Tech experts predict NFTs will become part of daily life

Kristin Hall
Source: 1News

A Kiwi company that’s on track to make $1 billion in a year selling NFTs is predicting the technology will soon become part of our daily lives.

NFT stands for non-fungible token. They’re digital assets that represents real-world objects like art, music and videos. They're bought and sold online and have a unique digital code.

Major international companies like Nike, the NBA and Coca-Cola are all starting to dabble in NFTs.

“It's a new form of collectables,” University of Auckland associate professor Alex Sims says.

“It's a bit like in the old days when people had baseball cards and things, you will pay a lot more for one because there may only be one of them there.

“Increasingly people can actually show that they own it … even though, yes, someone could make a copy, they don't actually own it.”

It's big business - to date the most expensive NFT sold was a collection of 5000 digital images by artist Beeple which went for USD$69 million (NZD$101.59 million) at London auction house Christies.

Kiwi company VeVe is in on the action as well. The NFT app which allows users to buy, sell and trade NFTs online launched in early 2021.

“We'll be generating over a billion revenue in the calendar year coming,” co-founder David Yu says.

“Every consumer spends around $60 USD (NZD$88.35) in our drop release. Everything sells out in less than a second for the last 50 to 60 releases so we're pretty thrilled with that.”

Co-founder Daniel Crothers says the app gains 20,000-30,000 new users a day.

“It's been crazy to be honest. We've sold 2.8 million editions since January and grown to 1.3 million active users.”

The companies partnered with brands like Disney and Marvel to create NFTs of popular characters, selling to loyal customers like Aucklander Ben Carter who estimates his NFT collection is worth about USD$40,000 (NZD$58,900).

“I guess the difference between physical collectables and digital collectables - the main difference really is the future,” Carter says.

“My digital collectables, they're in my phone and I can take them out I can show people … whereas a physical collectable, people have got to come to my home to see them.”

Crothers says there’s “no real true get rich quick schemes” when it comes to buying NFTs.

“NFTs are like anything else. If you want to invest your money in something and you want a return you have to research it, you have to know what you're buying and making sure it is something that has growth and sustainability.”