In 2021, it was hard to look at the news or even to open up social media without seeing something new about NFTs. The tokens, and all the good and bad that comes with them, were a hot topic in the waning months of last year, with some real headline-grabbing developments helping the market explode to more than $23 billion (₦9.5 trillion) by the end of 2021.
For those who aren’t familiar with NFTs, they stand for Non-Fungible Tokens and represent the ownership of a specific copy of a digital asset stored on a specific server. Many people confuse them with ownership of all copies of the asset, which can come in many forms such as JPEGs or even video clips, or think that they are stored in the asset themselves. Instead, the token itself is more like a receipt for a specific copy.
Part of the reason that NFTs have made such big waves in the past several months is the huge amount that many of them have sold for. One NFT, titled simply Cryptopunk #7804 and representing ownership of a JPEG of an alien in a cap and shades and smoking a pipe, sold for an incredible $7.57 million (₦3.1 billion) back in March 2021.
However, not all NFTS are beyond the reach of normal people; in fact, they’re often used to give people a slice of something they could not usually have. An example of this is the rise in fan tokens, a form of digital influence over sports teams that can be bought and sold.
A fan token is an NFT selling for a small amount which gives fans votes over certain topics at the biggest football clubs in the world, from Barcelona to AC Milan. Usually, supporters wouldn’t have that link, but for the price of a beverage in a café, they can own digital influence in the form of the Chiliz-backed NFT. That’s not the only achievable form of NFT on the market; several gaming companies are rolling the technology out for players to own specific costumes and skins in their favourite games.
While these might be the kind of NFTs that many of us could afford, they aren’t the kind that made the biggest waves in the market. For such a simple concept, there have been some examples of NFTs going for truly outrageous amounts.
The Most Expensive NFTs In 2021.
NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated. Here are three of the most expensive NFTs purchases from the past year:
1. Everydays: The First 5000 Days.
Mike “Beeple” Winklemann created a collage of everyday images that date back to 2007 and made history when it became the most expensive NFT ever to be sold. Selling for a staggering $69.3 million (₦28.6 billion) back in March 2021, it is credited with sparking the growing interest in the technology as a tool for artists.
2. Human One.
Another from Beeple in November 2021, Human One was unique among NFTs in that it was both a physical and digital artwork. The four video screens sat on a polished aluminium and mahogany frame. Selling for $28.9 million (₦11.9 billion) from famed art auction house Christie’s, this second sale cemented Winklemann’s place as one of the most valuable artists living today.
3. Cryptopunk #7523.
This randomly generated JPEG was created as part of Ethereum’s blockchain and attached to an NFT back in 2017. This alien wore a mask and surgeon’s cap, earning it the nickname “Covid Alien.” It was sold for $11.75 million (₦4.86 billion) more than four years after it was originally created. This is especially overwhelming when you consider it was originally given for free as a bonus to those who opened an Ethereum wallet.
While we might not all be able to afford to spend this kind of money on NFTs, but there are habits that we can borrow from millionaires to help us get the most out of life.
