NFTs Explained

Welcome to the Amazing Appraising Blog where we cover everything collectible. From our world-renowned expert Lee, you will almost certainly learn some very unusual things. Today we continue our conversation on Cryptocurrency. In summary, Crypto relies on a unique series of numbers, containing anywhere from 20 to 50 digits that reflect a specific item. Said item could be a Bitcoin but it could also be a piece of art, a watch, or jewelry. Otherwise known as an NFT. An NFT could be a cartoon character, there is a very famous group of items called The Bored Apes Club, some of which sold for millions. Images that belong to a club of this kind and once your own become a face for an online identity, used for further buying and selling. 

These digital images represent a significant investment as their market value steadily increases. They also function as a status symbol, a means to advertise your purchase in a club such as The Bored Apes Club. Pretty, pretty cool. This is a whole new arena and the Law is still catching up. There is a famous lawsuit involving the proud owner of an NFT from a rare collection. The creator and owner that minted the collection, capitalized on his first success by releasing a cut-rate second edition. Originally sold for 2 million each, the reissued NFTs were auctioned off, en masse, for $500 apiece. One of the original investors sued the artist as a result. I am a lifelong insider of the real world of collectibles. 

I am often confronted with similar quandaries. The estate of Picasso for instance might run a lithography printing from an original Picasso plate; 500, 20 years later they are considering a second printing. In theory, they can run the print unless they promised the original buyers they were purchasing within a limited production involving the destruction of the plate. If they didn't make the promise, it's permissible; if they did, it's illegal. An NFT contact is the same. One might assume that yours would be the only edition but there is a big difference between assumption and legal obligation. If it was only an assumption then the legal advantage goes to the seller. We've spent a lot of time studying the NFT market. It's very interesting to us especially as we are expert appraisers that handle the rare, vintage, and one-of-a-kind daily. We’re bona fide experts. Who better than us to be the purveyor of an NFT? 

We have some very interesting ideas along this vein so be sure to tune in next time for the rest of our discussion. Jack Dorsey, the founder of Twitter, sold his original tweet for $20 million. A year later the same NFT couldn't even reach 20k at auction. It's an interesting and risky little market. We plan to, as they say, get in and get out at the right time!