Will Instagram become NFT marketplace disrupter?

March 22, 2022 05:24 PM AEDT | By Sreenivas D Ajankar

Will Instagram become NFT marketplace disrupter? — Image source: Shutterstock.com

What is a Non-fungible token (NFT)?

Non-fungible tokens or NFTs are digital assets of any real object like a photo, video, audio, and even tweets. NFT has been around since 2014 and can be bought and sold online. However, NFTs gained popularity in the last few years, and Collins Dictionary gave NFT a word of the year title in 2021.

NFTs are based on blockchain technology and provide proof of ownership of any original item; because of this built-in authentication, NFTs have become very popular. Most NFTs can be exchanged using cryptocurrency like Bitcoin and Ethereum, and transactions details are stored on the public ledger.

NFTs and their uses

How to buy NFT?

Any individual can build his own NFTs collection provided he has an active digital wallet to store NFTs and cryptocurrencies. Users first need to buy Bitcoin or any other cryptocurrencies accepted by the NFT platform through exchanges like Coinbase. Once the cryptocurrency is moved to the desired wallet user can buy NFTs through platforms like OpenSea.io and Rarible.

However, users should be careful as NFTs are relatively a new concept with risk and uncertainty attached. The demand and supply equation will drive the price of any NFTs in the marketplace, and if a particular digital asset has low demand, the user may find it difficult to sell and may even have to resale it for an even lower price.

Will Instagram Become NFT Marketplace Disrupter?

UK-based businesses involved in NFT space

Many companies have shown active participation in digital assets to attract new customers and business. Most recently, music streaming platform Spotify announced plans to add non-fungible tokens to its streaming service. Also, credit card company Mastercard announced a unique raffle for its cardholders in the UK to win the company’s first NFT. In addition, many other UK-based start-ups like Realm, an open-source platform that helps artists create digital assets, raised £1.6 million in funding from investors.

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