The investment collective PleasrDAO, the Swiss bank Sygnum and the popular blockchain game Axie Infinity have nothing more in common than NFTs, one of the most innovative solutions developed with blockchain.
NFTs have gained great prominence since mid-2020, when their enormous potential was just beginning to become popular. Due to their qualities, the non-fungible tokens or NFT, as they are known by their acronym in English, are called the best innovation in technology blockchain. These tokens have earned a special place in the development of the crypto industry for being a solution created to allow us to represent digital objects with unique, unrepeatable and indivisible qualities within the blockchain.
Now that their potential is just beginning to be discovered, several companies and organizations are exploring different use cases for these tokens.
PleasrDAO, an investment collective that has spent millions acquiring artworks in NFT format, is using its assets as collateral for loan applications. sygnals, the first commercial digital asset bank based in Switzerland, is offering fractional ownership shares in works of art using NFTs. On the other hand, Axie Infinity It is becoming the most popular blockchain game and protocol in the industry due to its potential to create value through objects and items in NFT format, which are exchanged and traded within the same game or in secondary markets.
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New use cases for NFTs
As mentioned PleasrDAO is using its NFTs as collateral on loans. Via Twitter, the investment collective reported that it had executed the first DAO-to-DAO loan using Iron Bank, a product of the protocol. DeFi cream finance.
The loan was executed for a value of $3,5 million and is backed by a basket of 4 PleasrDAO NFTs. This movement marks a milestone in the history of NFTs, the group explains, as it highlights the value of these tokens to access financial products where other cryptocurrencies, goods or fiat money are generally used as collateral. It is important to highlight that in March, the protocol VeryNifty launched a new functionality to allow its users to access flash loans using NFTs.
On the other hand, the utility that the Swiss bank Sygnum is giving to these tokens allows investors to acquire shares in works or objects of high value. Specifically, Sygnum will release 4 NFTs that represent fractional shares in a Picasso artwork, although these will not give rights to sell the physical work, valued at more than $3 million.
The NFTs that represent part of the ownership of the work “Fillette au béret” They will be offered with a value of 6.000 dollars, said the bank. Sygnum's idea with its NFTs is to expand the exposure of its investors to high-value works of art, breaking the mold of an industry reserved for large elites and museums and allowing a greater number of investors to enter the attraction. art world.
Crypto collectibles on blockchain
In the case of Axie Infinity, this blockchain game is proving that NFTs have the potential to create real value for everyone equally. Axie is a decentralized game that works under the Pay to Earn model, where players can fight epic creatures, raise pets, farm or build on digital land, trade items and more, to earn token rewards that are exchangeable for fiat money.
Digital land and objects, which are created as NFTs, can be traded within the platform or on secondary markets. To give us an idea of the value that exists in Axie Infinity, in February, a user sold an estate made up of 9 parcels of digital land for $1,5 million. Recently, Kieran Warwick, co-founder of the Illuvium metaverse, sold a plot of digital land on Axie for $28.000. Likewise, Axie creatures have an average value of $250.
Axie Infinity co-founder Jeffrey Jiho Zirlin commented on Twitter that this week the blockchain game generated more than $30 million in profits, surpassing those generated by almost all the main protocols in the DeFi ecosystem.
Evolution and development
Contrary to popular belief, it was not Ethereum the chain that gave life to NFTs, but Bitcoin, the most important network and cryptocurrency in the industry by capitalization. In this blockchain, NFTs were born from the idea of the founder of eToro, Yoni Assia, with the well-known colored coins, a type of token designed to represent other assets, tokens or objects in a unique and unrepeatable way. The development of colored coins led to the creation of the first NFT in history, the Rare Pepe.
Artworks
Since then, the NFT innovation began to become popular in different sectors; especially, in the art world. The potential of NFTs to represent objects from the real or digital world along with their own characteristics, and to guarantee the ownership of authors and content creators, led dozens of artists to adopt this innovation to represent or design new works on blockchain.
Beeple's He is one of the artists who has attracted the most attention with his crypto art. In March, Beeple sold his artwork “Everydays: the First 5000 Days” for almost 70 million dollars. Other artists like Pak, Fewocious, Jose Delbo, Bosslogic and many others have also had great success with their digital artworks, selling several million dollars.
Music, film production and High Fashion
Musicians, influencers, models, and celebrities have also embraced non-fungible tokens to offer value to their fans and followers. Even restaurant chains, film companies, and high fashion and design firms are entering the world of non-fungible tokens to present their creations in an exclusive and genuine way.
For example, the famous DJ 3LAU auctioned his Ultraviolet Vinyl Collection for more than $11 million in March, and Grimes, a Canadian singer and songwriter, sold her NFT collection for $6 million in the same month. Paris Hilton y Katy Perry They are two well-known celebrities who are also exploring the potential of NFTs.
The restaurant chain Taco Bell launched a collection of non-fungible tokens themed after its famous tacos. The producers FOX y Warner Bros They recently announced new film productions that will be released alongside limited edition NFT collections. The fall of haute couture fashion Dolce & Gabbana also announced its debut in the exclusive world of NFTs to present its new collection. Nike is another of the multinational design companies that are using NFTs to create original, unique and unrepeatable footwear.
In addition to all these industries, NFTs have also broken into sports, an industry where they have had exceptional growth.
Future of NFTs
Due to the level of acceptance and popularity that non-fungible tokens have gained, and their adoption by world-renowned companies, specialists point out that this digital ecosystem will continue to grow in the future. The tokenization of assets on blockchain is booming; Furthermore, we must not forget that these assets have the ability to generate security, trust and traceability for investors, collectors, traders and other market participants.
On the other hand, due to their impressive boom, which has conquered the Internet in a short time and shows no signs of slowing down, many regulators began to turn their gaze towards these tokens, indicating that they are used as speculation assets, and even for money laundering. However, to date, there are no clear rules regulating these digital assets.
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