Non-fungible tokens (NFTs) are digital representations of certifiable, irreplaceable assets. NFTs have been gaining popularity over the last few years, and now, several celebrities are beginning to enter the NFT space.
Tom Brady recently auctioned off his autograph as an NFT, helping to spark the interest of other celebrities and inspiring them launch their NFTs.
This article will explore who else is getting involved in the NFT space.
Definition of NFTs
Non-fungible tokens (NFTs) are blockchain-based digital assets authenticated and stored via a distributed ledger technology. NFTs are unique and not interchangeable, due to their digital signature and identifier, which makes them different from traditional cryptocurrencies like Bitcoin. They have become increasingly popular amongst celebrities and other famous figures due to their ability to tokenize physical items, creating a unique digital asset for each itemized item that can be bought, sold or traded on blockchain networks.
NFTs typically represent ownership of an item or a collection of tangible items that have also been tokenized electronically. As such, NFTs generally exist on the Ethereum blockchain, but can also be found on networks such as NEO or EOS. Celebrities using this technology for creative or charitable endeavors include Paris Hilton, Mark Cuban, Ashton Kutcher and DJ Khalid.
As with any new technology that high profile individuals adopt, there will surely be increased public visibility in the space. This will undoubtedly provide additional opportunities for artists and creators alike to leverage their highly sought-after assets while allowing interested buyers access to a limited edition product offering within the crypto universe.
Tom Brady’s Autograph helps celebrities launch their own NFTs
Tom Brady, the legendary NFL Super Bowl champion and seven-time MVP, recently released a blockchain-based digital collectible asset – a non-fungible token (NFT) that is his digital autograph.
The NFT exhibits some of the most defining moments in Brady’s career, such as the first touchdown pass, his early NFL pass to Randy Moss and his first Super Bowl victory. The card is provided with a digital certificate of authenticity from Brady’s website and is stored on the Ethereum blockchain.
This release marks Brady as one of the major celebrities in the emerging NFT space. Other major celebrities include singer-songwriter Grimes who have released an array of ‘crypto art’; actor William Shatner has sold trading cards that represent iconic Star Trek scenes; NBA Top Shot has attracted similar interests from LeBron James and Drake; while fashion designer Loubna Berrada is offering limited edition wearables to commemorate her designs on NFTs.
Celebrities Involved in NFTs
Non-fungible tokens (NFTs) have become popular for celebrities to monetize their creativity. Tom Brady recently made news when he released his autograph as an NFT, making this the latest example of celebrities getting involved in the NFT space. But Brady is far from the only celebrity to try their hand at launching their NFTs.
Let’s check out other celebrities who have joined the NFT craze, from musicians to athletes to movie stars.
Mark Cuban
Mark Cuban, the billionaire entrepreneur and owner of the Dallas Mavericks, is one of the most high-profile celebrities to get involved in Non-Fungible Tokens (NFTs). As a result, Cuban has been involved in a few projects related to NFTs.
The first was UnikoinGold (UKG), an Ethereum-based digital currency used as a decentralized platform for online esports gaming and promotions. Stategy partners like Streamlabs and Kambria back UKG.
Cuban’s second project was a collaboration with NBA Top Shot, the basketball-focused NFT marketplace that earned over $200 million since launching in October 2020. Cuban invested in and became a partner in this startup that lets collectors buy, sell, or trade limited edition digital cards featuring their favorite NBA players’ best highlights.
In addition to his investments in these two startups, Cuban also used an NFT in 2018 as part of a move to trademark ‘reality game show Shark Tank” on Ethereum blockchain. This strategy is an example for other businesses wishing to safely store their branded content on blockchain technology.
Paris Hilton
Paris Hilton is well known for her quirky and fashionable lifestyle, but she may soon be recognized for her involvement with NFTs. Over the past few months, the businesswoman turned reality TV star has seen great success in the non-fungible token space. She recently launched a digital art collection titled “Renewed Perspective,” in partnership with blockchain platform Ethereum and artist Mike Solomon. The collection includes artwork of coins, moons, butterflies and angel wings created using AI elements to reflect the artist’s spiritual beliefs.
The pieces were released as three-dimensional NFTs on SuperRare, Rarible and Foundation markets. To date, Hilton’s “Renewed Perspective” series has sold over $500,000 worth of NFTs to art enthusiasts worldwide. In addition to this success Paris Hilton also collaborated with SwagCrypto to launch a special edition of their mobile game called “Space Herpes”. The game was released via ERC 721 tokens with 50 editions available for sale on Opensea marketplace.
Furthermore Paris Hilton added a few physical bits to her collection as well that have fused in a combination of digital capabilities onto tangible items such as sneakers which are contained within sealed packages that can be auctioned off using Ethereum based technologies such as Poké Crypto.
