some will struggle to maintain the excitement and momentum they have immediately after launching.
• As such, if you’re tempted to snap up a pricy token worth a few hundred bucks, make sure you’re not left holding a hot potato.

Full artcile: https://cointelegraph.com/magazine/nonfungible-tokens/

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1. SuperRare.co – A Blockchain Platform for Artworks Trading

2. Artist Whose NFT Broke Auction Records ‘Dismissed’ NFTs Initially

3. Crypto Artists and Investors Trusts NFTs to Transform the Art Industry

Related Notes

SuperRare.co – A Blockchain Platform for Artworks Trading

Aug 05, 2020 – Martin Young, CoinTelegraph

Digital Art Trading Platform ‘SuperRare’ Sees Volume Increase 365%

• The digital art scene is becoming a hotbed of activity for non-fungible tokens*.
• Digital art marketplace ‘SuperRare’ has surpassed $1.6 million in cumulative trade volume as buyers become more comfortable with the concept of art sold as non-fungible tokens.
• The marketplace started the year with $344,000 in platform sales volume, but has seen that figure almost quadruple in seven months.
• Artists are able to digitally sign their work on the platform by creating a tokenized certificate before entering it into an online auction. Collectors can then purchase and resell works in secondary markets.
• The marketplace itself recently claimed that over 8,000 works had been sold on the platform, earning artists over $1.3 million and collectors over $430,000.

* A non-fungible token (NFT) is a specific type of digital asset where each token has a unique identifier.

Artist Whose NFT Broke Auction Records ‘Dismissed’ NFTs Initially

Aug 06, 2020 – Samuel Haig, CoinTelegraph

Trevor Jones, the artist who composed Picasso’s Bull — an NFT that sold for a record $55,555 on NIfty — originally thought that NFTs were destined to fail.

The art colleges and artists, commercial galleries and auction houses that don’t adapt to the new ways of creating, selling, investing in and displaying art will eventually become obsolete.
I see NFTs as a huge part of my future and the future of art and the art market in general. As the space grows and more sales like Picasso’s Bull occur the traditional art market will eventually catch on to the digital art market revolution.

Crypto Artists and Investors Trusts NFTs to Transform the Art Industry

Nifty Gateway, a leading marketplace for nonfungible tokens with the backing of the Winklevoss brothers, recorded its largest-valued auction to-date on July 23 when the digital artwork and NFT “Picasso’s Bull” sold for $55,555.55.

The milestone comes as benefits of

• fractionalized ownership,
• decentralized provenance verification, and
• the global liquidity pool enabled by blockchain technology

are enticing both art creators and investors to explore NFTs.

“Fractionalizing (offering “shares” in an artwork) is now possible, and I’ll soon be offering fractional ownership of my physical paintings through NFTs.” ~ Trevor Jones

Animated Digital Artwork video here:

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