Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

What are NFTs and why are they suddenly so popular?

What are NFTs and why are they suddenly so popular?

Non-fungible tokens (NFTs) are the latest cryptocurrency phenomenon to go mainstream. What are they and why are they becoming so popular with artists?

Blockchain, a relatively new technology, is already revolutionising many aspects of our lives such as healthcare and the economy. But there is always a heightened level of excitement when new ground is broken.

Enter the NFT. Underpinned by blockchain, this form of cryptocurrency is using technology to catalogue, buy and sell digital collectibles, including art, music, video games and more.

The aim is to recalibrate and redefine the value of our culture. And this is just beginning to happen with something called non-fungible tokens, or NFTs.

What is an NFT?


NFTs are a form of cryptocurrency like Bitcoin, only instead of holding money, they contain assets like art and music.

A fungible token is an asset that can be exchanged on a one-for-one basis. Much like fiat currencies such as dollars or cryptos like Bitcoin, each one has the exact same value and can be traded freely.

A non-fungible object, by contrast, has its own distinct value, like an old house or a classic car. Cross this notion with blockchain, the technology which underpins cryptocurrencies, and you get NFTs.

These are effectively digital certificates of authenticity that can be attached to digital art or, well, pretty much anything else that comes in digital form; audio files, video clips, animated stickers, or even this article.

NFTs confirm an item's ownership by recording the details in a digital ledger known as a blockchain, which is public and stored on computers across the internet, making it effectively impossible to lose or destroy.

At the moment, these tokens are white-hot in the collecting world, where they are being used to solve a problem central to digital collectibles: how to reclaim the value and ownership of something that can be easily and endlessly duplicated.

Mike Winkelmann, aka Beeple, shows off his digital art process in his home studio.


But can’t you just copy something off the internet?


You can take a photo of the Mona Lisa in the Louvre or buy a print from the museum gift shop but that doesn't mean you own the original artwork. The same can be said of modern art forms like digital art which can be downloaded from the internet and printed.

One purpose of NFTs is that they can be used to trace an object's digital provenance, allowing a select few to prove ownership. Broadly speaking, it's a way to create scarcity - albeit artificial - so that you can sell something for higher prices thanks to its scarcity.

"All the time, money, and effort you spend in your digital life, you can create value for that," says Chicago fund manager Andrew Steinwold, who started an NFT fund in 2019. "You have property rights in the physical world. Why don’t we have property rights in the digital world?"

Some NFT issuers give full copyrights to the buyer, though others do not.

Who is using NFTs?


Beeple, a conceptual 3D artist whose real name is Mike Winkelman, became the third wealthiest living artist after an NFT containing his work sold for $69.3 million (€58.9 million) at auction in March, smashing all records for previous NFT sales.

Last month, Kings of Leon became the first band to issue NFTs. They are selling three different tokens: one with their new album, another with live show perks like front row tickets for life, while a third contains exclusive audiovisual art.

Stark Trek actor William Shatner sold 90,000 virtual trading cards as NFTs last year for $1 (€0.85) each. Electronic musician Grimes sold $6 million (€5.1 million) worth of her digital art last month, including a video clip featuring winged cherubs floating in pastel dreamscapes that went for $389,000 (€331,000).

Clips of NBA star LeBron James dunking are selling for as much as $225,000 (€213,000). Actress Lindsey Lohan sold an image of her face. You can also buy virtual land in video games, or meme characters like Nyan Cat.

According to digital artist Anne Spalter, who was initially a sceptic but has now sold her own art as tokens, NFTs "have opened up art to a whole bunch of people who never would have gone to a gallery".

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×