View source for Finance:Non-fungible token

{{Short description|Unique and non-interchangeable data}}
{{pp-semi-indef|small=yes}}

[[File:NFT diagram.svg|thumb|upright=1.35|Illustration of a non-fungible token generated by a smart contract (a program designed to automatically execute contract terms)]]
A '''non-fungible token''' ('''NFT''') is a unique digital identifier that is recorded on a [[Finance:Blockchain|blockchain]] and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided.<ref>{{Cite web |title=Definition of NFT |date=July 20, 2023 |url=https://www.merriam-webster.com/dictionary/NFT}}</ref> The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody and require few or no coding skills to create. NFTs typically contain references to digital files such as artworks, photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible.

Proponents claim that NFTs provide a public [[Certificate of authenticity|certificate of authenticity]] or [[Social:Title (property)|proof of ownership]], but the legal rights conveyed by an NFT can be uncertain. The ownership of an NFT as defined by the blockchain has no inherent legal meaning and does not necessarily grant [[Copyright|copyright]], [[Social:Intellectual property|intellectual property]] rights, or other legal rights over its associated digital file. An NFT does not restrict the sharing or copying of its associated digital file and does not prevent the creation of NFTs that reference identical files.

The trading of NFTs in 2021 increased to $17&nbsp;billion over just $82&nbsp;million in the previous year.<ref>{{Cite web |date=March 10, 2022 |title=NFTs Hit $17B In Trading in 2021, Up 21,000% |url=https://www.pymnts.com/nfts/2022/nfts-hit-17b-in-trading-in-2021-up-21000/ |access-date=May 5, 2022 |website=pymnts.com |language=en-US}}</ref> NFTs have been used as [[Finance:Speculation|speculative]] investments and they have drawn criticism for the energy cost and [[Earth:Carbon footprint|carbon footprint]] associated with some types of blockchain, as well as their use in art scams.<ref>{{Cite web |last=Genç |first=Ekin |date=October 5, 2021 |title=Investors Spent Millions on 'Evolved Apes' NFTs. Then They Got Scammed. |url=https://www.vice.com/en/article/y3dyem/investors-spent-millions-on-evolved-apes-nfts-then-they-got-scammed |access-date=November 9, 2021 |website=[[Company:Vice Media|Vice Media]]}}</ref> The NFT market has also been compared to an [[Finance:Economic bubble|economic bubble]] or a Ponzi scheme.<ref>{{Cite news |last=Hawkins |first=John |date=January 13, 2022 |title=NFTs, an overblown speculative bubble inflated by pop culture and crypto mania |work=The Conversation |url=https://theconversation.com/amp/nfts-an-overblown-speculative-bubble-inflated-by-pop-culture-and-crypto-mania-174462 |access-date=May 7, 2022}}</ref> During their peak, the three biggest NFT platforms were [[Finance:Ethereum|Ethereum]], [[Finance:Solana (blockchain platform)|Solana]], and [[Cardano (blockchain platform)|Cardano]].<ref>{{Cite web |last=Linares |first=Maria Gracia Santillana |title=Cardano NFTs Becomes Third-Largest NFT Protocol By Trading Volume |url=https://www.forbes.com/sites/mariagraciasantillanalinares/2022/10/29/cardano-nfts-becomes-third-largest-nft-protocol-by-trading-volume/ |access-date=2023-04-25 |website=Forbes |language=en}}</ref> In 2022, the NFT market collapsed; a May 2022 estimate was that the number of sales was down over 90% compared to 2021.<ref name="flatlining" /> By September 2023, one report claimed that over 95% of NFT collections had zero monetary value.<ref name="Yang2023">{{cite news |last1=Yang |first1=Maya |title=The vast majority of NFTs are now worthless, new report shows |url=https://www.theguardian.com/technology/2023/sep/22/nfts-worthless-price |access-date=26 September 2023 |work=The Guardian |date=22 September 2023}}</ref><ref name="Vigliarolo2023">{{cite news |last1=Vigliarolo |first1=Brandon |title=95% of NFTs now totally worthless, say researchers |url=https://www.theregister.com/2023/09/21/95_percent_nfts_worthless/ |access-date=26 September 2023 |work=theregister.com |date=21 September 2023 |language=en}}</ref>

==Characteristics==
An NFT is a data file, stored on a type of digital ledger called a blockchain, which can be sold and traded.<ref>{{Cite journal |last1=Wilson |first1=Kathleen Bridget |last2=Karg |first2=Adam |last3=Ghaderi |first3=Hadi |date=October 2021 |title=Prospecting non-fungible tokens in the digital economy: Stakeholders and ecosystem, risk and opportunity |journal=Business Horizons |volume=65 |issue=5 |pages=657–670 |doi=10.1016/j.bushor.2021.10.007 |s2cid=240241342|url=https://repositorio.unal.edu.co/handle/unal/81769 }}</ref> The NFT can be associated with a particular asset – digital or physical – such as an image, art, music, or recording of a sports event.<ref>{{Cite web |last=Mayor |first=Daniel |date=April 4, 2022 |title=NFTs and the Legitimizing Power of Copyright |url=https://lawreview.law.miami.edu/nfts-legitimizing-power-copyright/}}</ref> It may confer licensing rights to use the asset for a specified purpose.<ref name="$69 million for digital art?">{{Cite news |last=Dean |first=Sam |date=March 11, 2021 |title=$69&nbsp;million for digital art? The NFT craze, explained |work=Los Angeles Times |url=https://www.latimes.com/business/technology/story/2021-03-11/nft-explainer-crypto-trading-collectible |access-date=March 12, 2021}}</ref> An NFT (and, if applicable, the associated license to use, copy, or display the underlying asset) can be traded and sold on digital markets.<ref name="Kastrenakes">{{Cite web |last=Kastrenakes |first=Jacob |date=March 11, 2021 |title=Beeple sold an NFT for $69&nbsp;million |url=https://www.theverge.com/2021/3/11/22325054/beeple-christies-nft-sale-cost-everydays-69-million |archive-url=https://web.archive.org/web/20210321215043/https://www.theverge.com/2021/3/11/22325054/beeple-christies-nft-sale-cost-everydays-69-million |archive-date=March 21, 2021 |access-date=March 21, 2021 |website=[[The Verge]]}}</ref> However, the extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement,<ref name="Mendis-2021">{{Cite web |last=Mendis |first=Dinusha |date=August 24, 2021 |title=When you buy an NFT, you don't completely own it – here's why |url=http://theconversation.com/when-you-buy-an-nft-you-dont-completely-own-it-heres-why-166445 |access-date=November 23, 2021 |website=The Conversation |language=en}}</ref> and so often confers little more than use as a status symbol.<ref name="vice right-clicker" />

NFTs function like [[Cryptography|cryptographic]] tokens, but unlike cryptocurrencies, NFTs are not usually mutually interchangeable, so they are not fungible.{{efn|While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value.<ref>{{Cite magazine |title=WTF Is an NFT, Anyway? And Should I Care? |language=en-us |magazine=Wired |url=https://www.wired.com/story/gadget-lab-podcast-495/ |access-date=March 13, 2021 |issn=1059-1028}}</ref>}} A non-fungible token contains data links, for example which point to details about where the associated art is stored, that can be affected by [[Link rot|link rot]].<ref>{{Cite news |last=Kastrenakes |first=Jacob |date=March 25, 2021 |title=Your Million-Dollar NFT Can Break Tomorrow If You're Not Careful |work=The Verge |url=https://www.theverge.com/2021/3/25/22349242/nft-metadata-explained-art-crypto-urls-links-ipfs |access-date=March 31, 2021}}</ref>

===Copyright===
[[File:NFT ownership diagram.svg|thumb|upright=1.35|alt=NFT is ownable, the asset link may be ownable, and the ownership of the asset is not guaranteed|A diagram showing the right to own a non-fungible token and linked file. In most cases, it is heavily dependent on the token's smart contract.]]
An NFT solely represents a proof of ownership of a blockchain record and does not necessarily imply that the owner possesses [[Social:Intellectual property|intellectual property]] rights to the digital asset the NFT purports to represent.<ref>{{Cite news |last=Gallagher |first=Jacob |date=March 15, 2021 |title=NFTs Are the Biggest Internet Craze. Do They Work for Sneakers? |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/nfts-and-fashion-collectors-pay-big-money-for-virtual-sneakers-11615829266 |access-date=June 26, 2021 |issn=0099-9660}}</ref><ref name="Thaddeus-Johns-2021">{{Cite news |last=Thaddeus-Johns |first=Josie |date=March 11, 2021 |title=What Are NFTs, Anyway? One Just Sold for $69 Million. |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/03/11/arts/design/what-is-an-nft.html |access-date=June 26, 2021 |issn=0362-4331}}</ref><ref>{{Cite news |date=March 3, 2021 |title=NFT blockchain drives surge in digital art auctions |publisher=BBC |url=https://www.bbc.com/news/technology-56252738 |access-date=March 12, 2021}}</ref> Someone may sell an NFT that represents their work, but the buyer will not necessarily receive copyright to that work, and the seller may not be prohibited from creating additional NFT copies of the same work.<ref>{{Cite news |last=Salmon |first=Felix |date=March 12, 2021 |title=How to exhibit your very own $69&nbsp;million Beeple |work=Axios |url=https://www.axios.com/beeple-crypto-nft-art-a4c631d1-d173-46a5-b514-9732b2fcecaf.html |access-date=March 13, 2021}}</ref><ref name="Clark-2021">{{Cite news |last=Clark |first=Mitchell |date=March 11, 2021 |title=NFTs, explained |work=The Verge |url=https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq |access-date=March 11, 2021}}</ref> According to legal scholar Rebecca Tushnet, "In one sense, the purchaser acquires whatever the art world thinks they have acquired. They definitely do not own the copyright to the underlying work unless it is explicitly transferred."<ref>{{Cite web |last=Majocha |first=Courtney |title=Memes for Sale? Making sense of NFTs |url=https://today.law.harvard.edu/memes-for-sale-making-sense-of-nfts/ |access-date=June 26, 2021 |website=Harvard Law Today}}</ref>

Certain NFT projects, such as Bored Apes, explicitly assign intellectual property rights of individual images to their respective owners.<ref>{{Cite web |last=Ifeanyi |first=K. C. |date=January 18, 2022 |title=The Bored Ape Yacht Club apes into Hollywood |url=https://www.fastcompany.com/90706534/the-bored-ape-yacht-club-apes-into-hollywood |access-date=July 19, 2022 |website=Fast Company |language=en-US}}</ref> The NFT collection CryptoPunks was a project that initially prohibited owners of its NFTs from using the associated digital artwork for commercial use, but later allowed such use upon acquisition by the collection's parent company.<ref>{{Cite web |last=Kastrenakes |first=Jacob |date=March 11, 2022 |title=Bored Ape Yacht Club creator buys CryptoPunks and Meebits |url=https://www.theverge.com/2022/3/11/22973394/bored-ape-yacht-club-cryptopunks-meebits-nft |access-date=July 19, 2022 |website=The Verge |language=en}}</ref>

==History==

=== Early projects ===
The first known "NFT", ''Quantum'',<ref>{{Cite web |last=Cascone |first=Sarah |date=May 7, 2021 |title=Sotheby's Is Selling the First NFT Ever Minted – and Bidding Starts at $100 |url=https://news.artnet.com/market/sothebys-is-hosting-its-first-curated-nft-sale-featuring-the-very-first-nft-ever-minted-1966003 |access-date=November 12, 2021 |website=Artnet News |language=en-US}}</ref> was created by Kevin McCoy and Anil Dash in May 2014. It consists of a video clip made by McCoy's wife, Jennifer. McCoy registered the video on the [[Namecoin]] blockchain and sold it to Dash for $4, during a live presentation for the ''Seven on Seven'' conferences at the New Museum in New York City. McCoy and Dash referred to the technology as "monetized graphics".<ref name="dash2">{{Cite web |last=Dash |first=Anil |date=April 2, 2021 |title=NFTs Weren't Supposed to End Like This |url=https://www.theatlantic.com/ideas/archive/2021/04/nfts-werent-supposed-end-like/618488/ |access-date=May 5, 2021 |website=The Atlantic |language=en}}</ref> This explicitly linked a non-fungible, tradable blockchain marker to a work of art, via on-chain metadata (enabled by Namecoin).<ref>{{Cite news |last=Ostroff |first=Caitlin |date=May 8, 2021 |title=The NFT Origin Story, Starring Digital Cats |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/the-nft-origin-story-starring-digital-cats-11620446425 |access-date=December 12, 2021 |issn=0099-9660}}</ref>

In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1 in London, Ethereum's first developer conference, three months after the launch of the [[Finance:Ethereum|Ethereum]] blockchain. Most of Etheria's 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13, 2021, when renewed interest in NFTs sparked a buying frenzy. Within 24 hours, all tiles of the current version and a prior version, each hardcoded to 1 ETH ({{Currency|0.43|US}} at the time of launch), were sold for a total of {{Currency|1.4|US}} million.<ref>{{Cite web |date=April 8, 2021 |title=The Cult of CryptoPunks |url=https://social.techcrunch.com/2021/04/08/the-cult-of-cryptopunks/ |access-date=May 5, 2021 |website=TechCrunch |language=en-US |archive-date=May 6, 2021 |archive-url=https://web.archive.org/web/20210506142353/https://techcrunch.com/2021/04/08/the-cult-of-cryptopunks/ |url-status=dead }}</ref>

In 2016, ''Rare Pepes'' a "semi-fungible" NFT project centered around the [[Social:Pepe the Frog|Pepe the Frog meme]] involving a collective of artists contributing their works into a curated directory, emerged on Bitcoin through a protocol known as [[Software:Counterparty (platform)|Counterparty]] (which had been created in 2014 and used to create other assets).<ref>
* {{Cite web |last=Faife |first=Corin |date=2017-01-27 |title=Meme Collectors Are Using the Blockchain to Keep Rare Pepes Rare |url=https://www.vice.com/en/article/aejvdb/collectors-are-using-the-blockchain-to-keep-rare-pepes-rare |access-date=2023-11-28 |website=Vice |language=en}}
* {{Cite news |last=Ostroff |first=Caitlin |date=2021-05-08 |title=The NFT Origin Story, Starring Digital Cats |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/the-nft-origin-story-starring-digital-cats-11620446425 |access-date=2023-11-28 |issn=0099-9660}}
* {{Cite news |last1=Casey |first1=Michael J. |last2=Vigna |first2=Paul |date=2014-11-12 |title=BitBeat: Bitcoin 2.0 Firm Counterparty Adopts Ethereum's Software |language=en-US |work=Wall Street Journal |url=http://blogs.wsj.com/moneybeat/2014/11/12/bitbeat-bitcoin-2-0-firm-counterparty-adopts-ethereums-software/ |access-date=2023-11-28 |issn=0099-9660}}
* {{Cite web |title=ERC-721: Non-Fungible Token Standard |url=https://eips.ethereum.org/EIPS/eip-721 |access-date=2023-11-28 |website=Ethereum Improvement Proposals |language=en}}</ref>

