The biggest and most popular service is OpenSea. Things like art pieces, game items, real estate, etc., can be minted as an NFT.Īs the demand for tokens grew, there were developed NFT marketplaces as independent platforms for buying and selling digital items. Again, an NFT is a non-fungible unit.Īn NFT is a certificate that guarantees ownership over an asset to its owner. For instance, one Bitcoin is one unit that can be distributed among other market participants a dollar can be divided into 100 cents, etc. These tokens are unique one token can’t be exchanged for another or split into parts. The main features of non-fungible tokens are uniqueness, own price, and value.

Knowing why non-fungible tokens are so expensive, their use, and why investors like them are crucial. Hence, it is beneficial to understand the main technology development trends for 2023. The market value is approximately 40 billion dollars, and NFTs' popularity is growing.

Indeed, people pay a lot of money for digital products (images, songs, real estate, etc.). In 2021, many news outlets published articles on NFT paintings sold for thousands or millions of dollars. Fractional, Niftex, and other platforms help people buy and sell F-NFT like investors trade assets, and collectors sell stamps or eBay cards.Īnyway, if a company creates NFTs to raise funds and produce products and services, they must get consulting from securities experts to see whether they adhere to the laws and regulations. This product allows investing in an NFT share and helps buy several NFT shares. If the brand tells the clients that they can resell the tokens and make money, the company would hardly avoid registering the token as a security.įractional NFT (F-NFT) is also popular. Furthermore, they will spend the money received on creating new trainers closer to securities than collectible items. The company notifies the clients that each NFT will gain value with time since there are only 100 tokens.

For instance, Nike creates a limited collection of 100 NFTs. An NFT will be under the SEC control sphere if the creator mints a token as an investment that requires initial assessment. SEC frequently verifies the correspondence to the ‘’investment contract’’ notion so that to define whether an investment suits the securities definition.Ĭonsidering NFTs, if an asset is a painting or other art, it can be viewed as a collectible, not security. The Security and Exchange Commission (SEC) works on regulation and requires the registration of these assets before allowing public sales.

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