Billionaire investor Mark Cuban has been at the forefront of the wave of interest in blockchain technology, smart contracts and NFTs or non-fungible tokens.
“Like the early days of all new technology, emotion sometimes creates unique situations,” Cuban tells CNBC Make It.
Recently, NFT-based art, in particular, has sold for hundreds of thousands of dollars, but according to Cuban, “as more entrants arrive at the [NFT] in the market, it will become more efficient and prices will be set, ”he says.
NFTs are unique cryptocurrency tokens that are used to represent assets, such as digital artwork, music, or movies. NFTs can be bought and sold, like physical assets, but because they work with blockchain, a decentralized digital book can be tracked that documents the transactions, ownership, and validity of the asset they represent.
One of their great advantages is that they allow creators to pay as their content is distributed on the internet.
For example, if an artist sells their NFT-based artwork, a buyer could purchase a unique testimonial that represents the good and then be able to demonstrate the authenticity and ownership of the digital art by using blockchain.
According to Cuban, this is where the value lies. “The technology is real,” he says. “The impact is real and permanent.”
Cuban predicts that NFTs will affect the art, music and film industries.
“[B]the blockchain and smart contracts and markets are here to stay, ”he says.
Recently, the “excitement” surrounding the NFT market has led to record auctions of artwork, for example, an NFT-based music video created by artist Mike Winkelmann, known as Beeple, was changed. last week for $ 6.6 million it was originally bought for about $ 67,000, while a crypto art version of the 2011 Nyan Cat meme was auctioned off and sold for about $ 590,000.
In the sports field, NBA Top Shot, an NFT platform that facilitates the buying and selling of short clips of popular players, has recorded sales of more than $ 280 million so far, according to the CryptoSlam website.
The music industry is also entering the market, with groups like the Kings of Leon announcing that it will release a new album as NFT for a $ 50 testimonial: the offer will be open for two weeks starting Friday at noon ET , and in the end, no more will be done.
As for Cuban, it has already charged with NFT auctioning digital products online, including a Mavs Suns Game Day Experience music video. He also owns NFT-based digital assets, including a “Maxi Kleber dunk Moment” card that he considers a collectible and as valuable as a physical sports card. Cuban said he would not sell, but other Maxi Kleber digital sets have been sold for $ 35 to $ 800 on the NBA Top Shot website, which Cuban describes as a massive innovation.
Disclosure: CNBC owns the exclusive off-network cable rights to Shark Tank.
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