In 2017, several NFT projects emerged on Ethereum that utilized a "fungible" token standard known as ERC-20. ''Curio Cards'' in May of that year is credited with being Ethereum's first art NFT project using the fungible standard and features artwork in the shape of a card among a variety of image types including satirized corporate logos<ref>
* {{Cite web |last=León |first=Riley de |date=2021-10-01 |title=Doodles used to create Gary Vaynerchuk NFT collection sell for $1.2 million in Christie's auction |url=https://www.cnbc.com/2021/10/01/christies-auctioned-gary-vaynerchuks-nft-art-for-1point2-million.html |access-date=2023-11-28 |website=CNBC |language=en}}
* {{Cite web |date=2021-09-21 |title=Christie's Is Now Accepting Ether in Exchange for Ethereum's Earliest NFTs |url=https://observer.com/2021/09/christies-is-now-accepting-ether-in-exchange-for-ethereums-earliest-nfts/ |access-date=2023-11-28 |website=Observer |language=en-US}}
* {{Cite web |date=2021-09-21 |title=Christie's Is Now Accepting Ether in Exchange for Ethereum's Earliest NFTs |url=https://observer.com/2021/09/christies-is-now-accepting-ether-in-exchange-for-ethereums-earliest-nfts/ |access-date=2023-11-28 |website=Observer |language=en-US}}</ref> The generative art project of 10,000 pixelated characters known as ''CryptoPunks'' emerged soon after in June and would later establish itself as one of the most commercially successful NFT projects.<ref>
* {{Cite web |last=Matney |first=Lucas |date=2021-04-08 |title=The Cult of CryptoPunks |url=https://techcrunch.com/2021/04/08/the-cult-of-cryptopunks/ |access-date=2023-11-28 |website=TechCrunch |language=en-US}}
* {{Cite web |last=Linares |first=Maria Gracia Santillana |title=Crypto Punk Mania: The Top 10 NFT Collections Of 2022 |url=https://www.forbes.com/sites/mariagraciasantillanalinares/2023/01/11/crypto-punk-mania-the-top-10-nft-collections-of-2022/ |access-date=2023-11-28 |website=Forbes |language=en}}</ref> In December, a clipart based collection featuring images of rocks called ''EtherRock'' emerged.<ref>
* {{Cite web |title=EtherRock NFTs are now worth millions, but are they the originals? |url=https://fortune.com/2021/08/27/etherrock-nfts-worth-millions/ |access-date=2023-11-28 |website=Fortune |language=en}}
* {{Cite web |last=Gottsegen |first=Will |date=2021-08-17 |title=Free Clipart of a Cartoon Rock Is Selling for $300,000 as NFTs |url=https://www.vice.com/en/article/jg84pg/free-clipart-of-a-cartoon-rock-is-selling-for-dollar300000-as-nfts |access-date=2023-11-28 |website=Vice |language=en}}</ref>

in November of 2017, the widely acclaimed [[Finance:Blockchain game|blockchain game]] on Ethereum known as ''[[Software:CryptoKitties|CryptoKitties]]'' launched and is credited with pioneering what is considered to be the very first bona fide non-fungible token standard, known as ERC-721.<ref>
* {{Cite journal |last1=Bamakan |first1=Seyed Mojtaba Hosseini |last2=Nezhadsistani |first2=Nasim |last3=Bodaghi |first3=Omid |last4=Qu |first4=Qiang |date=2022-02-09 |title=Patents and intellectual property assets as non-fungible tokens; key technologies and challenges |journal=Scientific Reports |volume=12 |issue=1 |pages=2178 |doi=10.1038/s41598-022-05920-6 |pmid=35140251 |pmc=8828876 |arxiv=2304.10490 |bibcode=2022NatSR..12.2178B |issn=2045-2322 }}
* {{Cite journal |last1=Nadini |first1=Matthieu |last2=Alessandretti |first2=Laura |last3=Di Giacinto |first3=Flavio |last4=Martino |first4=Mauro |last5=Aiello |first5=Luca Maria |last6=Baronchelli |first6=Andrea |date=2021-10-22 |title=Mapping the NFT revolution: market trends, trade networks, and visual features |journal=Scientific Reports |volume=11 |issue=1 |pages=20902 |doi=10.1038/s41598-021-00053-8 |pmid=34686678 |pmc=8536724 |arxiv=2106.00647 |bibcode=2021NatSR..1120902N |s2cid=235266255 |issn=2045-2322 }}
* {{Cite web |last=Schroeder |first=Stan |date=2017-12-04 |title=How to play CryptoKitties, the insanely popular crypto game |publisher=Mashable |url=https://mashable.com/article/how-to-play-cryptokitties |access-date=2023-11-21}}
</ref> It used an early version of ERC-721 that differed from the formally published version of the standard in 2018.<ref>{{cite web
|last1=Vereš
|first1=Igor
|title=Identification of Unusual Transactions in Blockchain Networks
|url=https://www.researchgate.net/profile/Igor-Veres/publication/333774473_Identification_of_unusual_transactions_in_blockchain_networks/links/5d034f8f4585157d15a95c4a/Identification-of-unusual-transactions-in-blockchain-networks.pdf
|publisher=[[Organization:Slovak University of Technology in Bratislava|Slovak University of Technology in Bratislava]], Informatics and Information Technologies
|date=April 2019
}}</ref>

=== ''ERC-721: Non-Fungible Token Standard'' ===
While experiments around non-fungibility have existed on blockchains since as early as 2012 with [[Software:Colored Coins|Colored Coins]] on Bitcoin,<ref>{{Citation |last1=Regner |first1=Ferdinand |title=Utilizing Non-fungible Tokens for an Event Ticketing System |date=2022 |url=https://doi.org/10.1007/978-3-030-95108-5_12 |work=Blockchains and the Token Economy: Theory and Practice |pages=315–343 |editor-last=Lacity |editor-first=Mary C. |access-date=2023-11-25 |series=Technology, Work and Globalization |place=Cham |publisher=Springer International Publishing |language=en |doi=10.1007/978-3-030-95108-5_12 |isbn=978-3-030-95108-5 |last2=Schweizer |first2=André |last3=Urbach |first3=Nils |editor2-last=Treiblmaier |editor2-first=Horst}}</ref> a community-driven paper called ''ERC-721: Non-Fungible Token Standard'' was published in 2018 under the initiative of [[Hacker#Civic hacker|civic hacker]] and lead author William Entriken<ref> 
* {{Cite web |last=Sherwood |first=Sonja |title=40 under 40 - William Entriken |url=https://drexelmagazine.org/2022/william-entriken/ |access-date=2023-11-20}} 
* {{Cite web |last=Butler |first=Michael |date=2021-06-03 |title=This local technologist made Philly the birthplace of the leading NFT standard |url=https://technical.ly/software-development/nft-william-entriken-standard/ |access-date=2023-12-02 |website=Technical.ly |language=en}}</ref> and is recognized as pioneering the foundation for NFTs and enabling the growth of the wider eco-system.<ref> 
* {{Cite book |last1=Regner |first1=Ferdinand |last2=Schweizer |first2=André |last3=Urbach |first3=Nils |title=Blockchains and the Token Economy |chapter=Utilizing Non-fungible Tokens for an Event Ticketing System |series=Technology, Work and Globalization |date=2022 |url=https://dx.doi.org/10.1007/978-3-030-95108-5_12 |publisher=Springer International Publishing |pages=315–343 |doi=10.1007/978-3-030-95108-5_12 |isbn=978-3-030-95107-8 |access-date=2023-11-20}}
* {{Cite journal |title=An In-depth Insight at Digital Ownership Through Dynamic NFTs |journal=Procedia Computer Science |volume=214 |pages=875–882 |date=2022-01-01 |doi=10.1016/j.procs.2022.11.254 |issn=1877-0509 |url=https://www.sciencedirect.com/science/article/pii/S1877050922019640 |last1=Solouki |first1=Mohammadsadegh |last2=Bamakan |first2=Seyed Mojtaba Hosseini |s2cid=254484607 |doi-access=free }}</ref> It introduced the formalization and defining of the term ''Non-Fungible Token'' "NFT" in blockchain nomenclature by establishing a standard for [[Finance:Smart contract|smart contracts]] known as "ERC-721" whose tokens would have unique attributes and ownership details, ensuring no two tokens are alike.<ref>
* {{Cite news |last=Zimmer |first=Ben |date=2021-04-16 |title='Fungible': The Idea in the Middle of the NFT Sensation |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/fungible-the-idea-in-the-middle-of-the-nft-sensation-11618595061 |access-date=2023-11-25 |issn=0099-9660}}
* {{Cite news |last=Ostroff |first=Caitlin |date=2021-05-08 |title=The NFT Origin Story, Starring Digital Cats |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/the-nft-origin-story-starring-digital-cats-11620446425 |access-date=2023-11-25 |issn=0099-9660}}
* {{Cite journal |last1=Arcenegui |first1=Javier |last2=Arjona |first2=Rosario |last3=Baturone |first3=Iluminada |date=2023-07-31 |title=Non-Fungible Tokens Based on ERC-4519 for the Rental of Smart Homes |journal=Sensors |volume=23 |issue=16 |pages=7101 |doi=10.3390/s23167101 |pmid=37631638 |pmc=10459112 |bibcode=2023Senso..23.7101A |issn=1424-8220 |doi-access=free }}
* {{Cite journal |title=An In-depth Insight at Digital Ownership Through Dynamic NFTs |journal=Procedia Computer Science |volume=214 |pages=875–882 |date=2022-01-01 |doi=10.1016/j.procs.2022.11.254 |issn=1877-0509 |url=https://www.sciencedirect.com/science/article/pii/S1877050922019640 |last1=Solouki |first1=Mohammadsadegh |last2=Bamakan |first2=Seyed Mojtaba Hosseini |s2cid=254484607 |doi-access=free }}
* {{Cite journal |last1=Ali |first1=Omar |last2=Momin |first2=Mujtaba |last3=Shrestha |first3=Anup |last4=Das |first4=Ronnie |last5=Alhajj |first5=Fadia |last6=Dwivedi |first6=Yogesh K. |date=2023-02-01 |title=A review of the key challenges of non-fungible tokens |journal=Technological Forecasting and Social Change |volume=187 |pages=122248 |doi=10.1016/j.techfore.2022.122248 |s2cid=254394090 |issn=0040-1625 |url=https://www.sciencedirect.com/science/article/pii/S0040162522007697|doi-access=free }}
</ref> The creation of derivative standards followed from its influence on Ethereum (like ERC-1155 enabling semi-fungibility) and other blockchains.<ref>
* {{Cite journal |last1=Bamakan |first1=Seyed Mojtaba Hosseini |last2=Nezhadsistani |first2=Nasim |last3=Bodaghi |first3=Omid |last4=Qu |first4=Qiang |date=2022-02-09 |title=Patents and intellectual property assets as non-fungible tokens; key technologies and challenges |journal=Scientific Reports |volume=12 |issue=1 |pages=2178 |doi=10.1038/s41598-022-05920-6 |pmid=35140251 |pmc=8828876 |arxiv=2304.10490 |bibcode=2022NatSR..12.2178B |s2cid=246700675 |issn=2045-2322 }}
* {{Cite journal |title=An In-depth Insight at Digital Ownership Through Dynamic NFTs |journal=Procedia Computer Science |volume=214 |pages=875–882 |date=2022-01-01 |doi=10.1016/j.procs.2022.11.254 |issn=1877-0509 |url=https://www.sciencedirect.com/science/article/pii/S1877050922019640 |access-date=2023-11-25 |last1=Solouki |first1=Mohammadsadegh |last2=Bamakan |first2=Seyed Mojtaba Hosseini |s2cid=254484607 |doi-access=free }}
* {{Cite journal |last1=Ali |first1=Omar |last2=Momin |first2=Mujtaba |last3=Shrestha |first3=Anup |last4=Das |first4=Ronnie |last5=Alhajj |first5=Fadia |last6=Dwivedi |first6=Yogesh K. |date=2023-02-01 |title=A review of the key challenges of non-fungible tokens |journal=Technological Forecasting and Social Change |volume=187 |pages=122248 |doi=10.1016/j.techfore.2022.122248 |s2cid=254394090 |issn=0040-1625 |url=https://www.sciencedirect.com/science/article/pii/S0040162522007697 |access-date=2023-11-25|doi-access=free }}
</ref> Its versatility enabled the pioneering of numerous use cases, including digital artwork, deeds to physical items, real estate (including virtual), access passes, and game assets.<ref>
* {{Cite book |last1=Regner |first1=Ferdinand |last2=Schweizer |first2=André |last3=Urbach |first3=Nils |title=Blockchains and the Token Economy |chapter=Utilizing Non-fungible Tokens for an Event Ticketing System |series=Technology, Work and Globalization |date=2022 |url=https://dx.doi.org/10.1007/978-3-030-95108-5_12 |publisher=Springer International Publishing |pages=315–343 |doi=10.1007/978-3-030-95108-5_12 |isbn=978-3-030-95107-8 |access-date=2023-11-20}}
* {{Cite journal |last1=Bamakan |first1=Seyed Mojtaba Hosseini |last2=Nezhadsistani |first2=Nasim |last3=Bodaghi |first3=Omid |last4=Qu |first4=Qiang |date=2022-02-09 |title=Patents and intellectual property assets as non-fungible tokens; key technologies and challenges |journal=Scientific Reports |volume=12 |issue=1 |pages=2178 |doi=10.1038/s41598-022-05920-6 |pmid=35140251 |pmc=8828876 |arxiv=2304.10490 |bibcode=2022NatSR..12.2178B |issn=2045-2322 }}
*{{Cite journal |last1=Arcenegui |first1=Javier |last2=Arjona |first2=Rosario |last3=Baturone |first3=Iluminada |date=2023-07-31 |title=Non-Fungible Tokens Based on ERC-4519 for the Rental of Smart Homes |journal=Sensors |volume=23 |issue=16 |pages=7101 |doi=10.3390/s23167101 |pmid=37631638 |pmc=10459112 |bibcode=2023Senso..23.7101A |issn=1424-8220 |doi-access=free }}
*{{Cite journal |title=An In-depth Insight at Digital Ownership Through Dynamic NFTs |journal=Procedia Computer Science |volume=214 |pages=875–882 |date=2022-01-01 |doi=10.1016/j.procs.2022.11.254 |issn=1877-0509 |url=https://www.sciencedirect.com/science/article/pii/S1877050922019640 |last1=Solouki |first1=Mohammadsadegh |last2=Bamakan |first2=Seyed Mojtaba Hosseini |s2cid=254484607 |doi-access=free }}
*{{Cite journal |last=Mohammed |first=Madine |date=2022-09-05 |title=Blockchain and NFTs for Time-Bound Access and Monetization of Private Data |url=https://ieeexplore.ieee.org/document/9877874 |access-date=2023-11-20 |journal=IEEE Access |volume=10 |pages=94186–94202 |doi=10.1109/ACCESS.2022.3204274 |bibcode=2022IEEEA..1094186M |s2cid=252094824 |language=en|doi-access=free }}
* {{Cite web |last=Karayaneva |first=Natalia |title=NFTs Work For Digital Art. They Also Work Perfectly For Real Estate. |url=https://www.forbes.com/sites/nataliakarayaneva/2021/04/08/nfts-work-for-digital-art-they-also-work-perfectly-for-real-estate/ |access-date=2023-12-02 |website=Forbes |language=en}}
* {{Cite web |title=NFT Certificates and Proof of Delivery for Fine Jewelry and Gemstones {{!}} IEEE Journals & Magazine {{!}} IEEE Xplore |url=https://ieeexplore.ieee.org/document/9899445 |access-date=2023-12-02 |doi=10.1109/ACCESS.2022.3208698 |s2cid=252485842 }}</ref> Ultimately, the emergence of ERC-721 is recognized for having fundamentally changed the landscape of digital verification, authentication, and ownership.<ref>
* {{Cite web |title=A Review on Blockchain Applications in Fintech Ecosystem {{!}} IEEE Conference Publication {{!}} IEEE Xplore |url=https://ieeexplore.ieee.org/document/10054910 |access-date=2023-11-25 |doi=10.1109/ICACNIS57039.2022.10054910 |s2cid=257313812 }}
* {{Cite journal |last=Chandra |first=Yanto |date=2022-11-01 |title=Non-fungible token-enabled entrepreneurship: A conceptual framework |url=https://www.sciencedirect.com/science/article/pii/S235267342200021X |journal=Journal of Business Venturing Insights |volume=18 |pages=e00323 |doi=10.1016/j.jbvi.2022.e00323 |s2cid=248958972 |issn=2352-6734|doi-access=free }}
* {{Cite journal |last1=Ali |first1=Omar |last2=Momin |first2=Mujtaba |last3=Shrestha |first3=Anup |last4=Das |first4=Ronnie |last5=Alhajj |first5=Fadia |last6=Dwivedi |first6=Yogesh K. |date=2023-02-01 |title=A review of the key challenges of non-fungible tokens |url=https://www.sciencedirect.com/science/article/pii/S0040162522007697 |journal=Technological Forecasting and Social Change |volume=187 |pages=122248 |doi=10.1016/j.techfore.2022.122248 |s2cid=254394090 |issn=0040-1625|doi-access=free }}
</ref>

