- If in 2021 the NFT activity was limited to speculation and financial support of favorite artists, then the full use of tokens should be possible in the following year.
- It is noteworthy that another cryptocurrency exchange, FTX, is trying to legitimize stablecoins, which have been criticized by politicians from every country
- Banks that accepted stablecoins were offered a reward of $ 1 million.
Bitcoin turned out to be unable to overcome the upper border of the flag and after a false breakout, it rapidly fell in price to $ 48.5 thousand. In the current situation, it is rather difficult to find reasons for optimism, since the picture on the chart implies a further drop in quotes to $ 45,000.
Meanwhile, the excitement around NFT projects continues: one of the largest cryptocurrency exchanges, Kraken, is preparing to launch an NFT marketplace, which will allow those who wish to borrow against the security of their non-fungible tokens. According to the head of the exchange, if in 2021 NFT activity was limited to speculation and financial support of favorite artists, then the full use of tokens should be expected next year.
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However, Kraken has yet to develop a mechanism to permanently determine the value of NFTs, which are proposed to be used as collateral. High-value assets like CryptoPunks represent only a small share of the entire market, while the bulk of NFTs is much cheaper counterparts. Most of it is almost impossible to assess due to the lack of demand.
Another crypto exchange FTX decided to make efforts to legitimize stablecoins, against which politicians from different countries regularly speak out. FTX offered $ 1 million in reward to banks willing to accept stablecoins. Exchange representatives are actively negotiating with financial institutions in order to achieve almost instant deposits for their clients. Moreover, FTX hints at the possibility of a larger reward.
What is NFT?
An NFT is a unit of data stored on a digital ledger, called a blockchain, which can be sold and traded. The NFT can be associated with a particular digital or physical asset (such as a file or a physical object) and a license to use the asset for a specified purpose. An NFT (and the associated license to use, copy or display the underlying asset) can be traded and sold on digital markets. The extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement,[often conferring little more than use as a status symbol.
NFTs function like cryptographic tokens, but, unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are not mutually interchangeable, hence not fungible. While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value. NFTs are created when blockchains string records of cryptographic hash, a set of characters identifying a set of data, onto previous records, therefore, creating a chain of identifiable data blocks. This cryptographic transaction process ensures the authentication of each digital file by providing a digital signature that is used to track NFT ownership. However, data links that point to details such as where the art is stored can be affected by link rot.