Whilst this is unlikely to change our fundraising overnight, NFT’s could have an impact, and so they should at least be on your radar.
What is NFT?
NFT stands for Non Fungible Token, and you can think of it as a verifiable digital certificate that you own a digital asset. With digital assets, you don’t always have a physical ‘thing’ you can touch, and so this is a substitute. You can then trade this NFT much as you would trade a real asset.
Can you give me an example?
Recently, the auction house Christie’s sold an NFT for a painting by the digital artist Beeple for over $69 million. And Twitter founder Jack Dorsey sold the first ever Tweet for almost $3 million. Various NFT sales sites offer NFT’s for as low as a few pounds, and upwards.
Is it safe?
NFTs are based on the same BlockChain technology as cryptocurrencies, and so have many of the benefits and risks. The technology is emerging, and it may be awhile before the technology reaches the stage where it is trusted (although remember that Norton includes crypto mining in its mainstream anti virus products now).
Why does it matter?
When established firms like Christie’s get involved, and sale values of £69 million hit the headlines, it’s clearly something to be aware of.
What should we do?
Likely the answer is ‘nothing for now’, but in your strategic thinking time reflect on how you might benefit in the future. One museum is already using it to raise funds, so could you adapt that model? Could you have an agreement with a digital artist, where some or all of the proceeds support the work of your organisation?