What are NFTs?
NFTs (Non-Fungible Tokens) are a type of cryptocurrency asset that is unique and non-interchangeable. They are used to represent a variety of digital assets such as artwork, music, videos, and other digital assets. Unlike other cryptocurrencies, NFTs are not divisible – they can’t be split into smaller portions or exchanged for other tokens. This makes them particularly secure, as they are not vulnerable to the same kind of manipulation and fraud that can sometimes occur with other cryptocurrencies.
What Happened to NFTs?
In recent years, the popularity of NFTs has grown significantly as more people become aware of their potential. The technology has been used to tokenize a variety of digital assets including artwork, music, videos, and even digital collectibles. In 2021, the NFT market exploded in popularity, with the total market capitalization reaching an all-time high of over $2 billion. This surge in popularity has led to many people investing in and trading NFTs, and the market has become incredibly competitive with many people looking to make money from buying and selling NFTs.