The NFT craze is currently sweeping the internet, and investors are making huge profits. Just recently, Beeple’s artwork made history as the highest selling NFT. The artwork sold at Christie’s auction house went for a whopping 69 million US dollars. The success of these tokens has drawn more and more investors to the digital market, with Tiktok as the latest.
What is an NFT?
Before we get into Tiktok’s flirt with the NFT market, let’s first understand what an NFT is. NFT is an acronym for Non-Fungible tokens and is a unique asset that you can purchase and sell that is not interchangeable. Therefore, the unique nature of these tokens doesn’t allow users to interchange them.
Fungible tokens, on the other hand, like cash, are interchangeable. For example, one can trade ten-dollar bills with twenty-dollars.
Some examples of NFTS include photos such as the viral “side-eyeing Chloe,” videos, gifs, and audio files, among others.
Today we will talk about Tiktok’s developing interest in the NFT market.
Tiktok and NFT
Rated the most downloaded app in 2020, Tiktok is an app for sharing, creating and watching short video clips. This app is growing fast, with more than a billion people across the globe using it monthly.
The app has a lineup of Non-Fungible Tokens ready to be dropped. Their top creators will provide the content for this project. Some of these creators include Lil Nas X, Bella Poarch, Gary Vaynerchuk and Rudy Willingham, to mention a few.
Tiktok is a fantastic platform for artists to share their artwork as it is easy to go viral. Songs like Heartbreak Anniversary, Savage by Megan Thee Stallion, Buss it by Erica Banks, Doja Cat’s Say So and Lil Nas’s Old Town Road, among so many others.
Tiktok aims to use the NFT space as a tool to empower its content creators. This famous platform says these tokens will make the creatives recognized and, in turn, get rewards.
In a bid to address the energy consumption rates issue, Tiktok will use the Australian startup Immutable X. Immutable X is the 1st layer-2 scaling solution aimed at reducing transaction fees to zero and giving immediate trade on the Other blockchain.
In addition to this, the company confirms that all tokens traded on it are “100% carbon neutral”.
Mark your calendars as the drop will happen on October 6 and throughout the rest of the month. In a recent announcement, Tiktok said Lil Nas X would help curate the first collection.
In conclusion, it is still too early to predict how Tiktok’s sudden interest in NFTs will go. However, just like Facebook and other social networks, the company has made a massive step by joining the NFT space.
Stay with us for more updates on the story.