Non-Fungible Tokens (NFTs) have evolved rapidly and in a significant way since their first associations with digital art a decade ago, but what do they offer investors today?
Various opportunities exist across a range of sectors for investors who are looking for them, with NFTs a versatile and alternative offer to many other digital assets. Here are some key areas to consider.
Real Estate: Tokenized Property Ownership
Real-world real estate ownership can be a lucrative enough pursuit in its own right, but the entry of NFTs into the space has added a layer of investment potential. Fractional ownership through tokenization, increasing liquidity in a traditionally illiquid market and the ability to diversify a real estate portfolio without large capital outlays are all appealing elements.
Intellectual Property: Creating Value
Artists, musicians, creators and other types of producers can mint their work as NFTs, enabling investors to purchase a stake in their output. Smart contracts can allow for automatic royalty payments to create ongoing revenue streams, enabling investors to support and benefit from successes.
Collectibles and Memorabilia: Transforming Fandom
Digital collectibles, from trading cards to virtual fashion items, have seen huge success with major brands stepping into the space and tokenzing moments and experiences as collectible NFTs.
While NFTs present exciting opportunities, they should also be treated with the same caution applied to all digital assets due to their volatility.
The descriptions provided above are all based on publicly available information, and as such cannot be considered as financial advice or encouragement to invest. Sources of information used in this post include Investopedia and Forbes. All transactions involving digital assets involve certain risks, which you should familiarize yourself with prior to any investment.