NFT = Scam ?
NFTs (Non-Fungible Tokens) are the subject of heated debate as to their true value and legitimacy. While some see them as a revolution in the way we create, exchange and own digital assets, others call them a scam...
Digital Property Explained
On the "classic" Internet, it is often difficult to define the real ownership of a digital asset. You may have accounts on social networks, virtual objects in online games, but in the end, these assets don't really belong to you. The platforms on which they are hosted retain total control over these "digital objects".
On the other hand, NFTs open up a new era for digital property. Thanks to blockchain technology, each NFT is unique, indelible and unforgeable. If you own an NFT, you actually own the associated digital asset, be it a work of art, a video, a piece of music or any other digital content.
An NFT is first and foremost a (digital)title deed .
It could be a special document that says you're the owner of a unique and valuable object, such as a work of art, a song, a video game or even a funny video. This special document is your NFT!
Like a title deed to a house,
the NFT indicates that you are the one and only owner of this digital object.
No one else can claim to own the same thing as you. It's like having a magic key that gives you access to something very special in the digital world.
A famous example is the NFT of a monkey that was sold for a huge sum. But it' s important to understand that NFTs aren't just for monkeys or funny objects or scams! They can represent all sorts of different and interesting things.
A concrete example: the digital artist and his NFTs
Let's take the example of a talented digital artist who shares her creations on social networks. Despite her success, she struggles to get a fair wage for her work.
Thanks to NFTs, this artist can now offer her works as NFTs and sell them directly to her fans. In this way, she can be fairly rewarded for her talent and creative investment.
For example:
- An illustrator can create an NFT to sell her digital drawings and prove that you are the sole owner of this work. Something that wasn't possible before. Where the only way was to sell prints and merchandising...
- A musician can sell an NFT for his special special song.
- A video game designer can use an NFT to give access to rare or special items in his game, or even have his entire game produce NFTs, which are the items your character can wear in the game.
In fact, NFTs can even be used for more practical things, like proving you own a house or a car. in real life as in a video game or even to give access to exclusive events as a member card (as long as the authorities have accepted this modality).
The idea behind NFTs is to enable creators and artists to have control over their work and be rewarded for their creations. It's also a way of making digital objects more special and giving them real value, just like objects you can touch in the real world.
L
he advantages of NFTs
Authenticité et propriété numérique
When you purchase an NFT, you acquire a unique digital asset, of which you are the the undisputed owner. No one can remove or modify it without your consent. They offer proof of ownership and authenticity, enabling creators to prove the originality and rarity of their works.
Décentralisation & interopérabilité
The blockchain, used to record NFT transactions, operates on a decentralized basis. No private company controls the management of NFTs, thus guaranteeing their integrity and traceability.
NFTs are designed to be compatible with different markets and platforms, facilitating the exchange and portability of digital assets .
Créateurs rémunérés
NFTs open up new opportunities for artists and creators to interact directly with their audiences and collectors. This creates a closer, more personalized relationship with their community.
Mécanismes de redevances
Digital artists and creators can finally be fairly rewarded for their work. Thanks to NFTs sales, they can benefit from an income directly linked to their digital art, without depending on a third-party platform. Compared to a painter who can sell his paintings directly.
Propriété fractionnée
NFTs enable fractional ownership of digital assets, meaning thata single asset can be divided into smaller shares and shared between several owners, opening up new investment opportunities.
L
he disadvantages of NFTs
Manque de régulation
As a relatively new and rapidly evolving field,
NFTs face a lack of clear regulation.
This can create an environment ripe for scams and fraudulent practices.
But this has improved with
the new European MiCA directive
Bulle spéculative
Like any new technology, NFTs can be subject to speculative bubbles, where digital asset prices prices of digital assets can soar artificially before collapsing rapidly, resulting in significant financial losses for some investors.
Escroqueries et fraude
Although NFTs are supposed to represent unique and authenticated assets, it is always
always possible for malicious individuals to
creating counterfeits or pirating digital works, which calls into question the true value of NFTs. Not to mention fraudulent projects, as they may find it difficult to discern legitimate projects from scams.
In general,
when it's too good to be true, pay close attention
. Even if it's touted by many influencers. They don't have to take any risks, because they receive promotional gifts upstream.
Volatilité du marché
As with any financial asset
the NFT market is subject to significant price fluctuations
This can lead to considerable gains or losses for investors, depending on market conditions.
Sometimes you can get NFTs for free, in which case your risk of loss is zero.
Incompréhension du marché
A lack of market understanding can make it difficult to assess the true value of NFTs.
Without proper analysis, investors could
overpay for digital assets that are not worth their real price
and can lead to inappropriate investment choices, where investors may purchase NFTs that
have no real demand or use,
resulting in financial losses.