Billionaire investor Mike Novogratz seems to be very bullish on the non-fungible token (NFT) sector.
Former hedge fund manager Novogratz is the Founder and CEO of Galaxy Digital, “a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.”
Here is how Binance Academy explains what NFTs are:
“A non-fungible token (NFT) is a type of cryptographic token that represents a unique asset. NFTs are tokenized versions of digital or real-world assets. They function as verifiable proofs of authenticity and ownership within a blockchain network. NFTs are not interchangeable with each other and introduce scarcity to the digital world.
“Fungibility refers to the property of an asset whose individual units are interchangeable and essentially indistinguishable from each other. For example, all fiat currencies are fungible. To act as a medium of exchange, each individual unit must be interchangeable with any other equivalent individual unit. A one-dollar bill is interchangeable with any other genuine one-dollar bill.
“NFTs can be used by decentralized applications (DApps) to allow for the creation and ownership of unique digital items and collectibles. While NFTs can be traded in open marketplaces that connect buyers with sellers, it is worth noting that the value of each is unique.
“Various frameworks have been created to facilitate the issuance of NFTs. The most prominent of these is ERC-721, which is a standard for the issuance and trading of non-fungible assets on the Ethereum blockchain. A more recent, improved standard is ERC-1155, which enables a single contract to contain both fungible and non-fungible tokens.
“The standardization of NFTs allows a higher degree of interoperability, meaning that unique assets can be transferred between applications with relative ease.
“NFTs have the potential to be one of the key components of a new blockchain-powered digital economy. They could be used in many different fields, such as video games, digital identity, licensing, certificates, or fine art – and even allow fractional ownership of items. Storing ownership and identification data on the blockchain would increase data integrity and privacy, while easy, trustless transfers and management of these assets could reduce friction in trade and the global economy.“
Anyway, on Wednesday (February 2), Novogrtaz, who said last May that around 85% of his net worth is in crypto and who had in the past mostly expressed bullish sentiment for Bitcoin and Ethereum, had this to say about NFTs:
And given how over the past few months retail interest in NFTs has surpassed everything else happening in the crypto space — which is perhaps not surprising given how many celebrities are talking everywhere about either the latest NFT they have bought or created — and the fact that NFTs seem a perfect gateway drug to crypto, what he says makes sense.
In fact, just last week, In an appearance on Jimmy Fallon’s “The Tonight Show“, American celebrity Paris Hilton, talked about her most recent experience with NFTs.
Hilton and Fallon started by talking about their common interest in the Bored Ape Yacht Club (BAYC) NFT collection, which they have both invested in.
Hilton then mentioned that she would be launching her first NFT collection with the help of Superplastic (“a global entertainment brand” famous for its “limited-edition designer toys and apparel” based on celebrities) and Origin Protocol (which wants to “bring blockchain-enabled commerce and finance to the masses”).
She also talked about a new NFT called “My Forever Fairytale” (a collage based on memories with her husband Carter Reum) that had taken her six months to design.
After Fallon told her that he thinks “people are gonna love this”, Hilton replied:
“You love it so much I actually want to give you the first one. And I want to give one to everyone in the audience.“
Fallon then added:
“Everyone gets an NFT tonight. I think that’s the first NFT giveaway in television history.“
The Block reported on January 29 that according to The Block Data Dashboard, monthly trading volume in NFTs in January was over six billion dollars.
The report went on to say:
“Monthly NFT volume grew 129% in January relative to December. Much of the increase was due to the latest contender in the NFT marketplace scene, called LookRare, which accumulated nearly $2 billion in volume after its launch on January 10.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.