London Daily

Focus on the big picture.
Monday, Jul 21, 2025

What are NFTs and why are they suddenly so popular?

What are NFTs and why are they suddenly so popular?

Non-fungible tokens (NFTs) are the latest cryptocurrency phenomenon to go mainstream. What are they and why are they becoming so popular with artists?

Blockchain, a relatively new technology, is already revolutionising many aspects of our lives such as healthcare and the economy. But there is always a heightened level of excitement when new ground is broken.

Enter the NFT. Underpinned by blockchain, this form of cryptocurrency is using technology to catalogue, buy and sell digital collectibles, including art, music, video games and more.

The aim is to recalibrate and redefine the value of our culture. And this is just beginning to happen with something called non-fungible tokens, or NFTs.

What is an NFT?


NFTs are a form of cryptocurrency like Bitcoin, only instead of holding money, they contain assets like art and music.

A fungible token is an asset that can be exchanged on a one-for-one basis. Much like fiat currencies such as dollars or cryptos like Bitcoin, each one has the exact same value and can be traded freely.

A non-fungible object, by contrast, has its own distinct value, like an old house or a classic car. Cross this notion with blockchain, the technology which underpins cryptocurrencies, and you get NFTs.

These are effectively digital certificates of authenticity that can be attached to digital art or, well, pretty much anything else that comes in digital form; audio files, video clips, animated stickers, or even this article.

NFTs confirm an item's ownership by recording the details in a digital ledger known as a blockchain, which is public and stored on computers across the internet, making it effectively impossible to lose or destroy.

At the moment, these tokens are white-hot in the collecting world, where they are being used to solve a problem central to digital collectibles: how to reclaim the value and ownership of something that can be easily and endlessly duplicated.

Mike Winkelmann, aka Beeple, shows off his digital art process in his home studio.


But can’t you just copy something off the internet?


You can take a photo of the Mona Lisa in the Louvre or buy a print from the museum gift shop but that doesn't mean you own the original artwork. The same can be said of modern art forms like digital art which can be downloaded from the internet and printed.

One purpose of NFTs is that they can be used to trace an object's digital provenance, allowing a select few to prove ownership. Broadly speaking, it's a way to create scarcity - albeit artificial - so that you can sell something for higher prices thanks to its scarcity.

"All the time, money, and effort you spend in your digital life, you can create value for that," says Chicago fund manager Andrew Steinwold, who started an NFT fund in 2019. "You have property rights in the physical world. Why don’t we have property rights in the digital world?"

Some NFT issuers give full copyrights to the buyer, though others do not.

Who is using NFTs?


Beeple, a conceptual 3D artist whose real name is Mike Winkelman, became the third wealthiest living artist after an NFT containing his work sold for $69.3 million (€58.9 million) at auction in March, smashing all records for previous NFT sales.

Last month, Kings of Leon became the first band to issue NFTs. They are selling three different tokens: one with their new album, another with live show perks like front row tickets for life, while a third contains exclusive audiovisual art.

Stark Trek actor William Shatner sold 90,000 virtual trading cards as NFTs last year for $1 (€0.85) each. Electronic musician Grimes sold $6 million (€5.1 million) worth of her digital art last month, including a video clip featuring winged cherubs floating in pastel dreamscapes that went for $389,000 (€331,000).

Clips of NBA star LeBron James dunking are selling for as much as $225,000 (€213,000). Actress Lindsey Lohan sold an image of her face. You can also buy virtual land in video games, or meme characters like Nyan Cat.

According to digital artist Anne Spalter, who was initially a sceptic but has now sold her own art as tokens, NFTs "have opened up art to a whole bunch of people who never would have gone to a gallery".

Newsletter

Related Articles

0:00
0:00
Close
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
×