Tyler Winklevoss
Tyler Winklevoss is an American entrepreneur, angel investor and Olympian best known for co-founding the social networking service ConnectU, along with his twin brother Cameron Winklevoss. He was also an early adopter of the digital asset Bitcoin, having purchased $11 million worth in 2013.
The Winklevoss twins have also entered the Non Fungible Token (NFT) market by launching a company called Nifty Gateway. Nifty Gateway is involved in creating NFTs through artworks, GIFs and sports collectibles on Ethereum blockchain technology.
Tyler has been featured in various web shows focused on cryptocurrency and blockchain technology, including the YouTube series “Crypto Until Infinity” where he explains his views on using blockchain technology to revolutionize industries. He recently teamed up with Snoop Dogg to be featured in an NFT music video sponsored by Gemini and Dogecoin. The video was released as part of their marketing campaign to educate consumers about Non Fungible Tokens (NFTs).
Additionally, Tyler has donated some proceeds from his recent artwork sale to two charities—BLM Global Network Foundation and Invisible People—as part of Black History Month 2021 celebration. Tyler hopes this move will help bring attention to the issue of racial injustice at a larger level.
Lil Yachty
Lil Yachty, an American rapper born Miles Parks McCollum, is a noteworthy individual who has gotten involved in the NFT market. On March 25th of this year, Lil Yachty released his first NFT titled “YachtyCoin” as a one-off NFT find on an artwork minted by notorious artist Tristan Eaton. The asset itself is a piece from Lil Yachty’s “NFT Collection” named “Do not disturb the vibes!” and was sold for around 30 ETH ( Ethereum ) during the auction. It was widely perceived that this would be the start of a series of works from YachtyCoin and sure enough a few days after that, Lil Boat announced that he would be releasing his album “Lil Boat 3: The Rocket Ship” as an NFT based album on April 9th at 8 PM PST.
Aside from those NFTs, Lil Boat is also active in his decentralized production platform called “Yacht Club” which allows users to engage with artists uniquely among other virtual communities by holding microtransactions for virtual products such as memes and unique clothing designs. Furthermore, access to new music drops and early insights on upcoming projects can be found through membership in this highly anticipated project which aims to blur the lines between traditional artist-producer relationships and social media exchanges.
Lindsay Lohan
Lindsay Lohan has recently joined the NFT market. The actress and entrepreneur has announced her partnership with branding company, Mint Monkey, to launch an NFT collection that offers fans a variety of rare digital assets. The collection, featuring vintage photos from Lindsay’s early career, will also feature a series of animated “digital portraits” and selfie-style photos from some of the actress’ most iconic moments. Proceeds from the project will benefit Lohan’s charity, the Youthful Heart Foundation.
This isn’t Lohan’s first foray into crypto-currency either; in 2018, she partnered with investors to form Singular DTV (S-DTV), a start-up that sought to utilize blockchain technology to provide entertainment rights and royalties management solutions for music rights holders. She has also invested in blockchain projects such as Acorn Collective and CryptoRatings.io and other cryptocurrencies such as Bitcoin and Ethereum.
Benefits of Investing in NFTs
Non-fungible tokens (NFTs) have exploded in popularity recently, with many celebrities, such as Tom Brady, investing in NFTs.
This new technology provides a unique opportunity for celebrities to launch their digital collectibles, and can even offer unique financial benefits.
We’ll discuss more details in this article and explore the benefits of investing in NFTs.
Low Barrier to Entry
Investing in NFTs is attractive for many reasons, but primarily for the low barrier to entry. That means more people can start investing than in traditional investments, allowing you to diversify your portfolio and turn quick profits. With various investment options that require little capital to get started and the ability to buy fractional shares, it is possible to invest without needing large sums of money upfront. This provides an opportunity for amateur investors, or those with limited capital, to participate in the NFT market and benefit from the potential profits that this space can generate.
Additionally, NFTs offer investors greater control over their portfolio than traditional investments. Most NFTs are digital tokens which are open-source and can be freely traded on exchanges allowing investors to easily manage their holdings with more ease than with traditional assets such as stocks or mutual funds. These exchanges help mitigate the risk associated with investing while providing liquidity that allows holders of these assets to quickly profit from market opportunities.
The growing popularity of non-fungible tokens has attracted many prominent names including actor Ashton Kutcher and rapper 50 cent have invested in NFTs; demonstrating its potential as an increasingly sought after asset class. Just last month 50 cent sold off his music catalog as an NFT auctioning off 21 tracks for $2 Million demonstrating how valuable these digital artifacts have become and how profitable they can be when properly leveraged by collectors and investors alike.
Liquidity
Liquidity is one of the key benefits investors in Non-Fungible Tokens (NFTs) enjoy. Compared with traditional investments, one of the main advantages is that it’s easier to access NFTs and buy and sell tokens quickly because of their openness to secondary markets. It also offers a more liquid asset thus allowing quicker transfer of ownership among buyers, sellers, and potential liquidity providers.