==== Origins of the term "NFT" and its adoption ====
The term NFT, prior to the blockchain game ''[[Software:CryptoKitties|CryptoKitties'<nowiki/>]]'' adoption of ERC-721, is not known to have been used for earlier projects.<ref name=":0">
* {{Cite news |last=Zimmer |first=Ben |date=2021-04-16 |title='Fungible': The Idea in the Middle of the NFT Sensation |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/fungible-the-idea-in-the-middle-of-the-nft-sensation-11618595061 |access-date=2023-11-28 |issn=0099-9660}}
* {{Cite magazine |last=Upson |first=Sandra |title=The 10,000 Faces That Launched an NFT Revolution |language=en-US |magazine=Wired |url=https://www.wired.com/story/the-10000-faces-that-launched-an-nft-revolution/ |access-date=2023-12-03 |issn=1059-1028}}</ref> Through discussion among stakeholders for the ERC-721 draft, the word ''deed'' was given consideration among other alternatives including ''distinguishable asset, title, token, asset, equity, ticket.''<ref name=":1">{{Cite web |title=ERC-721: Non-Fungible Token Standard |url=https://eips.ethereum.org/EIPS/eip-721 |access-date=2023-11-28 |website=Ethereum Improvement Proposals |language=en}}</ref> Ultimately, through Entriken's initiative under the moniker "Fulldecent," a vote was held during the paper's drafting phase to decide which word would be used in the published version and "NFT" was chosen by the stakeholders.<ref>
* {{Cite book |last1=Ross |first1=Dian |last2=Cretu |first2=Edmond |last3=Lemieux |first3=Victoria |chapter=NFTS: Tulip Mania or Digital Renaissance? |date=2021-12-15 |pages=2262–2272 |title=2021 IEEE International Conference on Big Data (Big Data) |chapter-url=http://dx.doi.org/10.1109/bigdata52589.2021.9671707 |publisher=IEEE |doi=10.1109/bigdata52589.2021.9671707|isbn=978-1-6654-3902-2 |s2cid=245956102 }}
* {{Cite web |title=Reconsider the word "deed" by fulldecent · Pull Request #2 · fulldecent/EIPs |url=https://github.com/fulldecent/EIPs/pull/2 |access-date=2023-11-28 |website=GitHub |language=en}}</ref>

The term "NFT" and the awareness of the ERC-721 standard received significant exposure and adopted use through the popularity of ''CryptoKitties'' in 2017.<ref name=":0" /> While using the standard, ''CryptoKitties'' earned the recognition of being the first mainstream NFT dApp;<ref>{{Cite web |last=Urbach |first=Nils |date=December 13, 2019 |title=NFTs in Practice – Non-Fungible Tokens as Core Component of a Blockchain-based Event Ticketing Application |url=https://www.fim-rc.de/Paperbibliothek/Veroeffentlicht/1045/wi-1045.pdf |access-date=October 28, 2021 |website=Fraunhofer Research Center, Finance and Information Management}}</ref> the game's usage was significant enough to have overwhelmed Ethereum's processing power at the time.<ref>{{Cite news |date=2017-12-04 |title=CryptoKitties Mania Overwhelms Ethereum Network's Processing |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2017-12-04/cryptokitties-quickly-becomes-most-widely-used-ethereum-app |access-date=2023-11-28}}</ref>

==== Influence ====
During the height of the breakout success of ''CryptoKitties'' and the emergence of ERC-721 tokens in 2017, an NFT marketplace called OpenSea emerged to capitalize off of the new non-fungible token standard.<ref>{{Cite web |last=Brandom |first=Russell |date=2022-02-02 |title=How one company took over the NFT trade |url=https://www.theverge.com/2022/2/2/22914081/open-sea-nft-marketplace-web3-fundraising-finzer-a16z |access-date=2023-11-28 |website=The Verge |language=en}}</ref> It positioned itself early in the NFT market landscape and grew to a $1.4 billion market cap in 2021 during the NFT boom in 2021.<ref>{{Cite web |last=Matney |first=Lucas |date=2021-07-20 |title=NFT market OpenSea hits $1.5 billion valuation |url=https://techcrunch.com/2021/07/20/nft-market-opensea-hits-1-5-billion-valuation/ |access-date=2023-11-28 |website=TechCrunch |language=en-US}}</ref>

in 2021, ''ArtReview's Power 100'' ranked ERC-721 at the #1 spot, praising it as "the most powerful art entity in the world" for creating a new kind of market for artworks that deviated from traditional gatekeeping norms and ushered in a different kind of collector.<ref>
* {{Cite web |last= |first= |date=2021-12-01 |title=NFTs are most influential in contemporary art power list |publisher=cnbctv18.com |url=https://www.cnbctv18.com/business/nfts-are-most-influential-in-contemporary-art-power-list-11663702.htm |access-date=2023-11-22}}
* {{Cite web |last= |first= |date=2021-12-01 |title=ArtReview Has Released the 2021 Power 100 |publisher=Hypebeast |url=https://hypebeast.com/2021/12/artreview-power-100-2021-list |access-date=2023-11-22}}
* {{Cite web |last=Abrams |first=Amah-Rose |date=2021-12-01 |title=Non-Fungible Tokens Are Deemed the Most Powerful Entity in the Art World in ArtReview's 2021 Power 100 Ranking |publisher=Artnet News |url=https://news.artnet.com/art-world/art-review-power-100-erc-721-2042220 |access-date=2023-11-22}}
* {{Cite web |last= |first= |date= |title=Nonhuman Entity Tops 2021 Edition of ArtReview's Annual Power 100 |publisher=artreview.com |url=https://artreview.com/non-human-entity-tops-2021-edition-of-artreview-annual-power-100/ |access-date=2023-11-22}}
* {{Cite web |last= |first= |date=2021-12-10 |title=The Two Miami Art Weeks |publisher=Yahoo Finance |url=https://finance.yahoo.com/news/two-miami-art-weeks-214019933.html |access-date=2023-11-22}}
* {{Cite news |last1=Khomami |first1=Nadia |last2=Arts |first2=Nadia Khomami |last3=correspondent |first3=culture |date=2021-12-01 |title=Non-fungible tokens take No 1 spot in influential art world power list |language=en-GB |work=The Guardian |url=https://www.theguardian.com/technology/2021/dec/01/non-fungible-tokens-take-no-1-spot-in-influential-art-world-power-list |access-date=2023-11-28 |issn=0261-3077}}</ref> Artist Beeple sold an ERC-721 NFT of his composite artwork known as ''Everydays: The First 5000 Days'' at Christie's for $69 million and was the first instance of a legacy arthouse dealing in NFTs.<ref>
* {{Cite web |last=Brown |first=Abram |date=2021-03-11 |title=Beeple NFT Sells For $69.3 Million, Becoming Most-Expensive Ever |work=Forbes |url=https://www.forbes.com/sites/abrambrown/2021/03/11/beeple-art-sells-for-693-million-becoming-most-expensive-nft-ever/ |access-date=2023-11-20}}
* {{Cite web |last=Reilly |first=Joel |date=2021-03-15 |title=We talked with Beeple about how NFT mania led to his $69 million art sale |work=Business Insider |url=https://www.businessinsider.com/beeple-nft-mike-winkelmann-digital-art-christies-2021-3 |access-date=2023-11-20}}
* {{Cite web |last=Block |first=Fang |date= |title=Beeple's NFT Fetches Record $69 Million at Christie's |publisher=Barron's |url=https://www.barrons.com/articles/beeples-nft-fetches-record-69-million-at-christies-01615502920 |access-date=2023-11-20}}
* {{Cite web |last=Reyburn |first=Scott |date=2021-03-11 |title=JPG File Sells for $69 Million, as 'NFT Mania' Gathers Pace |work=The New York Times |url=https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html |access-date=2023-11-20}}
</ref>
=== General NFT market ===
The NFT market experienced rapid growth during 2020, with its value tripling to {{Currency|250|US}} million.<ref name="Duffy-2021">{{Cite web |title=The NFT Market Tripled Last Year, and It's Gaining Even More Momentum in 2021 |url=https://www.morningbrew.com/emerging-tech/stories/2021/02/22/nft-market-tripled-last-year-gaining-even-momentum-2021 |access-date=April 8, 2021 |website=Morning Brew}}</ref> In the first three months of 2021, more than {{Currency|200|US}} million were spent on NFTs.<ref name="Time-2021">{{Cite magazine |title=NFTs Are Shaking Up the Art World – But They Could Change So Much More |url=https://time.com/5947720/nft-art/ |magazine=Time |access-date=April 6, 2021}}</ref>

In the early months of 2021, interest in NFTs increased after a number of high-profile sales and art auctions.<ref name="Howcroft-2021">{{Cite news |last=Howcroft |first=Elizabeth |date=March 17, 2021 |title=Explainer: NFTs are hot. So what are they? |language=en |work=Reuters |url=https://www.reuters.com/article/us-crypto-currency-nft-explainer-idUSKBN2B92MA |access-date=April 6, 2021}}</ref>

In May 2022, ''{{wipe|The Wall Street Journal}}'' reported that the NFT market was "collapsing". Daily sales of NFT tokens had declined 92% from September 2021, and the number of active wallets in the NFT market fell 88% from November 2021. While rising interest rates had impacted risky bets across the financial markets, the ''Journal'' said "NFTs are among the most speculative."<ref name="flatlining">{{Cite web |last=Vigna |first=Paul |date=May 3, 2022 |title=NFT Sales Are Flatlining |url=https://www.wsj.com/articles/nft-sales-are-flatlining-11651552616 |access-date=May 5, 2022 |website={{wipe|The Wall Street Journal}}}}</ref>

A September 2023 report from cryptocurrency gambling website dappGambl claimed 95% of NFTs had fallen to zero monetary value.<ref name="Yang2023"/><ref name="Vigliarolo2023"/>

==Uses==
===Commonly associated files===
NFTs have been used to exchange digital tokens that link to a digital file asset. Ownership of an NFT is often associated with a license to use such a linked digital asset but generally does not confer the copyright to the buyer. Some agreements only grant a license for personal, non-commercial use, while other licenses also allow commercial use of the underlying digital asset.<ref>{{cite journal |last1=Colicev |first1=Anatoli |date=2022 |title=How can non-fungible tokens bring value to brands |journal=International Journal of Research in Marketing |volume=40 |pages=30–37 |doi=10.1016/j.ijresmar.2022.07.003|s2cid=251183853 |doi-access=free }} Cf. {{cite web |url=https://www.mondaq.com/canada/copyright/1067734/nfts39-nifty-copyright-issues- |title=NFTs' Nifty Copyright Issues - Intellectual Property - Canada |last=Daniele |first=Daniel |date=May 17, 2021 |website= |publisher=mondaq |access-date=January 3, 2023}}</ref> This kind of decentralized intellectual copyright poses an alternative to established forms of safeguarding copyright controlled by state institutions and middlemen within the respective industry.<ref>{{cite journal |last1=Lee |first1=Edward |date=2022 |title=NFTs as Decentralized Intellectual Property |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4023736 |journal=University of Illinois Law Review |pages=20 |doi=10.2139/ssrn.4023736 |ssrn=4023736 |s2cid=247727602 |access-date=February 15, 2023}}</ref>

====Digital art====
Digital art is a common use case for NFTs.<ref>{{Cite news |last=Patterson |first=Dan |date=March 4, 2021 |title=Blockchain company buys and burns Banksy artwork to turn it into a digital original |publisher=CBS News |url=https://www.cbsnews.com/news/banksy-nft-injective-destroy-art-digital-token/ |access-date=March 17, 2021}}</ref> High-profile auctions of NFTs linked to digital art have received considerable public attention; the first such major house auction took place at Christie's in 2021.<ref>{{Cite web |last=Damiani |first=Jesse |date=1 March 2021 |title=SuperRare And Verisart Announce '10x10' NFT Auction Series Featuring Neïl Beloufa, Petra Cortright, Shepard Fairey, And More |url=https://www.forbes.com/sites/jessedamiani/2021/03/01/superrare-and-verisart-announce-10x10-nft-auction-series-featuring-nel-beloufa-petra-cortright-shepard-fairey-and-more/ |url-access=limited |access-date=21 April 2023 |website={{wipe|Forbes}}}}</ref> The work entitled ''Merge'' by artist Pak was the most expensive NFT, with an auction price of {{Currency|91.8|US}} million<ref>{{Cite web |date=December 7, 2021 |title=Pak Breaks Record for Most Expensive NFT Sale |url=https://hypebeast.com/2021/12/pak-merge-nifty-gateway-nft |access-date=January 16, 2022 |website=HYPEBEAST}}</ref> and ''Everydays: the First 5000 Days'', by artist Mike Winkelmann (known professionally as Beeple) the second most expensive at {{Currency|69.3|US}} million in 2021.<ref name="Kastrenakes" /><ref>{{Cite news |last=Thaddeus-Johns |first=Josie |date=March 11, 2021 |title=What Are NFTs, Anyway? One Just Sold for $69 Million. |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/03/11/arts/design/what-is-an-nft.html |access-date=April 14, 2021 |issn=0362-4331}}</ref>

[[File:VeKings.png|thumb|Some digital art NFTs, like these pixel art characters, are examples of generative art.]]
Some NFT collections, including Bored Apes, EtherRocks, and CryptoPunks, are examples of generative art, where many different images are created by assembling a selection of simple picture components in different combinations.<ref>{{Cite news |last=Sugiura |first=Eri |date=October 13, 2021 |title=NFTs turn Japan's manga and anime into genuine art |work=Financial Times |url=https://www.ft.com/content/4d17853c-5951-4473-91bc-31e2e4e27668 |url-access=subscription |access-date=November 4, 2021}}</ref>

