Non-fungible tokens (or NFTs) are unique, non-interchangeable and non-fungible digital assets. They often represent rare items like art collectibles, though their use case now spans across gaming, music, real estate, albums and other physical or digital assets.
How do NFTs differ from fungible digital currencies like Bitcoin? In simple terms, two users can hold one Bitcoin each, but no two users can hold a particular NFT. This rarity alongside sentimental reasons, bragging rights and the owner-to-creator connection it fosters compels enthusiasts to splurge millions of dollars to acquire them.
The NFT Boom
This year has seen an unparalleled frenzy for NFTs. Sales of NFTs skyrocketed to $20 billion in the first quarter of the year, representing a 24,100% from the $93 million recorded in Q4 2020. Data aggregator NonFungible reported earlier this year that there were twice as many buyers than sellers. According to the company, the discrepancy in the number of buyers to sellers “is a signal of massive interest in newcomers, but also of the desire of current owners to keep their assets, which creates a phenomenon of scarcity in the market.”
While critics argue that NFTs are nothing but bubbles poised to pop, NFT aficionados have made it a habit to break the bank to acquire the most coveted digital collectibles. Here are four jaw dropping NFT purchases that made the rounds in the first half of the year.
Axie Infinity Gamers Spends $1.5 million to Purchase Virtual Real Estate
In what will continue to be one of the most talked about purchases in the NFT industry, two gamers completed a record purchase for the most expensive piece of virtual property in the metaverse in February 2021. A user by the moniker ‘Flying Falcon’ paid 888.25 ETH (worth $1.5 million at the time of purchase) for 9 genesis plots of land on NFT-based video game, Axie Infinity.
Beeple’s “Everydays: The First 5000 Days” Collage Sells for $69 Million at Christie’s Auction
Entrepreneur and cryptocurrency investor Vignesh Sundaresan otherwise known by the pseudonym, Metakovan doled out $69 million for Beeple’s “Everydays: The First 5000 Days” artwork at Christie’s auction in March 2021. The purchase became by far the biggest NFT sale in history and the third most pricey piece of art sold by a living artist. Designed by Mike Winkelmann aka Beeple, the art collage features 5000 pictures composed daily since May 2007.
‘Mars House’ Purchased for Over Half a Million Dollars
A Toronto-based NFT enthusiast paid $512,712 for a glass-themed house called ‘Mars House’ on NFT vendor SuperRare. He received 3D clips with which he can upload the house in the metaverse for any of his avatars. According to SuperRare, the property is the world’s first blockchain-based digital house.
Jack Dorsey’s Tokenized Tweet Sells for $2.9 Million
Twitter CEO and avid Bitcoin bull Jack Dorsey tokenized and auctioned off his first tweet ever. The long tussle between Tron founder Justin Sun and Sina Estavi of Bridge Oracle finally ended in a win for the latter. The proceeds of 1630 ETH (worth $2.9 million) were donated to charity.