Introduction
Whether it’s crypto art or gaming assets, institutional investors have started to invest in non-fungible tokens. And why wouldn’t they? NFTs are now the center of attention. With more discourse around NFTs, institutional investors are starting to view blockchain title deeds as a type of digital artifact. For NFTs, it has been a long journey since the first CryptoKitties phenomenon.
Investors Understand the Potential Value of an Asset
Today, the Ethereum-based token standard has managed to morph into a much deeper realm of digital art. Investors view the endless possibilities that come with integrated permanent value on music and collectible art. But many institutional investors like Scalar Capital, Sfermion, and Delph Digital are investing heavily in digital collectibles.
In fact, the institutional investors understand the striking shift for NFTs to go from a little-known digital corner to a hot investment hub. It never ceases to amaze users that they can just upload an artwork file on an NFT auction and then use the unique blockchain ledger record to sell that piece of artwork.
More Groundbreaking NFT Auctions
Recently, Beeple’s NFT artwork managed to set the highest record of selling at $69 million. Not to mention Twitter’s Jack Dorsey also auctioned the NFT of his first tweet. The New York Times was also successful in selling one of their articles.
More Profitable and Laborious Process for Investors
But getting your hands on NFT assets has started to become a laborious and profitable process. At the moment, however, many investors are concerned about the tax implications attached to the NFTs. It is the reason the company encourages experienced investors to invest and who understand the dynamics of blockchain business and can navigate the market.
NFT Plans
The company also intends to raise more than £10 million and put 200 million shares at the rate of 5 pence. As the stock of the company starts to trade, investors can expect to invest in infrastructure and collectibles, and digital rights.
For instance, high net-worth investors see NFTs as the next big investment craze. It means the institutional investment will continue to flow in the direction of NFTs for at least the next couple of years. Besides, there are now digital marketplaces where you can buy or sell NFTs. But investors are also aware of the fact that many of these marketplaces use NFTs as a form of collateral on loans.
Conclusion
The truth is that investors realize that there’s a potential to improve functionality in terms of choosing NFT custodians. In fact, investors want it to be more complex than just locking valuable assets away in a digital vault. On the other hand, institutional investors hail NFTs for their integrated approach. In retrospect, it is the reason NFT has become one of the most exciting and biggest digital marketplaces.
REFERENCES:
- https://medium.com/play-to-earn/institutional-money-flowing-into-nfts-play-to-earn-38-be86914ccb24
- https://www.bloomberg.com/news/articles/2021-04-01/crypto-entrepreneurs-plan-london-ipo-for-nft-investment-firm
- https://www.coindesk.com/next-step-for-institutional-defi-institutional-nfts
- https://finance.yahoo.com/news/next-step-institutional-defi-institutional-090138173.html