Due to the increased liquidity of this kind of investment, many celebrities have recently started getting involved in NFTs. This includes high profile names such as Mark Cuban, Mike Tyson, Paris Hilton, Lindsay Lohan, William Shatner and other well-known personalities. All these celebrities are leveraging the accessibility and liquidity offered by investing in NFTs due to their desire to ensure value for their assets in case they need to liquidate them quickly for whatever reason.
Potential for Appreciation
Investing in Non-Fungible Tokens (NFTs) has the potential to offer tremendous returns. Many prominent investors, such as Mark Cuban, have placed bets on the success of the NFT market. By buying and holding an NFT, you are not only adding a unique and valuable asset to your portfolio, but also betting that its value will appreciate as the NFT market continues to grow.
In addition to conventional investing celebrities like actress Jessica Biel, basketball star Michael Jordan and crypto proponent Gary Vaynerchuk have all been noted for their involvement in the novel digital art open source world of investing. Cuban notably invested in Dapper Labs’ NBA Top Shot where users can purchase packs of collectable moments from famous sports games; while Jordan is a backer at CryptoKitties where users can purchase digital cat avatars. Similarly, Biel became an investor in Plantoids which facilitates users purchasing/creating artwork through blockchain technology and smart contracts.
Overall NFTs offer a potentially innovative way for people to invest in creative digital media which will continue to gain notoriety and possibly drastically increase ones return on investment.
Risks to Consider
The success of Tom Brady’s recent NFT launch has led to more celebrities getting involved in the NFT space. While it can be a lucrative opportunity for many, there are still some risks to consider before jumping in.
Let’s take a look at some of the potential risks associated with launching NFTs.
Volatility
Investing in non-fungible tokens (NFTs) can be highly risky due to the volatility of their prices. As with any investment, it is important to research and assess the risk associated before diving in. NFTs have experienced an extraordinary level of growth and appreciation in price over a short period. Consequently, it is very difficult to predict what could happen next and what levels of price volatility investors may experience going forward.
NFTs derive their value from the underlying artwork or digital asset they are attached to, as well as the perceived scarcity or uniqueness of those assets. Since these criteria, especially perceived scarcity and uniqueness, can change fairly quickly, investors must be prepared for changes in value over time. On the other hand, certain NFTs have been known to appreciate rapidly due to their appeal and collectibility which may bring great rewards but also runs a very real risk of just as quickly decreasing in value due to market forces or circumstances out of the user’s control.
It is important to keep a close watch on developments within this space and react accordingly when needed. Additionally, there are also potential cyber security risks associated with investing in NFTs; malicious parties may seek to exploit holes within cryptocurrency wallets leading to stolen digital assets or funds being lost forever due to locked smart contracts so protecting your wallets should be an utmost priority when dealing with digital investments like these.
Regulatory Uncertainty
When deciding whether to get involved in the NFT space, it is important to consider the regulatory uncertainty surrounding NFTs. As with many new technologies, regulators are still trying to gain a full understanding of the implications of NFTs and what regulations should apply. Similarly, many government securities and other laws have yet to distinguish between digital assets and tangible property. These issues can create challenges for investors trying to understand their rights as purchasers of NFTs, making it difficult to assess true market values or be sure of the outcomes when entering into transactions.
In addition, there is a lack of oversight in the industry due to incomplete recordkeeping; most transactions occur over-the-counter (OTC). Therefore, purchasers take on more risk by not having proper records that can help safeguard against potential losses. Legal advisors and other experts may be necessary as a necessary risk management tool when considering entering into any sort of financial transaction involving NFTs.
Counterparty Risk
When investing in any asset, there is always the risk that the other party involved in the transaction may not follow through with their obligations. This is known as counterparty risk, and it is particularly important to consider when investing in Non-Fungible Tokens (NFTs).
Counterparty risk can be divided into two key elements: one related to technological risks (unforeseen cryptosystem bugs) and another related to legal risks (like fraud or lack of compliance with regulations). Counterparty risk on NFT investments can prove riskier than other investment opportunities, due to the decentralized manner of their structure. On that note, you need to do your research on the issued tokens and blockchain protocol which they are built on, before investing.
It is also worth noting that some celebrities have dabbled in the NFT market. This opens up a range of different counterparty risks – for example, if a celebrity were to suddenly face reputational damage stemming from an association with an NFT then its value could be reduced as well. While these types of counterparty risks are hard to predict and certainly unlucky when they do happen, understanding them can help you make an informed decision before committing funds into NFTs.
Conclusion
In conclusion, celebrities have begun to recognize the value of non-fungible tokens (NFTs) and leverage it to enter the NFT space. Tom Brady’s autograph was among the earliest NFTs auctioned off, giving other celebrities a blueprint to create their NFTs. Since then, celebrities, such as Kim Kardashian and Kanye West, have launched their NFTs.
This trend has contributed to the growth of the NFT marketplace, as well as the overall blockchain space.