NFT stands for “Non Fungible Tokens.” The word fungible sounds gross, but it’s not! You’ve probably heard this acronym and thought nothing more of it than a buzz word. But what started as an online community trend is quickly becoming a representation of digital assets for the next generation of sports fans, and investors.
So what exactly is an NFT?
Wikipedia defines the NFT as “a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable.” A tangible example of this latest monetary craze is NBA Top Shot. It’s an online marketplace that sells short highlights from some of your favorite stars (Think Damian Lillard’s game winner vs. the Rockets in 2014).
What separates these clips from YouTube videos is proprietary exclusivity.
According to Top Shot’s website, “Each Limited Edition collectible is marked at creation wit ha unique serial number, with guaranteed scarcity and protected ownership guaranteed by the block chain.” Put simply; these miniature highlights are a limited assets on the NBA Top Shot market place.
Each highlight’s value is determined by its supply and demand on the Top Shot marketplace. It might seem strange to value a highlight that can be easily found on YouTube and Twitter. But NFT’s are don’t fit into a commodity mindset. There are assets that will grow in value over time, if the marketplace deems it to grow.
If you’re still confused (which you might be) about NFT’s, check out our interview with Bleacher Report’s Sean Highkin, as he goes in depth.
