Non-fungible tokens or NFTs have opened up a new space of expression and communication for the digital audience. The global market for collectables is at an all-time boom with digital art in the form of non-fungible tokens fashioning themselves as a great investment and gifting option. While it is popularly believed that NFTs are of interest only to crypto lovers, with genres like art, fashion and sports joining the NFT bandwagon, the interest avenues have opened up for all. Festivals like Diwali and Dhanteras are approaching soon, and creators don’t want to miss this opportunity. Crypto Diwali shopping bags and renditions of Goddess Laxmi and diyas are trending on NFT platforms.
How about gifting yourself the original version of the digital sketch of a lehenga created by Manish Malhotra for Kareena Kapoor rather than an actual lehenga this Diwali? How about gifting the digital reel of Dinesh Karthik’s match-winning moment from 2018 as an NFT to a cricket lover? Like it or not, thousands of Salman Khan’s fans are ready to gift themselves the NFTs of his movie avatars and posters with autographs.
Post the announcement of actor Salman Khan’s NFT collection launch on BollyCoin, the platform has reportedly sold more than 20 million worth of crypto tokens that can be used to buy his NFTs post-launch. A trend that’s making experts question, “Are NFTs the new investment option for millennials this festive season?” The NFT fever that has been dominating the west for a long time, has finally entered the Indian mindset.
NFTs are here to stay
The first NFT was launched in 2015 on the Ethereum blockchain. Almost seven years later, the crypto world today is witnessing the NFT renaissance with auctions making headlines every other day. With several Bollywood actors, cricketers, designers and artists entering the digital memorabilia space, 2021 has already been labelled as the iconic year of the crypto movement making its way into popular culture.
While most of us are still trying to understand the nitty-gritty of crypto trading, NFTs (non-fungible tokens) have started contributing millions to the crypto art market already. According to the market tracker, NonFungible.com, more than 52 lakh NFTs have been sold worldwide in the last year. While some experts believe that the NFT bubble will burst soon, others are confident that the NFT revolution is here to stay, and the recent sales numbers appear to support the argument in favour of NFTs.
Celeb participation driving the popularity of NFTs in India
Earlier this month, designer Manish Malhotra entered the crypto world with his NFT collection. One of his five NFTs, the digital version of the sketch of a sari worn by Deepika Padukone in the movie Yeh Jawani Hai Dewani was sold in seconds for close to 2 lakhs. Forget about the sari, collectors are ready to pay a hefty amount for the digital version of the sari sketch!
Celebrity participation is driving more Indians to participate in the crypto metaverse. To tap into this sudden NFT boom and the festive craze in India, the actors are joined by cricketers like Dinesh Karthik and Rishab Panth. Karthik has immortalized his 2018 match-winning moment into a digital reel as an NFT and has put it up for auction this month. Rishab Panth’s digital collectables will be auctioned on Rario, a cricket-based NFT platform.
Safe to invest in? The future of NFTs
“NFTs are definitely here to stay. It is not a trend; it is a movement towards the future of growth for art and artists. What might change is the perspective of the collectors. Some of the over-hyped NFT projects might turn out to be short-lived. What will continue is the work of artists who are working towards or supporting a cause. NFT investors or collectors will soon realize the potential of these digital artworks and start investing in them to support a cause,” believes, Maliha Abidi, International NFT artist, writer and social activist.
In the current scenario, the future of NFTs is hard to predict. Fad or fantastic, only time will tell. With no specific laws regulating the trading of NFTs in India, the future appears both uncertain and positive
“Before investing in an NFT, it is very important to do your research well. Please do proper due diligence before buying an NFT. There are risks associated with NFTs, especially when you are trading with these formats. Check for ownership and authenticity. Be careful,” advises Abidi.
Cryptocurrencies around the world exist in the grey area between regulated currencies and open financial markets. India has adopted a conservative approach to crypto. So far, there have not been any official announcements about the regulation of crypto in Indian markets. India is on its way to the hub for the next NFT art wave, explains Neha Srinivasan, Vice President, Strategy and Finance, Reliance Foundation
It might be difficult at present to understand the rationale behind the price of a piece of digital art. NFTs are an interesting new type of investment, but they might not be right for everyone. It's best to watch this phenomenon unfold from the sidelines where your money is safer, she advises.
Experts believe that this new trend will resolve the problem of duplication and provenance eventually; a much-needed requirement for art and artists. Will this digital disruption change things for good? Let’s wait and watch.
It is recommended to consult a professional to understand the environmental impacts, investment options and risk advice.
Read More: What are NFTs? The difference between Fungible and Non-Fungible Tokens