One year of NFT: NFTs or non-fungible tokens have been around since 2014, patiently hiding behind the covers for people to finally discover them in a new way. It became a reality in India seven years later in 2021, when more and more Indian celebrities including movie stars, sportspersons, musicians and others turned their heads to this digital token to launch their own NFT collections. In recent months, digital tokenization is one area where India has been more focused than ever, and the idea has caught on. As digitization spread across the world, including in India, people became more aware of NFTs than ever before and the craze quickly took hold within a few months.
The year 2021 has largely been the year of NFTs for India. But what are they? Simply put, NFTs are a kind of digital asset that represents real-world objects such as music, art, in-game articles, videos or even social media posts. Being non-fungible, NFT cannot be interchanged with anything else as it is unique and irreplaceable. In recent times, NFTs have become a popular way to sell and buy digital artwork.
According to Abhayanand Singh, CEO of Fantico, the platform that launched superstar Kamal Haasan’s NFT collection, “NFTs are digital assets that represent real-world objects such as art, music, in-game items and videos. The simplest way to think of an NFT is to think of it as a digital collectible. NFTs are one of a kind, or at least have very limited runs. Often these assets can make great investments, because they appreciate in value over time and their valuations are unrelated to other investment markets.”
In 2021, the year that is set to bid us goodbye, Indians saw their favorite celebrities launch their digital collections and were eager enough to invest in them. This was driven by the promising nature of NFTs in the market as well as the insistence of some of the country’s great personalities to own certain tokens. From Amitabh Bachchan, Salman Khan, Kamal Haasan to Yuvraj Singh, Rohit Sharma and Manish Malhotra, celebrities from all walks of life have announced the launch or launch of their digital tokens in 2021.
But why are celebrities so eager to launch their own NFTs?
Singh says, “The fury for NFTs has taken the film fraternity and the social media industry by storm. Apart from the monetary benefits, the allure for film personalities is that it gives them a new way to reach their fans. NFTs are helping celebrities re-invest in fantasy through digital transformation.”
However, according to Sumit Ghosh, member of the Blockchain and Crypto Assets Council (BACC) and CEO and co-founder of Spark, which launched Salman Khan’s NFT collection, third parties are approaching the stars in the NFT market, which may become the next. Having the potential is a big deal in India. “Frankly, a large celeb pool is still gullible to the concept of NFTs. But a third party has approached them using their name to market NFTs, so that their fans can buy them.” He added that monetary reasons are also a major reason for celebrities to invest in these coins.
Ghosh said, “Primarily, it is the novelty of doing things like never before, everyone is talking about NFTs these days.
Factors have played a major role in making NFTs so big in 2021. However, investing in NFTs is largely a personal decision, as are cryptocurrencies and other such assets. Meanwhile experts predict that the storm will extend to other industries in the coming year, and NFTs will be here to stay.