It is genuinely amazing how bananas some fans will go for something like an original signature on an item from their favorite celebrity. This is because it brings with it a sense of closeness to the celebrity individual in question accessed via that item. Historically, this is not unlike the idea of relics, items touched by saints or prophets, which some even believed were blessed with the ability to bring forth miracles. Believe that or not, there are definite correlations between this historical trend and a recent phenomenon in Korean popular music (K-pop) in the use of non-fungible tokens (NFTs).
What Are These NFTs Exactly?
NFTs are the digital equivalent of a signature of authenticity, usually in the form of digital data stored in a blockchain. The data in question may be original mp3 files, jpg images or videos, which may have been created, used or otherwise interacted with by specific people, e.g. celebrities.
In the music industry in particular, NFTs, like relics, can sometimes be regarded as akin to priceless artifacts, as they may contain data such as the original computer code used to record a famous song for the first time, immortalizing that moment in time. Unsurprisingly, therefore, there are super fans out there that will do anything to buy NFTs of this kind no matter the cost, making the NFT marketplace extremely competitive.
NFTs As An Investment
Considering the steady rise in Korean popular culture in the West, not just in the music industry, but also with TV shows like Squid Game taking platforms like Netflix by storm, it should surprise nobody that NFTs can be potentially very lucrative indeed. However, just as any stockbroker will warn you, any investment, no matter how seemingly secure, can just as easily nosedive in value. This may be especially true of an NFT depending on the data contents of the blockchain in question and how it relates to and is treated by fans as time progresses.
The Investment Risks of NFTs
NFTs are a particularly risky investment, and fundamentally unlike buying something like a house or a car, which can be insured and/or legally protected via property rights. In fact, there is no legal avenue for financial damages if you purchase an NFT only to see it copied and downloaded and then sold by someone else. For that reason, it is essential that you protect your NFT, in the same way as you would remember to lock your car, especially if that car were uninsured.
Similarly, just because a file comes in the form on an NFT does not necessarily mean that that file genuinely is authentically original or unique. Just as a celebrity’s signature may be forged for fraudulent purposes, so to may NFTs be sold under false pretenses. Therefore, it is very important to examine the credentials of anyone purporting to sell NFTs of unique digital objects.
Proceed As You See Fit
Fundamentally, however, it is up to you what you do with your own money, and if what you want to invest in is a non-fungible token of allegedly unique and/or original digital data, attached to someone who inspires you and whom you feel very strongly about, and you are prepared to accept the risks associated with such an investment, then who is anyone else to tell you to do differently?