NFT’s, which stands for “non-fungible tokens”, are cryptographic digital assets that exist on a blockchain with unique identification codes and metadata that distinguish each from all others.
Unlike cryptocurrencies, (currencies.com estimates there are over 9,000 different crypto’s currently) that are identical and, therefore, can serve as a medium for transactions, NFTs are unique and intended to represent some real-world asset like a work of art, music, photos, etc.
NFTs have been made to represent things as widely varied as NBA “Top Shot” photos and Twitter founder Jack Dorsey’s very first tweet ever, in which he wrote: “just setting up my twttr.” At one time in the not too distant past, NFTs were touted as being “the next big thing”.
Recently, however, trading in NFTs has absolutely plummeted—now down 97% from the peak in January of this year. The fading NFT mania is part of a wider, $2 trillion wipeout in the crypto sector overall as rapidly tightening monetary policy starves speculative assets of investment flows. (Chart from Bloomberg.com)
