[PRESS RELEASE] About NFTs: Future or Fad? | DIFUSSION #66

December 23, 2021 11:57 am || By

Google Meet, 9th December 2021 — Non-Fungible Token (NFT) or NFTs for plural are popular digital assets in society nowadays. The popularity of NFTs is promoted by artists for selling their art works. Even some works have a very fantastic value, for example is Cryptopunk which its value reaches 21 billion. Because of its high value, NFTs encourage skepticism and questions from society related how it can happen.  For discussing this matter further, CfDS collaborates with UNILA in Difussion #66 taking theme ‘About NFTs: Future or Fad?’. This discussion invites Perdana Karim as research assistant at CfDS and Muhammad Naufal as an analyst at Coinvestasi and moderated by Achmad Verdi Jayanto as Business and Economy collage at Lampung University (UNILA).

NFTs: A Future or a Fad?

In the opening on his presentation, Karim defines Non-Fungible Token (NFTs) as token which represent irreplaceable value of work in various form. As an illustration is Monalisa painting whose its original work was painted by da Vinci. Despite there are lots of counterfeit of Monalisa, the value is always on the original one. Karim continues, “The value of NFTs is determined by three things, they are history, scarcity, and the potential to increase the value owned.”. Scarcity of NFT is seen as exclucivity that makes the value rises fantastically high. NFT Bored Ape Yacht Club (BAYC) is one of the example which only available for 10.000 items.

Owning NFTs is has some advantages. The use Blockchain system plays a role for abolishing middle man in the process of transactions which put service charges.  Blockchain also creates transparency of digital assets ownership so that the claim of assets has to be verified. For NFTs’ negative impacts, Karim argued that it can be subjective. This is because NFTs have the possibility for ideas theft up to NFTs creation without permission. On the other side, NFTs bring the market for selling works with high price offerings.

In context of Indonesia, Karim believes that NFTs surely can develop in Indonesia. Nonetheless, NFTs need personal data whose its protection still has necessary to be national priority. In his closing, Karim concludes that temporary of NFTs makes it as future which is not imagined before.

Introduction to NFTs: A Booming Topic in Crypto Market

As an completion of Karim’s explanation, Naufal emphasizes the meaning of fungible in NFTs which can be understood that one NFT has different value to another one. He continues the explanation related to the use of NFT as an collection, special access to community, decentralized governance of crypto, and DeFi (decentralized finance) guarantee.

Furthermore, Naufal states that NFtc can be used for saving concrete assets to be digitalized and locked in the Blockchain. As time goes by NFTs popularity in digital economy era, there are various type of NFTs. Some types of NFTs include fine arts, music, sports, games, land, and the real sector. NFT Land is a manifestation of crypto to create digital world known as Metaverse that all the assets inside are NFTs which are decentralized in a server. NFT in the real sector can be utilized to transfer conventional ownership in digital form, for example land certificates.

For closing his presentation, Naufal mentions way to prevent NFTs scam given its popularity. “A good NFT usually has a good company and marketing because of the complexity. Scams can be avoided by checking the social media activity of the company or NFT maker. In addition, liking art itself is also important so that when the value does not increase it is not considered a problem.”

In the end, Karim and Naufal agreed that even though NFT is still gaining popularity, people should not be consumed by the pleasures it offers and become afraid of being left behind. The community needs to have a mature mind as a form of protection from the negative impacts that may be caused by NFT considering its temporary nature but accompanied by a large investment value.

Writer: Septiana Noor Malinda
Editor: Firya Qurattu’ain