In March 2021, the blockchain company Injective Protocol bought a $95,000 original screen print entitled ''Morons (White)'' from English graffiti artist Banksy and filmed somebody burning it with a [[Chemistry:Lighter|cigarette lighter]]. They uploaded (known as "minting" in the NFT scene) and sold the video as an NFT.<ref>{{Cite news |date=March 9, 2021 |title=Banksy art burned, destroyed and sold as token in 'money-making stunt' |language=en-GB |work=BBC News |url=https://www.bbc.com/news/technology-56335948 |access-date=October 13, 2021}}</ref><ref name="Banksy NFT">{{Cite magazine |last=Iscoe |first=Adam |date=May 8, 2021 |title=Burnt Banksy's Inflammatory N.F.T. Not-Art |magazine=The New Yorker |url=https://www.newyorker.com/magazine/2021/05/17/burnt-banksys-inflammatory-nft-not-art |access-date=November 18, 2021}}</ref> The person who destroyed the artwork, who called themselves "Burnt Banksy", described the act as a way to transfer a physical work of art to the NFT space.<ref name="Banksy NFT" />

American curator and art historian Tina Rivers Ryan, who specializes in digital works, said that art museums are widely not convinced that NFTs have "lasting cultural relevance."<ref>{{Cite web |last=Lu |first=Fei |date=January 6, 2022 |title=Does NFT Art Have A Place in the Museum in 2022? |url=https://jingculturecommerce.com/pamm-nfts-the-next-500-years-takeaways/ |access-date=January 6, 2022 |website=Jing Culture and Commerce |language=en}}</ref> Ryan compares NFTs to the [[Philosophy:Internet art|net art]] fad before the [[Dot-com bubble|dot-com bubble]].<ref>{{Cite web |date=April 30, 2021 |title=Why many art collectors are staying away from the NFT gold rush |url=https://www.independent.co.uk/life-style/gadgets-and-tech/buy-nft-crypto-art-collectors-b1839586.html |url-access=subscription |url-status=live |archive-url=https://ghostarchive.org/archive/20220621/https://www.independent.co.uk/life-style/gadgets-and-tech/buy-nft-crypto-art-collectors-b1839586.html |archive-date=June 21, 2022 |access-date=January 27, 2022 |website=The Independent |language=en}}</ref><ref>{{Cite journal |last1=Valeonti |first1=Foteini |last2=Bikakis |first2=Antonis |last3=Terras |first3=Melissa |last4=Speed |first4=Chris |last5=Hudson-Smith |first5=Andrew |last6=Chalkias |first6=Konstantinos |date=January 2021 |title=Crypto Collectibles, Museum Funding and OpenGLAM: Challenges, Opportunities and the Potential of Non-Fungible Tokens (NFTs) |journal=Applied Sciences |language=en |volume=11 |issue=21 |pages=9931 |doi=10.3390/app11219931 |doi-access=free}}</ref> In July 2022, after the controversial sale of Michelangelo's ''Doni Tondo'' in Italy, the sale of NFT reproductions of famous artworks was prohibited in Italy. Given the complexity and lack of regulation of the matter, the Ministry of Culture of Italy temporarily requested that its institutions refrain from signing contracts involving NFTs.<ref>{{Cite web |date=July 8, 2022 |title=Italian government plans to halt digital sales of masterpieces from its major museums |url=https://www.theartnewspaper.com/2022/07/08/italian-government-weighs-in-on-digital-copies-fracas |access-date=September 1, 2022 |website=The Art Newspaper - International art news and events}}</ref>

No centralized means of authentication exists to prevent stolen and counterfeit digital works from being sold as NFTs, although auction houses like [[Company:Sotheby's|Sotheby's]], Christie's, and various museums and galleries worldwide started collaborations and partnerships with digital artists such as Refik Anadol, Dangiuz and Sarah Zucker.

NFTs associated with digital artworks could be sold and bought via NFT platforms. OpenSea, launched in 2017, was one of the first marketplaces to host various types of NFTs.<ref name="Rodeck-2022">{{Cite web |last=Rodeck |first=David |date=May 10, 2022 |title=Top NFT Marketplaces Of 2022 |url=https://www.forbes.com/advisor/investing/cryptocurrency/best-nft-marketplaces/ |access-date=September 1, 2022 |website=Forbes Advisor |language=en-US}}</ref><ref>{{Cite web |last=Ehrlich |first=Steven |title=NFT Marketplace CEO Explains Why The Industry Is Moving Beyond Ideological Purists |url=https://www.forbes.com/sites/stevenehrlich/2021/07/06/nft-marketplace-ceo-explains-why-the-industry-is-moving-beyond-ideological-purists/ |access-date=September 1, 2022 |website=Forbes |language=en}}</ref> In July 2019, the National Basketball Association, the NBA Players Association and Dapper Labs, the creator of [[Software:CryptoKitties|CryptoKitties]], started a joint venture NBA Top Shot for basketball fans that let users buy NFTs of historic moments in basketball.<ref>{{Cite web |last=Beer |first=Tommy |title=NBA Top Shot Collectibles Continues Meteoric Rise With Over $50 Million in Sales in a Week |url=https://www.forbes.com/sites/tommybeer/2021/02/20/nba-top-shot-collectibles-continues-meteoric-rise-with-over-50-million-in-sales-in-a-week/ |access-date=September 1, 2022 |website=Forbes |language=en}}</ref><ref>{{Cite web |last=Bumbaca |first=Chris |title=What is NBA Top Shot and why is a LeBron highlight worth $208K? 'This is a real market,' Mark Cuban says |url=https://www.usatoday.com/story/sports/nba/2021/02/26/what-is-nba-top-shot-stocks-lebron-james-highlight/6825173002/ |access-date=September 1, 2022 |website=USA Today |language=en-US}}</ref> In 2020, Rarible was found, allowing multiple assets. In 2021, Rarible and [[Company:Adobe Inc.|Adobe]] formed a partnership to simplify the verification and security of metadata for digital content, including NFTs.<ref name="Rodeck-2022" /> In 2021, a cryptocurrency exchange [[Company:Binance|Binance]], launched its NFT marketplace.<ref>{{Cite web |last=Tepper |first=Taylor |date=May 27, 2021 |title=Binance.US Review 2022 |url=https://www.forbes.com/advisor/investing/cryptocurrency/binance-us-review/ |access-date=September 1, 2022 |website=Forbes Advisor |language=en-US}}</ref> In 2022, eToro Art by [[Company:EToro|eToro]] was founded, focusing on supporting NFT collections and emerging creators.<ref name="Rodeck-2022" /><ref>{{Cite web |title=eToro ART |url=https://www.etoro.art/en/etoro-art |access-date=September 1, 2022 |website=etoro.art |language=en}}</ref>

[[Company:Sotheby's|Sotheby's]] and Christie's auction houses showcase artworks associated with the respective NFTs both in virtual galleries and physical screens, monitors, and TVs.<ref>{{Cite web |title=Natively Digital: A Curated NFT Sale |url=https://www.sothebys.com/en/digital-catalogues/natively-digital-a-curated-nft-sale |website=sothebys.com |language=en-EN}}</ref><ref>{{Cite web |date=March 11, 2021 |title=Beeple sold an NFT for $69&nbsp;million |url=https://www.theverge.com/2021/3/11/22325054/beeple-christies-nft-sale-cost-everydays-69-million |website=The Verge |language=en-EN}}</ref><ref name="TechCrunch-2022" />

Mars House, an architectural NFT created in May 2020 by artist Krista Kim, sold in 2021 for 288 Ether (ETH) {{Emdash}} at that time equivalent to US$524,558.<ref>{{Cite web |title=Krista Kim's Mars House is 'first NFT digital house' to be sold over $500,000 |url=https://worldarchitecture.org/article-links/evzfc/krista-kim-s-mars-house-is-first-nft-digital-house-to-be-sold-over-500-000.html |access-date=June 17, 2022 |website=World Architecture Community |language=en}}</ref>

====Games====
{{Main|Finance:Blockchain game}}

NFTs can represent in-game assets. Some commentators describe these as being controlled "by the user" instead of the [[Software:Video game developer|game developer]]<ref>{{Cite web |last=Quiroz-Gutierrez |first=Marco |date=March 22, 2021 |title=NFTs Are Spurring a Digital Land Grab – in Videogame Worlds |url=https://www.wsj.com/articles/nfts-are-spurring-a-digital-land-grabin-videogame-worlds-11616414401 |url-access=subscription |archive-url=https://archive.today/20210322121158/https://www.wsj.com/articles/nfts-are-spurring-a-digital-land-grabin-videogame-worlds-11616414401 |archive-date=March 22, 2021 |access-date=March 23, 2021 |website={{wipe|The Wall Street Journal}}}}</ref> if they can be traded on third-party marketplaces without permission from the game developer. Their reception from game developers, though, has been generally mixed, with some like [[Company:Ubisoft|Ubisoft]] embracing the technology but [[Company:Valve Corporation|Valve]] and [[Company:Microsoft|Microsoft]] formally prohibiting them.<ref>{{Cite web |last=Alexander |first=Cristina |date=October 15, 2021 |title=Is Heroes & Empires free to play? |url=https://www.gamepur.com/guides/is-heroes-empires-free-to-play |archive-url=https://web.archive.org/web/20211111115732/https://www.gamepur.com/guides/is-heroes-empires-free-to-play |archive-date=November 11, 2021 |website=Gamepur |publisher=[[Social:Gamurs|Gamurs]]}}</ref>

* CryptoKitties was an early successful blockchain online game in which players adopt and trade virtual cats. The monetization of NFTs within the game raised a $12.5&nbsp;million investment, with some kitties selling for over $100,000 each.<ref name="BBC News-2017">{{Cite news |date=December 5, 2017 |title=CryptoKitties craze slows down transactions on Ethereum |work=BBC News |url=https://www.bbc.co.uk/news/technology-42237162 |access-date=May 8, 2022}}</ref><ref>{{Cite web |last=Tepper |first=Fitz |date=March 21, 2018 |title=CryptoKitties raises $12M from Andreessen Horowitz and Union Square Ventures |url=https://social.techcrunch.com/2018/03/20/cryptokitties-raises-12m-from-andreessen-horowitz-and-union-square-ventures/ |access-date=April 7, 2021 |website=TechCrunch |language=en-US |archive-date=August 13, 2021 |archive-url=https://web.archive.org/web/20210813062850/https://techcrunch.com/2018/03/20/cryptokitties-raises-12m-from-andreessen-horowitz-and-union-square-ventures/ |url-status=dead }}</ref><ref>{{Cite web |last=Cheng |first=Evelyn |date=December 6, 2017 |title=Meet CryptoKitties, the $100,000 digital beanie babies epitomizing the cryptocurrency mania |url=https://www.cnbc.com/2017/12/06/meet-cryptokitties-the-new-digital-beanie-babies-selling-for-100k.html |access-date=April 7, 2021 |publisher=CNBC |language=en}}</ref><ref>For the future potential of blockchain games with CryptoKitties as an example see {{cite journal |last1=Bamakan |first1=Seyed Mojtaba Hosseini |display-authors=et al. |date=February 2, 2022 |title=Patents and intellectual property assets as non-fungible tokens: key technologies and challenges |journal=Scientific Reports |volume=12 |issue=1 |page=2178 |doi=10.1038/s41598-022-05920-6|pmid=35140251 |pmc=8828876 |arxiv=2304.10490 |bibcode=2022NatSR..12.2178B |s2cid=246700675 }} Cf. {{cite journal |last1=Serada |first1=Alesja |last2=Sihvonen |first2=Tanja |last3=Harviainen |first3=J. Tuomas |date=February 20, 2020 |title=CryptoKitties and the New Ludic Economy: How Blockchain Introduces Value, Ownership, and Scarcity in Digital Gaming |journal=Games and Culture |volume=16 |issue=4 |pages=457–480 |doi=10.1177/1555412019898305|s2cid=213245049 |url=https://osuva.uwasa.fi/handle/10024/10686 }}</ref> Following its success, CryptoKitties was added to the ERC-721 standard, which was created in January 2018 (and finalized in June).<ref>{{Cite web |last=Entriken |first=William |date=June 22, 2018 |title=Move EIP 721 to Final (#1170) ethereum/EIPs@b015a86 |url=https://github.com/ethereum/EIPs/commit/b015a86658cfc12917507c067fff06f5fbec47fd |access-date=November 7, 2021 |website=GitHub |language=en}}</ref><ref name="Entriken-2018">{{Cite web |last1=Entriken |first1=William |last2=Shirley |first2=Dieter |last3=Evans |first3=Jacob |last4=Natassia |first4=Sachs |date=January 24, 2018 |title=EIP-721: Non-Fungible Token Standard |url=https://eips.ethereum.org/EIPS/eip-721 |access-date=October 28, 2021 |website=Ethereum Improvement Proposals}}</ref>
* In October 2021, [[Company:Valve Corporation|Valve Corporation]] banned applications from their [[Software:Steam (service)|Steam]] platform if those applications use [[Finance:Blockchain|blockchain]] technology or NFTs to exchange value or game artifacts.<ref>{{Cite news |last=Jiang |first=Sisi |date=October 15, 2021 |title=Good Riddance: Steam Bans Games That Feature Crypto And NFTs |work=Kotaku |url=https://kotaku.com/good-riddance-steam-bans-games-that-feature-crypto-and-1847874385 |archive-url=https://web.archive.org/web/20211015203717/https://kotaku.com/good-riddance-steam-bans-games-that-feature-crypto-and-1847874385 |archive-date=October 15, 2021}}</ref>
* In December 2021, [[Company:Ubisoft|Ubisoft]] announced Ubisoft Quartz, "an NFT initiative which allows people to buy artificially scarce digital items using cryptocurrency". The announcement was heavily criticized by audiences, with the Quartz announcement video attaining a dislike ratio of 96% on YouTube. Ubisoft subsequently unlisted the video from YouTube.<ref>{{Cite web |date=December 8, 2021 |title=Ubisoft's NFT Announcement Has Been Intensely Disliked |url=https://kotaku.com/ubisofts-nft-announcement-has-been-intensely-disliked-1848182203 |access-date=December 23, 2021 |website=Kotaku |language=en-us}}</ref><ref>{{Cite web |last=GameCentral |date=December 8, 2021 |title=Ubisoft unlist Quartz NFT announcement video as it gets 16K dislikes |url=https://metro.co.uk/2021/12/08/ubisoft-unlist-quartz-nft-announcement-video-as-it-gets-16k-dislikes-15736687/ |access-date=December 23, 2021 |website=Metro |language=en}}</ref> The announcement was also criticized internally by Ubisoft developers.<ref>{{Cite web |date=December 15, 2021 |title=Ubisoft Developers Confused, Upset Over NFT Plans |url=https://gamerant.com/ubisoft-quartz-nft-plans-developers-upset/ |access-date=December 23, 2021 |website=Game Rant |language=en-US}}</ref><ref>{{Cite web |date=December 15, 2021 |title=Ubisoft Quartz: Some developers of the company didn't like entering the world of NFTs |url=https://pledgetimes.com/ubisoft-quartz-some-developers-of-the-company-didnt-like-entering-the-world-of-nfts/ |access-date=December 23, 2021 |website=Pledge Times |language=en-US}}</ref><ref>{{Cite web |last=Nightingale |first=Ed |date=December 16, 2021 |title=French trade union criticises Ubisoft Quartz as "a useless, costly, ecologically mortifying tech" |url=https://www.eurogamer.net/articles/2021-12-16-french-trade-union-calls-ubisoft-nft-scheme-a-useless-costly-ecologically-mortifying-technology |access-date=December 23, 2021 |website=Eurogamer |language=en}}</ref> The [[Software:Game Developers Conference|Game Developers Conference]]'s 2022 annual report stated that 70 percent of developers surveyed said their studios had no interest in integrating NFTs or cryptocurrency into their games.<ref>{{Cite news |last=Jeffrey |first=Cal |title=Game Developers Conference report: most developers frown on blockchain games |work=TechSpot |url=https://www.techspot.com/news/93075-game-developers-conference-report-indicates-most-developer-frown.html |access-date=January 21, 2022}}</ref><ref>{{Cite news |last=Peters |first=Jay |date=January 20, 2022 |title=Many game developers hate NFTs, too |language=en |work=The Verge |url=https://www.theverge.com/2022/1/20/22893216/gdc-annual-survey-2022-game-developers-nfts |access-date=January 26, 2022}}</ref>
* Some luxury brands minted NFTs for online video game cosmetics.<ref>{{Cite news |last=Thomas |first=Dana |date=October 4, 2021 |title=Dolce & Gabbana Just Set a $6 Million Record for Fashion NFTs |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/10/04/style/dolce-gabbana-nft.html |access-date=January 20, 2022 |issn=0362-4331}}</ref> In November 2021, investment firm Morgan Stanley published a note claiming that this could become a US$56&nbsp;billion market by 2030.<ref>{{Cite web |last=Lee |first=Isabelle |date=November 17, 2021 |title=Luxury NFTs could become a $56&nbsp;billion market by 2030 and could see 'dramatically' increased demand thanks to the metaverse, Morgan Stanley says |url=https://markets.businessinsider.com/news/currencies/luxury-nfts-metaverse-56-billion-market-revenue-2030-morgan-stanley-2021-11 |access-date=January 20, 2022 |website=Insider |language=en}}</ref>
* In July 2022, Mojang Studios announced that NFTs would not be permitted in ''[[Software:Minecraft|Minecraft]]'', saying that they went against the game's "values of creative inclusion and playing together".<ref>{{Cite news |last=Taylor |first=Josh |date=July 21, 2022 |title=Minecraft developers won't allow NFTs on gaming platform |language=en |work=The Guardian |url=https://www.theguardian.com/games/2022/jul/21/minecraft-developers-wont-allow-nfts-on-gaming-platform |access-date=July 21, 2022}}</ref>

