Logan Paul, during his podcast on the 3rd of March 2021 revealed that he made an NFT purchase of CryptoPunk for $170,000. Logan Paul is a 26-year-old Youtuber and boxer who run the YouTube channel IMPAULSIVE, where he hosts his podcast. He has millions of subscribers on the platform and has been quite successful as an influencer. Logan owns six CryptoPunks that add up to $170,000 but that’s still a lot of money if you think about it, which leaves many with the question
“Why would someone spend so much money on these things?”
Well, Logan isn’t the only one doing this, but still, why would people spend such a huge amount of cash on these things, what’s so special about NFTs that would make people go crazy about them?
Well, let’s find out.
What are NFT’s Anyway?
NFT stands for Non-Fungible Token. They’ve been around for a few years now but only just came into the spotlight in 2021. A non-fungible token is a unique item that one cannot feel or touch, in other words, it’s a digital item. Non-fungible tokens are special because they are unique to the owner and no two items are the same. It is like a form of art where two works may look the same but are still unique. They are usually bought through cryptocurrencies as they are mostly run on Blockchain.
NFTs are rising assets in the digital world and there is a continually increasing struggle for them and this has driven their value up. Some NFTs now sell for as high as 10 Million dollars, and people still purchase them as assets as they are predicted to rise even higher. The highest NFT sale so far was done by Beeple an artist who put together 5000 pieces of his work and sold them at “The Historic Auction House” for 69 Million dollars. CEO of Twitter, Jack Dorsey also recently sold his first tweet as an NFT for 2.6 Million dollars in March and more sales keep on coming.
$170,000 Dollars on CryptoPunks Seriously!
NFTs are the newest digital assets and Cryptopunks are the latest NFTs to hit it high in value in the market and people are going crazy about them. But what exactly are CryptoPunks and why should you consider getting one?
CrpytoPunks are 24×24 pixel artworks created by Matt Hall and John Watkinson and were first launched in 2017. They are generated by an algorithm with each one being unique. CryptoPunks are pixelized images, and they are stored on the Ethereum Blockchain. Some of the CryptoPunk images are human, some are apes and others are aliens. Currently, there are only 10,000 CryptoPunk characters and most of these were handed out for free when they first came out but currently sell for as high as a million dollars.
CryptoPunks are valuable due to their scarcity and collectability and they cannot be altered by anyone. As more people keep trying to get them, their value keeps on appreciating and this makes them an even more valuable asset to acquire.
NFTs are the new forms of investment that you would certainly not want to miss out on, as the NFT market is predicted to grow large as the Crypto Market.
The fact that they were all given away for free or a price of just $1 makes things even crazier. However, what happened with cryptopunks is that, the artworks, 10,000 of them, some of them have a stratospheric resale value and that is what makes Crypto Punks really unique. Some of them are selling for $1,000,000 dollars and according to some of the NFT marketplaces, even if the original creator sold their artwork for $1 or even given away for free, they can still receive royalties and commission from their artwork. Meaning, it’s a win-win situation for both the Creators and Collectors.
I guess Logan wasn’t so crazy after all.