Surely one of the newest advances in crypto world are NFTs. They are selling for thousands and sometimes even millions of dollars. Visa also decided to add an NFT to their collection, namely the CryptoPunk #7610.
What are NFTs?
NFT stands for non fungible token. Fungible means fungible and non fungible means not fungible. But what is a non fungible token?
A non fungible token is a unique token. There really is only one! It will probably become clearer for you when we link it to a comparison.
Bitcoin (BTC) is a fungible token. BTC is fungible. If you sell your BTC today and buy it back next week, the chances are very small that you actually have the same Bitcoin, and you will never be able to check. After all, there are 21 million identical coins of BTC.
With an NFT, it works differently. If you were to sell CryptoPunk #7610 today and buy it back next week, you would know for sure that you have the exact same token. There is only one token, the token is unique.
CryptoPunk is a collection of 10,000 NFTs. These are 10,000 different characters processed in pixel art. The Punks are often sold for hundreds of thousands of euros and there seems to be no stopping them. Certainly not now that Visa is also investing in them.
Visa is, of course, one of the world’s largest financial parties and so it certainly says something that they decided to invest in such an NFT. It gives extra confidence in the world and is therefore certainly a wonderful step for NFTs.
Visa decided to go for the CryptoPunk #7610. This is 1 of the 3840 female Punks and as most characteristic features she has a mohawk, green eyes and red lipstick. Visa is not the first owner of this particular NFT, in fact there were 6 previous owners.