==== Music and film ====
NFTs have been proposed for use within the film-industry as a way to tokenize movie-scenes and sell them as collectibles in the form of NFTs.<ref>{{cite book |last1=Sestino |first1=Andrea |last2=Guido |first2=Gianluigi |last3=Peluso |first3=Alessandro M. |date=2022 |title=Non-Fungible Tokens (NFTs). Examining the Impact on Consumers and Marketing Strategies |url= |location= |publisher= |doi=10.1007/978-3-031-07203-1 |page=32 f|isbn=978-3-031-07202-4 |s2cid=250238540 }}</ref> Artists involved in the entertainment-industry can seek royalties through NFTs.<ref>{{cite journal |last1=Lee |first1=Edward |date=2022 |title=NFTs as Decentralized Intellectual Property |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4023736 |journal=University of Illinois Law Review |pages=36, 39, 43 |doi=10.2139/ssrn.4023736 |ssrn=4023736 |s2cid=247727602 |access-date=February 15, 2023 |quote=Using NFTs, artists now have the option of choosing to require a resale royalty for every resale of their NFTs.}}</ref>
So far, NFTs have often been used in both the music- as well as the film-industry.
* In May 2018, 20th Century Fox partnered with Atom Tickets and released limited-edition ''Deadpool 2'' digital posters to promote the film. They were available from OpenSea and the GFT exchange.<ref>{{Cite web |last=Heal |first=Jordan |title=Deadpool posters can now be bought as NFTs |url=https://www.yahoo.com/entertainment/deadpool-posters-now-bought-nfts-110019928.html |access-date=May 19, 2021 |website=Coin Rivet |date=June 24, 2019 |language=en-US |via=Yahoo!}} Cf. {{Cite web |last=Chmielewski |first=Dawn C. |date=August 3, 2018 |title='Deadpool 2' Jumps on the Digital Collectibles Bandwagon |url=https://deadline.com/2018/08/deadpool-2-jumps-digital-collectibles-blockchain-1202439356/ |access-date=May 19, 2021 |website=Deadline |language=en}}</ref> 
* In March 2021, Adam Benzine's 2015 documentary ''Claude Lanzmann: Spectres of the Shoah'' became the first motion picture and documentary film to be auctioned as an NFT.<ref>{{Cite web |last=Ravindran |first=Manori |date=March 15, 2021 |title=NFT Craze Enters Film World: 'Claude Lanzmann' Documentary is First Oscar Nominee to Be Released as Digital Token |url=https://variety.com/2021/film/global/nft-movies-first-film-sale-claude-lanzmann-documentary-1234930343/ |access-date=April 14, 2021 |website=Variety |language=en}}</ref>
* Other examples of NFTs being used in the film-industry include a collection of NFT-artworks for ''Godzilla vs. Kong'',<ref>{{Cite web |last=Bosselman |first=Haley |date=March 31, 2021 |title='Godzilla vs. Kong' to Have First Major Motion Picture NFT Art Release |url=https://variety.com/2021/film/news/godzilla-vs-kong-first-major-motion-picture-nft-art-release-1234941253/ |access-date=April 14, 2021 |website=Variety |language=en-US}}</ref> the release of both Kevin Smith's horror-movie ''KillRoy Was Here'' , and the 2021 film ''Zero Contact'' as NFTs in 2021.<ref>{{cite book |last1=Sestino |first1=Andrea |last2=Guido |first2=Gianluigi |last3=Peluso |first3=Alessandro M. |date=2022 |title=Non-Fungible Tokens (NFTs). Examining the Impact on Consumers and Marketing Strategies |url= |location= |publisher= |doi=10.1007/978-3-031-07203-1 |page=33|isbn=978-3-031-07202-4 |s2cid=250238540 }}</ref>
* In April 2021, an NFT was released for the score of the movie ''Triumph'', composed by Gregg Leonard.<ref>{{Cite web |last=Finn |first=John |date=April 30, 2021 |title=World's First Movie Score & Soundtrack For Sale As An NFT |url=https://screenrant.com/triumph-worlds-first-soundtrack-nft-music-rights-ip-blockchain/ |access-date=September 8, 2021 |website=ScreenRant |language=en}}</ref>
* In November 2021, film director Quentin Tarantino released seven NFTs based on uncut scenes of ''Pulp Fiction''. [[Company:Miramax|Miramax]] subsequently filed a lawsuit claiming that their film rights were violated and that the original 1993 contract with Tarantino gave them the right to mint NFTs in relation to ''Pulp Fiction''.<ref>{{Cite web |last=Diaz |first=Johnny |date=November 17, 2017 |title=Miramax Sues Quentin Tarantino Over Planned 'Pulp Fiction' NFTs |url=https://www.nytimes.com/2021/11/17/business/miramax-tarantino-nft-pulp-fiction.html |access-date=September 8, 2021 |website=The New York Times |language=en}} Cf. {{cite book |last1=Sestino |first1=Andrea |last2=Guido |first2=Gianluigi |last3=Peluso |first3=Alessandro M. |date=2022 |title=Non-Fungible Tokens (NFTs). Examining the Impact on Consumers and Marketing Strategies |url= |location= |publisher= |doi=10.1007/978-3-031-07203-1 |page=33|isbn=978-3-031-07202-4 |s2cid=250238540 }} See also {{cite journal |last1=Lee |first1=Edward |date=2022 |title=NFTs as Decentralized Intellectual Property |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4023736 |journal=University of Illinois Law Review |pages=41 f |doi=10.2139/ssrn.4023736 |ssrn=4023736 |s2cid=247727602 |access-date=February 15, 2023}}</ref>
* In August 2022, Muse released album ''Will of the People'' as 1,000 NFTs; it became the first album for which NFT sales would qualify for the UK and Australian charts.<ref>{{cite web|author= Bethany Minelle |date=September 2, 2022|url=https://news.sky.com/story/muses-will-of-the-people-becomes-first-uk-number-one-album-with-nft-technology-12687851 |title=Muse's Will Of The People becomes first UK number one album with NFT technology |publisher=Sky News |website=news.sky.com|accessdate=2023-05-20}}</ref><ref>{{cite web|author=Eamonn Forde |date=August 1, 2022 |url=https://www.theguardian.com/music/2022/aug/01/muse-release-nft-edition-album-will-of-the-people-charts |title=Sales from the crypto: Muse NFT album to become first new chart-eligible format in seven years |website={{wipe|The Guardian}}|accessdate=2023-05-20}}</ref>

By February 2021, NFTs accounted for {{currency|25|USD}} million of revenue generated through the sale of artwork and songs as NFTs.<ref>{{Cite web |last=Stassen |first=Murray |date=March 12, 2021 |title=Music-related NFT sales have topped $25m in the past month |url=https://www.musicbusinessworldwide.com/music-related-nft-sales-have-topped-25m-in-the-past-month/ |access-date=May 7, 2021 |website=Music Business Worldwide |language=en}}</ref> On February 28, 2021, electronic dance musician 3LAU sold a collection of 33 NFTs for a total of {{Currency|11.7|US}} million to commemorate the three-year anniversary of his ''Ultraviolet'' album.<ref name="Brown-2021">{{Cite web |last=Brown |first=Abram |title=Largest NFT Sale Ever Came From A Business School Dropout Turned Star DJ |url=https://www.forbes.com/sites/abrambrown/2021/03/03/3lau-nft-nonfungible-tokens-justin-blau/ |access-date=May 20, 2021 |website=Forbes |language=en}}</ref><ref>{{Cite web |last=Barcelin |first=Jason |date=May 1, 2021 |title=Las Vegas DJ-producer makes millions selling NFTs |url=https://www.reviewjournal.com/business/entrepreneurs/las-vegas-dj-producer-makes-millions-selling-nfts-2343633/ |access-date=October 13, 2021 |website=Las Vegas Review-Journal |language=en}}</ref> On March 3, 2021, an NFT was made to promote the Kings of Leon album ''When You See Yourself.''<ref>{{cite magazine|last=Hissong|first=Samantha|date=March 3, 2021|title=Kings of Leon Will Be the First Band to Release an Album as an NFT|url=https://www.rollingstone.com/pro/news/kings-of-leon-when-you-see-yourself-album-nft-crypto-1135192/|magazine=Rolling Stone|language=en-US|access-date=May 19, 2021}}</ref><ref>{{Cite news |last=Steele |first=Anne |date=March 23, 2021 |title=Musicians Turn to NFTs to Make Up for Lost Revenue |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/nfts-are-music-industrys-latest-big-hit-11616491801 |access-date=May 7, 2021 |issn=0099-9660}}</ref><ref>{{cite magazine|last=Hissong|first=Samantha|date=March 9, 2021|title=Music NFTs Have Gone Mainstream. Who's In?|url=https://www.rollingstone.com/pro/features/music-nfts-timeline-kings-of-leon-grimes-3lau-1138437/|magazine=Rolling Stone|language=en-US|access-date=May 20, 2021}}</ref> Other musicians who have used NFTs include American rapper Lil Pump,<ref name="Cheddar 2021-03-232">{{Cite news |date=March 23, 2021 |title=CEO of Sweet Talks NFT Partnership with Rapper Lil Pump |work=Cheddar |url=https://cheddar.com/media/ceo-of-sweet-talks-nft-partnership-with-rapper-lil-pump |access-date=March 29, 2021}}</ref><ref name="Vulture 2021-03-182">{{Cite news |last=Curto |first=Justin |date=March 18, 2021 |title=Musician NFT Projects, Ranked by How Many F's I Can Give |work=Vulture |url=https://www.vulture.com/2021/03/music-nft-projects-ranked.html |access-date=March 29, 2021}}</ref><ref name="XXL Mag 2021-03-23-2">{{Cite news |date=March 23, 2021 |title=Rappers and NFTs – How Hip-Hop Is Cashing in on Non-Fungible Tokens |work=XXL Mag |url=https://www.xxlmag.com/rappers-nfts-hip-hop-non-fungible-tokens/ |access-date=March 29, 2021}}</ref> Grimes,<ref>{{Cite web |last=Kastrenakes |first=Jacob |date=March 1, 2021 |title=Grimes sold $6&nbsp;million worth of digital art as NFTs |url=https://www.theverge.com/2021/3/1/22308075/grimes-nft-6-million-sales-nifty-gateway-warnymph |access-date=April 7, 2021 |website=The Verge |language=en}}</ref> visual artist Shepard Fairey in collaboration with record producer Mike Dean,<ref>{{Cite web |last=Halperin |first=Shirley |date=April 21, 2021 |title=Mike Dean and Shepard Fairey Team for NFT Offering 'OBEY 4:22' |url=https://variety.com/2021/music/news/mike-dean-shepard-fairey-nft-obey-422-1234955424/ |access-date=May 7, 2021 |website=Variety |language=en-US}}</ref> and rapper Eminem.<ref>{{Cite magazine |last=Kaufman |first=Gil |title=Eminem's First NFT Drop, 'Shady Con,' Includes One-of-a-Kind Slim Shady-Produced Beats |url=https://www.billboard.com/articles/columns/hip-hop/9561774/eminem-first-nft-drop-shady-con-details/ |magazine=Billboard |language=en |access-date=May 19, 2021}}</ref>

A paper presented at the ''40th International Conference on Information Systems'' in [[Place:Munich|Munich]] in 2019 suggested using NFTs as tickets for different types of events.<ref>{{cite web |access-date=2023-01-03 |last1=Regner |first1=Ferdinand |last2=Schweizer |first2=André |last3=Urbach |first3=Nils |date=March 15, 2021 |title=NFTs in Practice – Non-Fungible Tokens as Core Component of a Blockchain-based Event Ticketing Application |url=https://www.researchgate.net/publication/336057493 |website=Researchgate}} Cf. {{Cite web |date=April 12, 2021 |title=Golden Ticket: How NFTs Can Help Artists Profit From Ticket Resales |url=https://business-law-review.law.miami.edu/golden-ticket-nfts-artists-profit-ticket-resales/ |access-date=September 8, 2021 |website=MiamiLaw |language=en}} See also {{cite web|access-date=2023-01-03|date=May 6, 2021 |title=NFTs: The future of ticketing? |url=https://www.iq-mag.net/2021/05/nfts-future-ticketing/ |website=IQ Mag}}</ref> This would enable organizers of the respective events or artists performing there to receive royalties on the resale of each ticket.<ref>{{cite journal |last1=Gonserkewitz |first1=Phil |last2=Karger |first2=Erik |last3=Jagals |first3=Marvin |date=2022 |title=Non-Fungible Tokens: Use Cases of NFTs and Future Research Agenda |journal=Risk Governance & Control: Financial Markets & Institutions |volume=12 |issue=3 |pages=13 |doi=10.22495/rgcv12i3p1 |s2cid=252304860 |quote=For tickets to events, there is a secondary market where the seller can call an arbitrary price. There is a risk of purchasing invalid tickets. Regular tickets can also be copied and thus sold multiple times, although only one of them is valid. NFTs can guarantee the uniqueness and authenticity of the tickets|doi-access=free }}</ref>

