Billionaire investor Mark Cuban has been at the forefront of the wave of interest in blockchain technology, smart contracts and NFTs, or non-fungible tokens.
It’s “like the early days of all new technologies, emotion sometimes creates unique situations,” Cuban tells CNBC Make It.
Recently, NFT-based art in particular has sometimes sold for hundreds of thousands of dollars, but according to Cuban, “as more participants enter the [NFT] market, it will be more efficient and prices will stabilize, “he says.
NFTs are unique cryptocurrency tokens that are used to represent assets, such as digital artwork, music, or movies. NFTs can be bought and sold, like physical assets, but because they run on the blockchain, a decentralized digital ledger can be tracked documenting the transactions, ownership, and validity of the asset they represent.
One of their great benefits is that they allow creators to pay since their content is distributed on the Internet.
For example, if an artist puts their NFT-based artwork up for sale, a buyer could purchase a unique token that represents the asset and can then prove the authenticity and ownership of the digital art through the blockchain.
According to Cuban, that’s where the value lies. “The technology is real,” he says. “The impact is real and permanent.”
Cuban predicts that NFTs will revolutionize the art, music and film industries.
“[B]The blockchain and smart contracts and markets are here to stay, “he says.
Recently, the “excitement” surrounding the NFT market has led to record-breaking art auctions; For example, an NFT-based video clip created by artist Mike Winkelmann, known as Beeple, sold for $ 6.6 million last week after originally being bought for around $ 67,000, while a crypto version of the meme from Nyan Cat from 2011 was auctioned and sold for around $ 590,000.
In sports, NBA Top Shot, an NFT platform that makes it easy to buy and sell short clips of popular players, has earned more than $ 280 million in sales to date, according to the CryptoSlam website.
The music industry is also diving into the market, with bands like Kings of Leon announcing that they will release a new album as NFT for a token priced at $ 50; The offer will be open for two weeks beginning Friday at noon ET. and in the end, no more will be done.
As for Cuban, he has already taken advantage of the NFTs by auctioning digital goods online, including a video clip of the Mavs Suns game day experience. He also owns NFT-based digital assets, including a “Maxi Kleber dunk Moment” card that he considers collectible and as valuable as a physical sports card. Cuban said he wouldn’t sell, but other Maxi Kleber digital dunk games have sold for between $ 35 and up to $ 800 on the NBA Top Shot website, which Cuban describes as a massive innovation.
Disclosure: CNBC owns exclusive off-network cable rights to “Shark Tank.”
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