London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

Non-fungible tokens explained – and why some are worth millions

Non-fungible tokens explained – and why some are worth millions

Recently there have been reports of artworks selling for millions of dollars – but those who buy it aren’t getting anything physical – they are getting a unique digital token known as NFTs

If you’ve heard the word NFT, or the phrase non-fungible token, and not had a clue what was going on, you’re not the only one.

Before 2021 it was a relatively rare term to hear, but in recent months it’s becoming increasingly common to hear it spoken about in relation to digital artwork being sold for millions.

NFTs are the latest craze from the world of cryptocurrency.

Christie’s auction house sold the first ever NFT artwork for a whopping $69m (£50m) this week – but the winning bidder will not receive anything physical.

Similarly, an online sale of NFTs by digital artist Pak fetched a massive $16.8million (£12.2million) at Sotheby’s. This included an image of a single pixel for $1.26million (£987,000).

Chris Torres, creator of Nyan Cat, sold his iconic meme for roughly $590,000 earlier this year


Instead, they will get a unique digital token known as an NFT. Confused? Don’t worry, we will do our best to explain.

What is an NFT?


NFT stands for non-fungible token, and is the latest cryptocurrency phenomenon to go mainstream.

In economics, a fungible asset is something with units that can be readily interchanged, like money. For example, you can swap a £20 note for two £10 notes and have the same value.

If something is non-fungible, it means that it has unique properties and can’t be interchanged with something else.


In relatively simple terms, NFTs are “one-of-a-kind” assets in the digital world, that can be sold like anything else.

NFTs can take the form of digital artwork, GIFs, tweets, virtual trading cards, music, virtual real estate and more.

They transform digital works of art and other collectibles into verifiable assets that can easily be traded on the blockchain.

These digital tokens can be thought of as certificates of ownerships for virtual or physical assets.

How do NFTs work?


No physical object changes hands, because NFTs exist exclusively in digital form.

As with crypto-currency, a blockchain (digital record) acts as a public ledger to verify ownership status.

Critics argue that these digital works can be copied and shared, and experts say that this is no different than to in the physical world.

A copy of any artwork is not the original.

The buyer of an NFT owns a “token” which proves only they have the “original” work.

Why are NFTs worth so much money?


In theory, anyone can tokenise their “one-of-a-kind” work as an NFT.

Art-collector Pablo Rodriquez-Fraile thinks the NFT boom has been accelerated by the coronavirus pandemic, but that ultimately it would have happened anyway.

He told Insider: “People have long used art to store value. Crypto extends easily into digital art.

“This is just a more modern approach to investing in art and using it like someone would use gold or bitcoin.”

Billionaire Mark Cuban told Insider that one of the reasons people pay so much is because NFTs are about scarcity.

He told Insider: “The buyer knows how many will be made and has blockchain proof of ownership.”

Experts who spoke to The Hustle also believe a boom in cryptocurrency in general has also generated interest in digital assets.

Newsletter

Related Articles

0:00
0:00
Close
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
×