====Other associated files====
* A number of [[Social:Internet meme|internet meme]]s have been associated with NFTs, which were minted and sold by their creators or by their subjects.<ref>{{Cite web |date=June 23, 2021 |title=NFTs and me: meet the people trying to sell their memes for millions |url=http://www.theguardian.com/technology/2021/jun/23/nfts-and-me-meet-the-people-trying-to-sell-their-memes-for-millions |access-date=July 17, 2021 |website=The Guardian |language=en}}</ref> Examples include [[Social:Doge (meme)|Doge]], an image of a Shiba Inu dog,<ref>{{Cite web |title=Iconic 'Doge' meme NFT breaks record, selling for $4&nbsp;million |date=June 11, 2021 |url=https://www.nbcnews.com/pop-culture/pop-culture-news/iconic-doge-meme-nft-breaks-records-selling-roughly-4-million-n1270161 |access-date=July 17, 2021 |publisher=NBC News |language=en}}</ref> as well as Charlie Bit My Finger,<ref>{{Cite news |date=June 3, 2021 |title=Charlie Bit Me NFT sale: Brothers to pay for university with auction money |language=en-GB |work=BBC News |url=https://www.bbc.com/news/newsbeat-57333990 |access-date=July 17, 2021}}</ref> [[Social:Nyan Cat|Nyan Cat]]<ref>{{Cite news |last=Griffith |first=Erin |date=February 22, 2021 |title=Why an Animated Flying Cat With a Pop-Tart Body Sold for Almost $600,000 |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/02/22/business/nft-nba-top-shot-crypto.html |access-date=July 17, 2021 |issn=0362-4331}}</ref><ref>{{Cite news |last=Griffith |first=Erin |date=February 22, 2021 |title=Why an Animated Flying Cat With a Pop-Tart Body Sold for Almost $600,000 |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/02/22/business/nft-nba-top-shot-crypto.html |access-date=April 7, 2021 |issn=0362-4331}}</ref> and [[Social:Disaster Girl|Disaster Girl]].<ref>{{Cite news |date=April 30, 2021 |title=Zoë Roth sells 'Disaster Girl' meme as NFT for $500,000 |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-us-canada-56948514 |access-date=July 17, 2021}}</ref>
* Some virtual worlds, often marketed as metaverses, have incorporated NFTs as a means of trading virtual items and virtual real estate.<ref>{{Cite web |date=June 18, 2021 |title=Virtual real estate plot sells for close to $1 mln |url=https://www.reuters.com/technology/virtual-real-estate-plot-sells-close-1-mln-2021-06-18/ |website=Reuters}}</ref>
* Some pornographic works have been sold as NFTs, though hostility from NFT marketplaces towards pornographic material has presented significant drawbacks for creators.<ref>{{Cite magazine |last=Dickson |first=EJ |date=March 16, 2021 |title=Porn Creators Are Getting in on the NFT Craze |url=https://www.rollingstone.com/culture/culture-features/crypto-nft-sex-workers-porn-performers-1142030/ |magazine=Rolling Stone |access-date=March 30, 2021}}</ref><ref>{{Cite web |last=Cole |first=Samantha |date=March 19, 2021 |title='Building the Cockchain:' How NSFW Artists Are Shaping the Future of NFTs |url=https://www.vice.com/en/article/88aybx/building-the-cockchain-how-nsfw-artists-are-shaping-the-future-of-nfts |access-date=March 30, 2021 |website=Vice}}</ref> By using NFTs people engaged in this area of the entertainment-industry are able to publish their works without third-party platforms being able to delete them.<ref>{{cite book |last1=Sestino |first1=Andrea |last2=Guido |first2=Gianluigi |last3=Peluso |first3=Alessandro M. |date=2022 |title=Non-Fungible Tokens (NFTs). Examining the Impact on Consumers and Marketing Strategies |url= |location= |publisher= |doi=10.1007/978-3-031-07203-1 |page=34|isbn=978-3-031-07202-4 |s2cid=250238540 }}</ref>
* The first credited political protest NFT ("Destruction of Nazi Monument Symbolizing Contemporary Lithuania") was a video filmed by Professor Stanislovas Tomas on April 8, 2019, and minted on March 29, 2021. In the video, Tomas uses a sledgehammer to destroy a state-sponsored Lithuanian plaque located on the Lithuanian Academy of Sciences honoring Nazi war criminal Jonas Noreika.<ref>{{Cite web |last=Starr |first=Michael |date=April 1, 2021 |title=Activist turns anti-Nazi act into commodified digital art |url=https://www.jpost.com/omg/activist-turns-anti-nazi-act-into-commodified-digital-art-663771 |access-date=October 13, 2021 |website=The Jerusalem Post |language=en-US}}</ref>
* In 2020, CryptoKitties developer Dapper Labs released the NBA TopShot project, which allowed the purchase of NFTs linked to basketball highlights.<ref>{{Cite web |date=May 27, 2020 |title=CryptoKitties developer launches NBA TopShot, a new blockchain-based collectible collab with the NBA |url=https://social.techcrunch.com/2020/05/27/cryptokitties-developer-launches-nba-top-shot-a-new-blockchain-based-collectible-collab-with-the-nba/ |access-date=April 9, 2021 |website=TechCrunch |language=en-US |archive-date=April 30, 2022 |archive-url=https://web.archive.org/web/20220430032518/https://techcrunch.com/2020/05/27/cryptokitties-developer-launches-nba-top-shot-a-new-blockchain-based-collectible-collab-with-the-nba/ |url-status=dead }}</ref> The project was built on top of the Flow blockchain.<ref name="Engadget 2021-03-11 Ref1">{{Cite news |last=Cooper |first=Daniel |date=March 11, 2021 |title=NFTs are both priceless and worthless |work=Engadget |url=https://www.engadget.com/nft-explainer-digital-art-collectibles-blockchain-environment-business-investment-cryptocurrency-153023551.html |access-date=April 9, 2021}}</ref>
* In March 2021 an NFT of [[Company:Twitter|Twitter]] founder Jack Dorsey's first-ever tweet sold for $2.9&nbsp;million. The same NFT was listed for sale in 2022 at $48&nbsp;million, but only achieved a top bid of $280.<ref>{{Cite news |date=April 13, 2022 |title=Auction of Jack Dorsey Tweet NFT Comes in Millions Below Target |work={{wipe|Bloomberg News}} |url=https://www.bloomberg.com/news/articles/2022-04-13/dorsey-s-tweet-nft-fails-by-millions-in-resale-attempt-coindesk |access-date=April 14, 2022}} {{subscription required|s}}</ref>
* On December 15, 2022, Donald Trump, former president of the United States, announced a line of NFTs featuring images of himself for $99 each.<ref>{{Cite web |last=Johnson |first=Ted |date=December 15, 2022 |title=Donald Trump's Major Announcement: Digital Trading Cards Of Himself For "Only $99 Each" |url=https://deadline.com/2022/12/donald-trump-announcement-digital-trading-cards-1235200212/ |access-date=December 15, 2022 |website=Deadline}}</ref> It was reported that he made between $100,001 and $1 million from the scheme.<ref>{{Cite news |last=Washington |first=Alistair Dawber |title=Donald Trump NFTs net former president up to $1m |newspaper=The Times |language=en |url=https://www.thetimes.co.uk/article/donald-trump-nfts-net-former-president-up-to-1m-z79k3hdx8 |access-date=2023-04-25 |issn=0140-0460}}</ref>

=== Use cases of NFTs in science and medicine ===
NFTs have been proposed for purposes related to scientific and medical purposes.<ref name="jonesnature">{{cite journal |last1=Jones |first1=Nicola |date=2021-06-18 |title=How scientists are embracing NFTs |journal=Nature |volume=594 |issue=7864 |pages=481–482 |doi=10.1038/d41586-021-01642-3|pmid=34145410 |bibcode=2021Natur.594..481J |s2cid=235481285 |doi-access=free }}</ref> Suggestions include turning patient data into NFTs,<ref>{{cite journal |display-authors=et al. |last1=Kostick-Quenet |first1=Kristin |date=2022-02-03 |title=How NFTs could transform health information exchange |journal=Science |volume=375 |issue=6580 |pages=500―502 |doi=10.1126/science.abm2004|pmid=35113709 |pmc=10111125 |bibcode=2022Sci...375..500K |s2cid=246529093 }}</ref> tracking supply chains<ref>{{cite journal |last1=Chiacchio |first1=F. |date=2022-04-15 |title=Non-Fungible Token Solution for the Track and Trace of Pharmaceutical Supply Chain |journal=Applied Sciences |volume=12 |issue=8 |page=4019 |doi=10.3390/app12084019 |display-authors=et al.|doi-access=free }} Cf. {{cite journal |last1=Gayialis |first1=Sotiris P. |display-authors=et al. |date=2022-09-17 |title=A Business Process Reference Model for the Development of a Wine Traceability System |journal=Sustainability |volume=14 |issue=18 |pages=3 |doi=10.3390/su141811687|doi-access=free }}</ref> and minting patents as NFTs.<ref>{{cite journal |last1=Bamakan |first1=Seyed Mojtaba Hosseini |display-authors=et al. |date=2022-02-09 |title=Patents and intellectual property assets as non-fungible tokens; key technologies and challenges |journal=Scientific Reports |volume=12 |issue=1 |page=2178 |doi=10.1038/s41598-022-05920-6|pmid=35140251 |pmc=8828876 |arxiv=2304.10490 |bibcode=2022NatSR..12.2178B |s2cid=246700675 }} Cf. {{cite journal |last1=Hasan |first1=Haya R. |display-authors=et al. |date=2022-07-19 |title=Incorporating Registration, Reputation, and Incentivization Into the NFT Ecosystem |journal=IEEE Access |volume=10 |pages=76417 |quote=The paper describes the solution’s various layers, which include storage, authentication, verification, blockchain, and the application layer. The authors focused on utilizing NFTs to protect intellectual properties. Their framework is theoretical and can be improved upon by adding a programmable logic implementation using smart contracts. |doi=10.1109/ACCESS.2022.3192388|bibcode=2022IEEEA..1076416H |s2cid=250710317 |doi-access=free }}</ref>

The monetary aspect of the sale of NFTs has been used by academic institutions to finance research projects.
[[File:George Church.jpg|thumb|upright|George M. Church sold NFTs of an "artistic representation" of his genome and likeness in 2022.]]
* The [[Organization:University of California, Berkeley|University of California, Berkeley]] announced in May 2021 its intention to auction NFTs of two patents of inventions for which the creators had received a Nobel Prize: the patents for [[Biology:CRISPR gene editing|CRISPR gene editing]] and [[Chemistry:Cancer immunotherapy|cancer immunotherapy]]. The university would, however, retain ownership of the patents.<ref>{{cite web |url=https://news.berkeley.edu/2021/05/27/uc-berkeley-will-auction-nfts-of-nobel-prize-winning-inventions-to-fund-research/ |title=UC Berkeley Will Auction NFTs for 2 Nobel Prize Patents |last=Whitford |first=Emma |date=2021-05-28 |publisher=Inside Higher Ed |access-date=2023-01-03}}</ref><ref>{{cite book |last1=Sestino |first1=Andrea |last2=Guido |first2=Gianluigi |last3=Peluso |first3=Alessandro M. |date=2022 |title=Non-Fungible Tokens (NFTs). Examining the Impact on Consumers and Marketing Strategies |url= |location= |publisher= |doi=10.1007/978-3-031-07203-1 |page=28|isbn=978-3-031-07202-4 |s2cid=250238540 }}</ref> 85% of funds gathered through the sale of the collection were to be used to finance research.<ref>{{cite web |url=https://www.nytimes.com/2021/05/27/science/nobel-prize-nft-berkeley.html |title=You Can Buy a Piece of a Nobel Prize-Winning Discovery |last=Chang |first=Kenneth |date=2021-05-27 |work={{wipe|The New York Times}} |access-date=2023-01-03}}</ref><ref>{{cite journal |last1=Trautman |first1=Lawrence J. |date=2022 |title=Virtual Art and Non-Fungible Tokens |journal=Hofstra Law Review |volume=50 |issue=361 |pages=369 f |doi=10.2139/ssrn.3814087|s2cid=234830426 |url=https://scholarlycommons.law.hofstra.edu/context/hlr/article/3172/viewcontent/5____virtual_art____ARTICLE____fourth_article__pages_361_to_426.pdf }}</ref> The collection included handwritten notices and faxes by [[Biography:James P. Allison|James Allison]] and was named ''The Fourth Pillar''. It sold in June 2022 for 22 Ether, about {{Currency|54000|US}} at the time.<ref name="jonesnature482">{{cite journal |last1=Jones |first1=Nicola |date=2021-06-18 |title=How scientists are embracing NFTs |journal=Nature |volume=594 |issue=7864 |pages=482 |doi=10.1038/d41586-021-01642-3|pmid=34145410 |bibcode=2021Natur.594..481J |s2cid=235481285 |doi-access=free }}</ref>
* George Church, a US geneticist, announced his intention to sell his [[Biology:DNA|DNA]] via NFTs and use the profits to finance research conducted by [[Company:Nebula Genomics|Nebula Genomics]]. In June 2022, 20 NFTs with his likeness were published instead of the originally planned NFTs of his DNA due to the market conditions at the time.<ref name="jonesnature"/> Despite mixed reactions, the project is considered to be part of an effort to use the genetic data of 15,000 individuals to support genetic research. By using NFTs the project wants to ensure that the users submitting their genetic data are able to receive direct payment for their contributions.<ref name="jonesnature"/><ref>{{cite web|access-date=2023-01-03|first=Victor |last=Tangermann|date=2022-04-21|title=A Harvard Scientist is Selling his Genetic Code as an NFT|url=https://futurism.com/neoscope/george-church-harvard-scientist-genetic-code-nft|website=Neoscope ― Futurism}}</ref> Several other companies have been involved in similar and often criticized efforts to use blockchain-based genetic data in order to guarantee users more control over their data and enable them to receive direct financial compensation whenever their data is being sold.<ref name="jonesnature482"/>
* Molecule Protocol, a project based in Switzerland, is trying to use NFTs to digitize the intellectual copyright of individual scientists and research teams to finance research.<ref name="BusinessinsiderMolecule">{{cite web|access-date=2023-01-03|first=Riddhi |last=Kanetkar|date=2022-12-05|title=The pandemic was a crisis that fueled interest in novel drug discovery methods like AI. These 14 startups are predicted by investors to be future winners.|url=https://www.businessinsider.com/drug-discovery-startups-set-to-take-off-top-investors-2022-11?r=US&IR=T#molecule-aims-to-be-a-web3-marketplace-for-pharma-research-9|website=Businessinsider}}</ref> The project's whitepaper explains the aim is to represent the copyright of scientific papers as NFTs and enable their trade between researchers and investors on a future marketplace.<ref>{{cite web|access-date=2023-01-03|language=en|title=Molecule Documentation, s.v. "IP-NFT Protocol"|url=https://docs.molecule.to/documentation/ip-nft-protocol/intro-to-ip-nft}}</ref> The project was able to raise {{Currency|12|US}} million in seed money in July 2022.<ref name="BusinessinsiderMolecule"/> A similar approach has been announced by RMDS Lab.<ref>{{cite web|access-date=2023-01-03|title=rmdslab.com|url=https://www.rmdslab.com/}}</ref>

