By Radhika Agrawal
February 20, 2023
UPDATED 12:00 PM EST
[Photo credit: Forbes Advisor India]
What are NFT’s?
NFT’s are non-fungible tokens, which are generally created using the same type of programming used for cryptocurrencies. They are cryptographic assets based on blockchain technology. However, they cannot be exchanged or traded equivalently like other cryptographic assets.(What Is NFT and How Does NFT Work? Everything You Need to Know, n.d.)
Who is buying them?
Popular collections of Nfts such as Bored Ape were usually marketed to celebrities and other rich personas under the public scrutiny. Pieces by artists such as Beeple can sell for over 49 million dollars and purchasers of the currency include Lindsay Lohan, Justin Bieber,Shaquille O’Neal, Gwyneth Paltrow and many more with popular quote by Reese Witherspoon being, “Crypto is here to stay.”
Celebrities such as Snoop Dog see them as a way to deepen their connections with fans, thus laying the path for purchase of Nft’s as slightly more affordable items to the economically higher strata of the general public.
Why are celebrities buying them?
The rapid expansion and boom of interest in the life of celebrities by the public media has started making its mark in the modern world. With public personas having carved large audiences of millions, their words and actions have some level of sway with the public, and thus, on their financial decisions such as prolonged, volatile cryptocurrencies such as NFt’s having distinct advantage.influence
Per sources, celebrities such as Gary Vee and Logan Paul own over 3,000 NFT’s, producing the resultant question, “Why are celebrities buying NFT’s?”.
While the answer may be subjective, a major factor is the sheer nature of NFts. Scarcity, speculation and hype is ripe in this digital media, thus attracting the attention of high-profile buyers that can afford to purchase it. The high profile of the buyer or artist generates a feedback loop that makes the media more desirable, causing a steep rise in its price, and the cycle repeating.(BitKan - Buy Bitcoin, Ethereum and Altcoins With Ease, n.d.)
While some see them as investment opportunities while others view them as opportunities to make charitable donations and raise money for creators, the personal reasons of the buyers may vary.
BitKan - Buy Bitcoin, Ethereum and Altcoins With Ease. (n.d.). BitKan.com. Retrieved January 15, 2023, from https://bitkan.com
What is NFT and How Does NFT Work? Everything You Need to Know. (n.d.). Simplilearn.com. Retrieved January 22, 2023, from https://www.simplilearn.com/tutorials/blockchain-tutorial/what-is-nft
W. (2022, July 18). Why are Big-Name Stars Buying NFTs? -. Why Are Big-Name Stars Buying NFTs? -. Retrieved January 22, 2023, from https://t2conline.com/why-are-big-name-stars-buying-nfts/