In August, the release of Non fungible tokens was announced by Rammstein frontman Till Lindemann and footballer Lionel Messi. Why is there another surge in the popularity of NFT and is it worth buying tokens of famous people?
Amid the recovery in the crypto market, there is a surge in the popularity of non-fungible tokens (NFT). In early August, trading volumes on the OpenSea NFT marketplace exceeded $ 828.6 million, although in July this figure was only $ 284.2 million, and in June – $ 125.2 million.
NFT tokens are unique and not divisible. Such tokens are used to confirm ownership of an object; they cannot be replaced without the consent of the owner.
In the first half of 2021, sales of non-fungible tokens reached a record $ 2.5 billion. In 2020, NFT sales were $ 95 million – 26 times less.
On August 11, the lead singer of the Rammstein group Till Lindemann put up for sale his own non-fungible tokens, which are tied to animated illustrations, on the NFT Frame platform.
There are five types of NFT available for purchase. The most expensive of them costs 100 thousand euros. Its buyer will receive not only the token itself, but also the opportunity to meet with Lindemann in Moscow.
In early August, Lionel Messi announced the release of his own collection of NFT tokens, The Messiverse, drawn by the artist Bosslogic.
Tokens will be presented on August 20 on the Ethernity Chain platform. Since August 4, the platform’s token has risen in price by 90%.
Another boom in NFT
The NFT market is growing rapidly, users are actively buying and testing the technology of non-fungible tokens, says Vladimir Smetanin, CEO of cryptanalytical company Newcent.
This is the second NFT boom this year, he said. According to the Smetanin, the market will continue to grow.
“This market is special, it is akin to the market of art and collecting – it is difficult to rationally approach it, personal attachment to a specific author or person is very great,” Smetanin noted.
Is it worth investing in NFT
The NFT sphere is experiencing tremendous growth, which is helping the crypto market recover, says Andrey Podolyan, CEO of the Cryptorg crypto exchange.
In Podolyan opinion, in the future, own tokens will become a common practice for famous personalities. Popular sports teams will also come to this.
At the same time, Podolyan notes that it is necessary to invest in NFT tokens carefully, in compliance with money management, since any “hype” sooner or later leads to overheating of the market, followed by a correction.
Humanoid robot Sophia , singer The Weeknd , American football player Tom Brady , Mumiy Troll group, Russian mixed martial arts fighter Khabib Nurmagomedov , director Kevin Smith , legendary football player Pele , boxer Floyd Mayweather and many others have already issued their own non-fungible tokens .
It makes sense to invest in NFT tokens only if there is a deep understanding of the value of a digital asset from a specific person or organization, Smetanin noted.
According to Smetanin , it is necessary to buy NFT tokens only when there is confidence in the further growth of its popularity.