===Speculation===
NFTs representing digital collectables and artworks are a [[Finance:Speculation|speculative asset]].<ref>{{Cite news |last=Howcroft |first=Elizabeth |date=August 25, 2021 |title=NFT sales surge as speculators pile in, sceptics see bubble |language=en |work=Reuters |url=https://www.reuters.com/technology/nft-sales-surge-speculators-pile-sceptics-see-bubble-2021-08-25/ |access-date=January 17, 2022}}</ref> The NFT buying surge was called an [[Finance:Economic bubble|economic bubble]] by experts, who also compared it to the [[Dot-com bubble]].<ref name="Reyburn-2021">{{Cite news |last=Reyburn |first=Scott |date=March 30, 2021 |title=Art's NFT Question: Next Frontier in Trading, or a New Form of Tulip? |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/03/30/arts/design/nft-bubble.html |url-access=limited |access-date=May 3, 2021 |archive-url=https://ghostarchive.org/archive/20211228/https://www.nytimes.com/2021/03/30/arts/design/nft-bubble.html |archive-date=December 28, 2021 |issn=0362-4331}}{{cbignore}}</ref><ref name="Small-2021">{{Cite news |last=Small |first=Zachary |date=April 28, 2021 |title=As Auctioneers and Artists Rush into NFTs, Many Collectors Stay Away |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/04/28/arts/design/nfts-art-collectors-copyright.html |url-access=limited |access-date=May 3, 2021 |archive-url=https://ghostarchive.org/archive/20211228/https://www.nytimes.com/2021/04/28/arts/design/nfts-art-collectors-copyright.html |archive-date=December 28, 2021 |issn=0362-4331}}{{cbignore}}</ref> In March 2021 Mike Winkelmann called NFTs an "irrational exuberance bubble".<ref name="Cuthbertson-2021">{{Cite web |last=Cuthbertson |first=Anthony |date=March 24, 2021 |title=NFT MILLIONAIRE BEEPLE SAYS CRYPTO ART IS BUBBLE AND WILL 'ABSOLUTELY GO TO ZERO' |url=https://www.independent.co.uk/life-style/gadgets-and-tech/nft-beeple-cryptocurrency-art-b1821314.html |url-access=subscription |url-status=live |archive-url=https://ghostarchive.org/archive/20220621/https://www.independent.co.uk/life-style/gadgets-and-tech/nft-beeple-cryptocurrency-art-b1821314.html |archive-date=June 21, 2022 |access-date=January 5, 2022 |website=The Independent}}{{subscription required}}</ref> By mid-April 2021, demand subsided, causing prices to fall significantly.<ref name="Tarmy-2021">{{Cite news |last1=Tarmy |first1=James |last2=Kharif |first2=Olga |date=April 15, 2021 |title=These Crypto Bros Want to Be the Guggenheims of NFT Art |work=Bloomberg Businessweek |url=https://www.bloomberg.com/news/features/2021-04-15/nft-collectors-this-is-who-s-buying-beeple-pak-mad-dog-jones-micah-johnson |access-date=April 29, 2021}}</ref> Financial theorist William J. Bernstein compared the NFT market to 17th-century [[Biology:Tulip mania|tulip mania]], saying any speculative bubble requires a technological advance for people to "get excited about", with part of that enthusiasm coming from the extreme predictions being made about the product.<ref>{{Cite news |last1=Vanek Smithj |first1=Stacey |last2=Woods |first2=Darian |date=August 4, 2021 |title=The Origin of Value: The Greater Fools Theory: The Indicator from Planet Money |language=en |publisher=NPR |url=https://www.npr.org/transcripts/1024881179 |access-date=January 26, 2022}}</ref> For regulatory policymakers, NFTs have exacerbated challenges such as speculation, fraud, and high volatility.<ref>{{Cite journal |last1=Bao |first1=Hong |last2=Roubaud |first2=David |date=May 8, 2022 |title=Non-Fungible Token: A Systematic Review and Research Agenda |journal=Journal of Risk and Financial Management |language=en |volume=15 |issue=5 |pages=215 |doi=10.3390/jrfm15050215 |issn=1911-8074 |doi-access=free|hdl=10419/274737 |hdl-access=free }}</ref>

===Money laundering===
NFTs, as with other blockchain securities and with traditional art sales, can potentially be used for [[Finance:Money laundering|money laundering]].<ref name="rusi">{{Cite report |url=https://rusi.org/explore-our-research/publications/commentary/nfts-new-frontier-money-laundering |title=NFTs: A New Frontier for Money Laundering? |last1=Owen |first1=Allison |last2=Chase |first2=Isabella |date=December 2, 2021 |publisher=Royal United Services Institute |access-date=December 15, 2021}}</ref> NFTs can be used for wash trading by creating several [[Finance:Cryptocurrency wallet|wallets]] for one individual, generating several fictitious sales and consequently selling the respective NFT to a third party.<ref>{{Cite report |url=https://home.treasury.gov/system/files/136/Treasury_Study_WoA.pdf |title=Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art |publisher=United States Department of the Treasury |page=27 |access-date=December 15, 2021 |year=2022}}</ref> According to a report by [[Company:Chainalysis|Chainalysis]] these types of wash trades are becoming popular among money launderers because of the largely anonymous nature of transactions on NFT marketplaces.<ref>{{Cite web |last=Quiroz-Gutierrez |first=Marco |date=February 4, 2022 |title=A handful of NFT users are making big money off of a stealth scam. Here's how 'wash trading' works |url=https://fortune.com/2022/02/04/nft-wash-trade-scam-millions/ |access-date=December 15, 2022 |website=Fortune}}</ref><ref>{{Cite web |date=February 2, 2022 |title=Crime and NFTs: Chainalysis Detects Significant Wash Trading and Some NFT Money Laundering In this Emerging Asset Class |url=https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/ |access-date=December 15, 2022 |publisher=Chainalysis}}</ref><ref name="wisogeldwäsche">{{Cite web |last=Littmann |first=Saskia |date=February 5, 2022 |title=Geldwäscher entdecken den NFT-Markt |url=https://www.wiwo.de/my/finanzen/geldanlage/digitale-kunstwerke-geldwaescher-entdecken-den-nft-markt/28038778.html?ticket=ST-71468-f9faSbICxxfwnaGEN5TP-cas01.example.org |access-date=December 15, 2022 |website=Wirtschaftswoche |language=german}}</ref> ''Looksrare'', created in early 2022, came to be known for the large sums generated through the sale of NFTs in its earliest days, amounting to {{Currency|400&nbsp;million|US }} a day. These large sums were generated in large part through wash trading.<ref name="wisogeldwäsche" /> The Royal United Services Institute said that any risks in relation to money laundering through NFTs could be mitigated through the use of "[[Finance:Know your customer|KYC]] best practices, strong cyber security measures and a stolen art registry (...) without restricting the growth of this new market".<ref name="rusi" />

Auction platforms for NFTs may face regulatory pressure to comply with anti-money laundering legislation. Gou Wenjun, the director of a monitoring centre for the [[Company:People's Bank of China|People's Bank of China]], said that NFTs could "easily become money-laundering tools". He pointed to unlawful exploitation of cryptographic technologies and said that illicit actors often presented themselves as innovators in financial technology.<ref>{{Cite web |last=Coco |first=Feng |date=December 2, 2021 |title=China's market for NFTs, metaverse may drive money laundering |url=https://www.scmp.com/tech/policy/article/3158170/chinas-growing-market-nfts-metaverse-could-foster-new-money-laundering |access-date=January 16, 2022 |website=South China Morning Post |language=en}}</ref>

A 2022 study from the United States Treasury assessed that there was "some evidence of money laundering risk in the high-value art market", including through "the emerging digital art market, such as the use of non-fungible tokens (NFTs)".<ref>{{Cite web |title=Treasury Releases Study on Illicit Finance in the High-Value Art Market |url=https://home.treasury.gov/news/press-releases/jy0588 |access-date=February 4, 2022 |website=U.S. Department of the Treasury |language=en}}</ref> The study considered how NFT transactions may be a simpler option for laundering money through art by avoiding the transportation or insurance complications in trading physical art. Several NFT exchanges were labeled as virtual asset service providers that may be subject to Financial Crimes Enforcement Network regulations.<ref>{{Cite report |url=https://home.treasury.gov/system/files/136/Treasury_Study_WoA.pdf |title=Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art |publisher=United States Department of the Treasury |page=26 |access-date=December 15, 2021 |year=2022}}</ref> In March 2022, two people were charged for the execution of a million-dollar NFT scheme through wire fraud.<ref>{{Cite web |date=March 24, 2022 |title=Two Defendants Charged in Non-Fungible Token ("NFT") Fraud And Money Laundering Scheme |url=https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0}}</ref>

The European Commission announced in July 2022 that it was planning to draw up regulations to combat money laundering by 2024.<ref>{{Cite web |last=Reiche |first=Matthias |date=July 12, 2022 |title=Umgang mit Bitcoin & Co. Wie die EU den Kryptomarkt reguliert |url=https://www.tagesschau.de/wirtschaft/finanzen/eu-kryptomarkt-101.html |access-date=December 15, 2022 |language=German}}</ref><ref>{{Cite web |last=Schickler |first=Jack |date=September 2, 2022 |title=Money Laundering via Metaverse, DeFi, NFTs Targeted by EU Lawmakers' Latest Draft |url=https://finance.yahoo.com/news/money-laundering-via-metaverse-defi-134732625.html |access-date=December 15, 2022}}</ref>

===Other uses===
* In 2019, [[Company:Nike, Inc.|Nike]] patented a system called CryptoKicks that would use NFTs to verify the authenticity of its physical products and would give a virtual version of the shoe to the customer.<ref>{{Cite news |last=Gallagher |first=Jacob |date=March 15, 2021 |title=NFTs Are the Biggest Internet Craze. Do They Work for Sneakers? |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/nfts-and-fashion-collectors-pay-big-money-for-virtual-sneakers-11615829266 |access-date=April 7, 2021 |issn=0099-9660}}</ref>
* Certain NFT releases have also added exclusivity to the NFT utility, including access to private online clubs.<ref>{{Cite news |date=August 12, 2021 |title=I Joined a Penguin NFT Club Because Apparently That's What We Do Now |language=en |work=The New York Times |url=https://www.nytimes.com/2021/08/12/technology/penguin-nft-club.html |url-access=limited |archive-url=https://ghostarchive.org/archive/20211228/https://www.nytimes.com/2021/08/12/technology/penguin-nft-club.html |archive-date=December 28, 2021}}{{cbignore}}</ref><ref>{{Cite magazine |last=Chayka |first=Kyle |date=July 30, 2021 |title=Why Bored Ape Avatars Are Taking Over Twitter |url=https://www.newyorker.com/culture/infinite-scroll/why-bored-ape-avatars-are-taking-over-twitter |magazine=The New Yorker |language=en}}</ref>

==Standards in blockchains==
Several blockchains have added support for NFTs since Ethereum created its ERC-721 standard.<ref name="Entriken-2021">{{Cite web |title=EIP-721: ERC-721 Non-Fungible Token Standard |url=https://eips.ethereum.org/EIPS/eip-721 |access-date=April 5, 2021 |website=Ethereum Improvement Proposals |language=en}}</ref><ref>{{Cite magazine |last=Volpicelli |first=Gian |date=February 24, 2021 |title=The bitcoin elite are spending millions on collectable memes |url=https://www.wired.co.uk/article/crypto-art-nft |magazine=Wired UK}}</ref>

ERC-721 is an "inheritable" [[Finance:Smart contract|smart contract]] standard, which means that developers can create contracts by copying from a reference implementation. ERC-721 provides core methods that allow tracking the owner of a unique identifier, as well as a way for the owner to transfer the asset to others.<ref name="Entriken-2021" /> Another standard, ERC-1155, offers "semi-fungibility" whereby a token represents a class of interchangeable assets.<ref name="Radomski-2021">{{Cite web |title=EIP-1155: ERC-1155 Multi Token Standard |url=https://eips.ethereum.org/EIPS/eip-1155 |access-date=April 5, 2021 |website=Ethereum Improvement Proposals |language=en}}</ref>

==Issues and criticisms==
===Unenforceability of copyright===
[[File:Right-clicked NFT.png|thumb|As an image on the web, the digital art linked to a non-fungible token may be right-clicked and saved like any other picture file.]]
Because the contents of NFTs are publicly accessible, anybody can easily copy a file referenced by an NFT. Furthermore, the ownership of an NFT on the blockchain does not inherently convey legally enforceable [[Social:Intellectual property|intellectual property]] rights to the file.

It has become well known that an NFT image can be copied or saved from a web browser by using a [[Context menu|right click menu]] to download the referenced image. NFT supporters disparage this duplication of NFT artwork as a "right-clicker mentality". One collector quoted by ''Vice'' compared the value of a purchased NFT (in contrast to an unpurchased copy of the underlying asset) to that of a [[Philosophy:Status symbol|status symbol]] "to show off that they can afford to pay that much".<ref name="vice right-clicker">{{Cite web |last=Gault |first=Matthew |date=November 3, 2021 |title=What the Hell Is 'Right-Clicker Mentality'? |url=https://www.vice.com/en/article/5dgzed/what-the-hell-is-right-clicker-mentality |access-date=November 3, 2021 |website=Vice}}</ref>

The "right-clicker mentality" phrase spread virally after its introduction, particularly among those who were critical of the NFT marketplace and who appropriated the term to flaunt their ability to capture digital art backed by NFT with ease.<ref name="vice right-clicker" /> This criticism was promoted by Australian programmer Geoffrey Huntley who created "The NFT Bay", modeled after [[Social:The Pirate Bay|The Pirate Bay]]. The NFT Bay advertised a [[Torrent file|torrent file]] purported to contain 19 [[Terabyte|terabyte]]s of digital art NFT images. Huntley compared his work to an art project from Pauline Pantsdown and hoped the site would help educate users on what NFTs are and are not.<ref>{{Cite web |last=Gault |first=Matthew |date=November 18, 2021 |title=Someone Made a Pirate Bay for NFTs |url=https://www.vice.com/en/article/xgdxvw/someone-made-a-pirate-bay-for-nfts |access-date=November 18, 2021 |website=Vice}}</ref>

===Storage off-chain===
NFTs that represent digital art generally do not store the associated artwork file on the blockchain due to the large size of such a file and the limited processing speed of blockchains. Such a token functions like a certificate of ownership, with a web address that points to the piece of art in question; this however makes the art itself vulnerable to [[Link rot|link rot]].<ref name="dash2" />

