Valuable works of art have traditionally brought high prices, but the world of NFTs is giving this market a whole new avenue for jaw-dropping sales of assets that can be stored digitally. There are many advantages to buying NFTs and also some potential pitfalls. Investors should be wary but not overlook this developing profit opportunity.
The proliferation of digital currencies over the last few years has led to a rapidly growing list of use cases for tokenised assets. Thanks in no small part to the development of blockchain technology, as well as the recognition and anticipation of what cryptocurrencies
During 2017, a few fortunate investors have made a lot of money very quickly on their investment in crypto-currencies, an asset class that did not exist just eight short years ago. But as with other rapidly evolving assets, that often seem too good to be true, the potential soaring profits of crypto-currencies are offset by the risks of crushing losses. “Investor beware” is the name of the crypto game!
On 12 June 2017, a blockchain-based company called Bancor raised approximately $153 million in ether (the coin of the cryptocurrency Ethereum) in just less than three hours by way of an initial coin offering (ICO).
“The creatures looked outside from pig to man, and from man to pig, and from pig to man again, but already it was impossible to say which was which.” So ends George Orwell’s Animal Farm – a novel all about the danger of becoming that which you set out to oppose.