PPB May 2021

by Danielle Renda TECH TALK NFTs Unleash New Potential For Creators, Brands One-of-a-kind digital assets hold value in cryptocurrency, and with some of these works selling for million-dollar profits, there's immense untapped potential for brands. The term “non-fungible tokens” (NFTs) has gleaned headlines as of late, with seemingly every well-known brand, from Taco Bell to Pringles to Charmin, and even musicians, artists and other creators, getting involved in some form, and doing so rather quickly. In mid-March, Pizza Hut sold its first-ever NFT, a digital, pixelated rendering of a pizza that’s part of a limited collection of its “1 Byte Favorites” on Rarible—a platform allowing artists to sell digital works via blockchain—for $0.0001 ETH (Ethereum, a cryptocurrency), equivalent to $8,824 USD. At press time, the highest-selling NFT to date was sold by Christie’s at auction for a whopping $69 million. The work, titled The First 5,000 Days , is a collection of digital art created by artist Mike Winklemann, known as Beeple, over the course of 5,000 days, or nearly 14 years, which he originally started as a way to refine his art skills. On a lesser scale albeit still in the six-figure range, artist Christopher Torres grossed $600,000 from the sale of his digital animation, the “Nyan cat” meme, which portrays a flying cat with a Pop Tart for a body. According to CNBC, at press time the NFT market was valued at more than $400 million. So, what exactly is an NFT? NFTs, which exist strictly in the digital space, appear complex at first, but it boils down to a simple understanding: much like we purchase commodities with currency in the real world or through ecommerce, such as cars, clothes or collectibles, NFTs are assets that hold monetary value in the cryptocurrency world, and they can be sold on a blockchain, which is a digital database that supports cryptocurrencies such as bitcoin and Ethereum. Essentially, the process can be summed up as a virtual marketplace involved in the buying and selling of digital work. The most important part of NFTs are not in the assets themselves, but in the information these assets store, which may permit purchasers to access exclusive content and tap into unique experiences. And because of this, it holds a wide range of opportunity and potential for brands. Certainly, with the creation of digital art comes the concern that it can be replicated or lost. NFTs, first and foremost, are unique in that they cannot be duplicated. An NFT essentially stands as a certificate of authenticity for an exclusive digital work. Just like with tangible art, such as paintings or sculptures, purchasing the This piece of digital art, The First 5,000 Days , is the highest-selling NFT to date--it sold for $69 million. mundissima / Vladimir Kazakov / Shutterstock.com | MAY 2021 | 67 THINK