===Environmental concerns===
NFT purchases and sales are enabled by the high energy usage, and consequent [[Earth:Greenhouse gas emissions|greenhouse gas emissions]], associated with blockchain transactions.<ref name="Calma">{{Cite web |last=Calma |first=Justine |date=March 15, 2021 |title=The climate controversy swirling around NFTs |url=https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change |access-date=April 15, 2021 |website=The Verge |language=en}}</ref> Though all forms of Ethereum transactions have an impact on the environment, the direct impact of the transaction is also dependent upon the size of the Ethereum transaction.<ref>{{Cite arXiv |eprint=2202.00003 |class=cs.CR |first1=Samuele |last1=Marro |first2=Luca |last2=Donno |title=Green NFTs: A Study on the Environmental Impact of Cryptoart Technologies |date=January 29, 2022}}</ref> The [[Finance:Proof of work|proof-of-work]] protocol required to regulate and verify blockchain transactions on networks such as [[Finance:Ethereum|Ethereum]] consumes a large amount of electricity.<ref>{{Cite journal |last1=Krause |first1=Max |last2=Tolaymat |first2=Thabet |year=2018 |title=Quantification of energy and carbon costs for mining cryptocurrencies |url=https://www.nature.com/articles/s41893-018-0152-7.epdf |journal=Nature Sustainability |volume=1 |page=814 |doi=10.1038/s41893-018-0188-8 |doi-access=free}}</ref><ref>{{cite journal|last1=Gallersdorfer|first1=Ulrich|last2=Klassen|first2=Lena|last3=Stoll|first3=Christian|title= Energy Consumption of Cryptocurrencies Beyond Bitcoin |journal=Joule |year=2020 |volume=4 |issue=9|pages=1843–1846|url=https://www.cell.com/action/showPdf?pii=S2542-4351(20)30331-7 |doi=10.1016/j.joule.2020.07.013|pmid=32838201|pmc=7402366}}</ref> To estimate the [[Earth:Carbon footprint|carbon footprint]] of a given NFT transaction requires a variety of assumptions or estimations about the manner in which that transaction is set up on the blockchain, the economic behavior of blockchain miners (and the energy demands of their mining equipment),<ref>{{Cite journal |last=deVries |first=Alex |date=May 16, 2018 |title=Bitcoin's Growing Energy Problem |journal=Joule |language=en |volume=2 |issue=5 |pages=801–805 |doi=10.1016/j.joule.2018.04.016|doi-access=free }}</ref> and the amount of renewable energy being used on these networks.<ref>{{Cite web |last=Cuen |first=Leigh |date=March 21, 2021 |title=The debate about cryptocurrency and energy consumption |url=https://techcrunch.com/2021/03/21/the-debate-about-cryptocurrency-and-energy-consumption/ |website=TechCrunch |language=en}}</ref> There are also conceptual questions, such as whether the carbon footprint estimate for an NFT purchase should incorporate some portion of the ongoing energy demand of the underlying network, or just the marginal impact of that particular purchase.<ref name="De-Mattei">{{Cite web |last=De-Mattei |first=Shanti Escalante |date=April 14, 2021 |title=Should You Worry About the Environmental Impact of Your NFTs? |url=https://www.artnews.com/art-news/news/nft-carbon-environmental-impact-1234589742/ |access-date=June 2, 2021 |website=Art News |language=en}}</ref> An analogy might be the carbon footprint associated with an additional passenger on a given airline flight.<ref name="Calma" />

Some NFT technologies use validation protocols, such as [[Finance:Proof of stake|proof of stake]], that use much less energy per validation cycle. Other approaches to reducing electricity include the use of off-chain transactions as part of minting an NFT.<ref name="Calma" /> A number of NFT art sites hope to address these concerns, and some are moving to technologies and protocols with lower associated footprints.<ref>{{Cite web |last=Matney |first=Lucas |date=March 30, 2021 |title=ConsenSys launches a more energy-efficient NFT ecosystem with a project from artist Damien Hirst as its first drop |url=https://techcrunch.com/2021/03/30/consenysys-launches-a-more-energy-efficient-nft-ecosystem-with-a-project-from-artist-damien-hirst-as-its-first-drop/ |access-date=April 21, 2021 |website=Techcrunch |language=en}}</ref> Others now allow the option of buying carbon offsets when making NFT purchases, although the environmental benefits of this have been questioned.<ref>{{Cite web |last=Di Liscia |first=Valentina |date=April 5, 2021 |title=Does Carbon Offsetting Really Address the NFT Ecological Dilemma? |url=https://hyperallergic.com/634236/does-carbon-offsetting-really-address-the-nft-ecological-dilemma/ |access-date=April 21, 2021 |website=Hypoallergic |language=en}}</ref> In some instances, NFT artists have decided against selling some of their own work to limit carbon emission contributions.<ref name="Howson-2021">{{Cite web |last=Howson |first=Peter |title=NFTs: why digital art has such a massive carbon footprint |url=http://theconversation.com/nfts-why-digital-art-has-such-a-massive-carbon-footprint-158077 |access-date=April 6, 2021 |website=The Conversation |date=April 2021 |language=en}}</ref>

===Artist and buyer fees===
Sales platforms charge artists and buyers fees for minting, listing, claiming, and secondary sales. Analysis of NFT markets in March 2021, in the immediate aftermath of Beeple's "Everydays: the First 5000 Days" selling for {{Currency|69.3|US}} million, found that most NFT artworks were selling for less than {{Currency|200|US}}, with a third selling for less than {{Currency|100|US}}.<ref name="artnet">{{Cite news |last=Kinsella |first=Eileen |date=April 29, 2021 |title=Think Everyone Is Getting Rich Off NFTs? Most Sales Are Actually $200 or Less, According to One Report |work=Artnet News |url=https://news.artnet.com/market/think-artists-are-getting-rich-off-nfts-think-again-1962752 |access-date=November 19, 2021}}</ref> Those selling NFTs below $100 were paying platform fees between 72.5% and 157.5% of that amount. On average the fees make up 100.5% of the price, meaning that such artists were on average paying more money in fees than they were making in sales.<ref name="artnet" />

===Plagiarism and fraud===
There have been cases of artists and creators having their work sold by others as an NFT without permission.<ref name="Williams-2021">{{Cite web |last=Williams |first=Rhiannon |date=April 2, 2021 |title=NFT digital art: Would you pay millions of pounds for art you can't touch? |url=https://inews.co.uk/news/technology/pay-millions-art-you-cant-touch-inside-nft-digital-art-940943 |access-date=August 28, 2021 |website=inews Technology}}</ref> After the artist Qing Han died in 2020, her identity was assumed by a fraudster and a number of her works became available for purchase as NFTs.<ref>{{Cite magazine |last=Kwan |first=Jacklin |date=July 28, 2021 |title=An artist died. Then thieves made NFTs of her work |url=https://www.wired.co.uk/article/nft-fraud-qinni-art |magazine=Wired |access-date=August 28, 2021}}</ref> Similarly, a seller posing as Banksy succeeded in selling an NFT supposedly made by the artist for $336,000 in 2021; the seller refunded the money after the case drew media attention.<ref>{{Cite news |date=August 31, 2021 |title=Fake Banksy NFT sold through artist's website for £244k |work=BBC News |url=https://www.bbc.co.uk/news/technology-58399338}}</ref> In 2022, it was discovered that as part of their NFT marketing campaign, an NFT company that voice actor Troy Baker announced his partnership with had plagiarized voice lines generated from [[15.ai|15.ai]], a free [[Artificial intelligence|AI]] text-to-speech project.<ref name="nme">{{Cite web |last=Williams |first=Demi |date=January 18, 2022 |title=Voiceverse NFT admits to taking voice lines from non-commercial service |url=https://www.nme.com/news/gaming-news/voiceverse-nft-admits-to-taking-voice-lines-from-non-commercial-service-3140663 |url-status=live |archive-url=https://web.archive.org/web/20220118162845/https://www.nme.com/news/gaming-news/voiceverse-nft-admits-to-taking-voice-lines-from-non-commercial-service-3140663 |archive-date=January 18, 2022 |access-date=January 18, 2022 |website=NME}}</ref><ref name="stevivor">{{Cite web |last=Wright |first=Steve |date=January 17, 2022 |title=Troy Baker-backed NFT company admits to using content without permission |url=https://stevivor.com/news/troy-baker-nft-voiceverse-15-ai/ |url-status=live |archive-url=https://web.archive.org/web/20220117231918/https://stevivor.com/news/troy-baker-nft-voiceverse-15-ai/ |archive-date=January 17, 2022 |access-date=January 17, 2022 |website=Stevivor}}</ref><ref name="techtimes">{{Cite web |last=Henry |first=Joseph |date=January 18, 2022 |title=Troy Baker's Partner NFT Company Voiceverse Reportedly Steals Voice Lines From 15.ai |url=https://www.techtimes.com/articles/270688/20220118/troy-bakers-partner-nft-company-voiceverse-reportedly-steals-voice-lines.htm |url-status=live |archive-url=https://web.archive.org/web/20220126204741/https://www.techtimes.com/articles/270688/20220118/troy-bakers-partner-nft-company-voiceverse-reportedly-steals-voice-lines.htm |archive-date=January 26, 2022 |access-date=February 14, 2022 |website=Tech Times}}</ref>

The anonymity associated with NFTs and the ease with which they can be forged make it difficult to pursue legal action against NFT plagiarists.<ref name="huge mess">{{Cite news |last=Beckett |first=Lois |date=January 29, 2022 |title='Huge mess of theft and fraud:' artists sound alarm as NFT crime proliferates |language=en |work={{wipe|The Guardian}} |url=https://www.theguardian.com/global/2022/jan/29/huge-mess-of-theft-artists-sound-alarm-theft-nfts-proliferates |access-date=January 31, 2022}}</ref>

In February 2023, artist Mason Rothschild was ordered to pay $133,000 in damages to [[Company:Hermès|Hermès]] by a New York court, after a jury sided with the copyright holder, for his 2021 digital depictions of the brand's Birkin handbag.<ref>{{Cite news |date=2023-02-08 |title=Hermès wins landmark lawsuit over 'MetaBirkin' NFTs |work=Financial Times |url=https://www.ft.com/content/5f40179e-7124-4479-8124-df193c49c276 |access-date=2023-02-10}}</ref>

Some NFT marketplaces responded to cases of plagiarism by creating "takedown teams" to respond to artist complaints. The NFT marketplace OpenSea has rules against plagiarism and [[Deepfake|deepfake]]s (non-consensual intimate imagery). Some artists criticized OpenSea's efforts, saying they are slow to respond to takedown requests and that artists are subject to support scams from users who claim to be representatives of the platform.<ref name="TechCrunch-2022" /> Others argue that there is no market incentive for NFT marketplaces to crack down on plagiarism.<ref name="huge mess" />

* A process known as "sleepminting" allows a fraudster to mint an NFT in an artist's wallet and transfer it back to their own account without the artist becoming aware.<ref name="news.artnet.com">{{Cite web |last=Schneider |first=Tim |date=April 21, 2021 |title=The Gray Market: How a Brazen Hack of That $69 Million Beeple Revealed the True Vulnerability of the NFT Market (and Other Insights) |url=https://news.artnet.com/opinion/sleepminting-nftheft-monsieur-personne-1960744 |access-date=August 28, 2021 |website=artnet news}}</ref> This allowed a [[White hat (computer security)|white hat]] hacker to mint a fraudulent NFT that had seemingly originated from the wallet of the artist Beeple.<ref name="news.artnet.com" />
* Plagiarism concerns led the art website [[Social:DeviantArt|DeviantArt]] to create an algorithm that compares user art posted on the DeviantArt website against art on popular NFT marketplaces. If the algorithm identifies art that is similar, it notifies and instructs the author how they can contact NFT marketplaces to request that they take down their plagiarized work.<ref name="TechCrunch-2022">{{Cite web |date=January 27, 2022 |title=Web3's early promise for artists tainted by rampant stolen works and likenesses |url=https://social.techcrunch.com/2022/01/27/web3s-early-promise-for-artists-tainted-by-rampant-stolen-works-and-likenesses/ |access-date=January 30, 2022 |website=TechCrunch |language=en-US}}</ref>
* The BBC reported a case of insider trading when an employee of the NFT marketplace OpenSea bought specific NFTs before they were launched, with prior knowledge those NFTs would be promoted on the company's home page. NFT trading is an unregulated market in which there is no legal recourse for such abuses.<ref>{{Cite news |date=September 16, 2021 |title=OpenSea admits insider trading of NFTs it promoted |language=en-GB |work=BBC News |url=https://www.bbc.com/news/technology-58585342 |access-date=November 22, 2021}}</ref>
* When [[Company:Adobe Inc.|Adobe]] announced they were adding NFT support to their graphics editor [[Software:Adobe Photoshop|Photoshop]], the company proposed creating an [[Software:InterPlanetary File System|InterPlanetary File System]] database as an alternative means of establishing authenticity for digital works.<ref>{{Cite web |last=Clark |first=Mitchell |date=October 26, 2021 |title=Photoshop's new NFT button could prove you're the real digital artist |url=https://www.theverge.com/2021/10/26/22745506/adobe-nft-art-theft-content-credentials-opensea-rarible-photoshop |access-date=November 24, 2021 |website=The Verge |language=en}}</ref>
* The price paid for specific NFTs and the sales volume of a particular NFT author may be artificially inflated by wash trading, which is prevalent due to a lack of government regulation on NFTs.<ref name="Moguldom 2021">{{Cite web |last=Mwanza |first=Kevin |date=December 6, 2021 |title=New Study: NFT Prices Are Manipulated by Few with Wash Trades (Artificial Demand) |url=https://moguldom.com/384308/new-study-nft-prices-are-manipulated-by-few-with-wash-trades-artificial-demand/ |access-date=January 16, 2022 |website=Moguldom}}</ref><ref>{{Cite web |title=Traders are selling themselves their own NFTs to drive up prices |url=https://www.engadget.com/nft-wash-trading-scams-chainanalysis-report-202537095.html |access-date=February 6, 2022 |website=Engadget |date=February 4, 2022 |language=en-US}}</ref>

===Security===
In January 2022, it was reported that some NFTs were being exploited by sellers to unknowingly gather users' [[IP address]]es. The "exploit" works via the off-chain nature of NFT, as the user's computer automatically follows a web address in the NFT to display the content. The server at the address can then log the IP address and, in some cases, dynamically alter the returned content to show the result. OpenSea has a particular vulnerability to this loophole because it allows HTML files to be linked.<ref>{{Cite web |last=Cox |first=Joseph |date=January 27, 2022 |title=This NFT on OpenSea Will Steal Your IP Address |url=https://www.vice.com/en/article/xgdvaz/nft-steal-ip-address-opensea |access-date=February 2, 2022 |website=Vice |language=en}}</ref>

===Pyramid/Ponzi scheme claims===
Critics compare the structure of the NFT market to a [[Finance:Pyramid scheme|pyramid]] or Ponzi scheme, in which early adopters profit at the expense of those buying in later.<ref>{{Cite news |last=Kelly |first=Jemima |date=January 5, 2022 |title=Matt Damon's crypto ad is more than just cringeworthy |work=Financial Times |url=https://www.ft.com/content/3fac474e-aa34-439a-8bdb-32b576fe2687 |url-access=subscription |access-date=January 26, 2022}}</ref> In June 2022, [[Biography:Bill Gates|Bill Gates]] stated his belief that NFTs are "100% based on [[Finance:Greater fool theory|greater fool theory]]".<ref>{{Cite web |title=Bill Gates says crypto and NFTs are '100% based on greater fool theory' |date=June 15, 2022 |url=https://www.cnbc.com/2022/06/15/bill-gates-says-crypto-and-nfts-are-based-on-greater-fool-theory.html |access-date=June 15, 2022 |publisher={{wipe|CNBC}}}}</ref>

==="Rug pull" exit scams===
A "rug pull" is a scam, similar to an [[Exit scam|exit scam]] or a [[Pump and dump|pump and dump]] scheme, in which the developers of an NFT or other blockchain project hype the value of a project to pump up the price and then suddenly sell all their tokens to lock in massive profits or otherwise abandon the project while removing liquidity, permanently destroying the value of the project.<ref>{{cite web|url=https://www.zdnet.com/article/hackers-hijack-smart-contracts-in-new-cryptocurrency-token-rug-pull-scams/|title= Hackers hijack smart contracts in cryptocurrency token 'rug pull' exit scams |last=Osbourne|first=Charlie|work=[[ZDNet]]|date=January 24, 2022|access-date=January 24, 2023}}</ref>

==See also==
* [[Decentralized autonomous organization]]
* [[Web3]]
* William Entriken (Lead author of ERC-721)
* Deed
* [[Certificate of authenticity|Certificate of Authenticity]]
* [[Social:Title (property)|Title (Property)]]

==Notes==
{{notelist}}

==References==
{{reflist}}

==External links==

{{Cryptocurrencies|state=expanded}}

[[Category:Blockchains]]
[[Category:Cryptocurrencies]]

{{Sourceattribution|Non-fungible token}}