We recently released the first promotional video for NFT Concerts and immediately got hit with several negative comments. Many of these comments encouraged viewers to avoid NFTs, and some even referred to NFTs as a total scam. So, in this article, we are going to look at the question, “Are NFTs a Scam?”
As the NFT gold rush continues, many individuals are jumping into the NFT space with minimal understanding of the underlying technology. An increasing number of “investors” and entrepreneurs are looking to get rich quick in the NFT space, creating a potentially toxic market.
In order to understand if NFTs are a scam, we first need to answer the question, “what is a NFT?” A non-fungible token (NFT) is an individual token existing on a blockchain. A NFT is unique from other crypto coins in that one token cannot be exchanged for another. To understand fungible tokens, consider bitcoin. Bitcoin is a fungible token and as such can be compared to a dollar bill. One dollar bill can be exchanged for another, no problem. Just like dollar bills, one bitcoin can be exchanged for another bitcoin, no problem.
NFTs are better represented by paintings. You can’t simply swap one painting for another and expect an equal transaction. Every painting is unique, and every painting has its own value. A non-fungible token is a unique token, in that can’t be swapped for another.
The current NFT standard is to issue a non-fungible token to a public image or short video clip, offering ownership over that clip. Through the blockchain, this token can be authenticated as having been issued by the creator and has a provable public transaction record to verify the current owner of the token.
By using NFTs, popular internet gifs and memes are now getting monetized. Headlines are made by the gif of NyanCat selling for over $600,000, or Disaster Girl meme selling for over half a million dollars. These high value transactions for novelty images show that there is real hype surrounding the NFT space, but at the same time, they make traditional investors wary.
While even I will admit that there are individual NFTs, and even whole NFT projects that are scams or scammy in nature, the underlying technology is legitimate. Personally, I believe that the future of NFTs lies in building additional use cases with this technology.
Here at NFT Concerts, we are using NFTs as a key to unlock encrypted content, specifically full length audio and video concert recordings. Only the owners of the NFT Concert will be able to unlock and stream the show. While ownership over public content is great, our NFT solution offers ownership over private content, offering real value for fans and content protection for artists.
NFT technology is certainly not a scam. While consumers should be careful with their money and research the NFTs they choose prior to purchase, there is real potential for a variety of use cases involving NFTs. In the end, educated consumers will determine what NFT projects have value both in the short term and the long term. The underlying technology of NFTs is sound, and NFTs will be a here for the foreseeable future.
If you would like to learn more about NFT Concerts, check out our homepage. We are currently lining up artists for our initial launch. If you are a musician or content owner, please fill out our Artist Application for more information. If you are a music fan interested in owning exclusive access to previously unreleased concert recordings, be sure to subscribe to our mailing list below.