NFTs popularity explodes while the crypto markets bleed

The market for NFTs has surged to hit $2.5 billion in sales by June 2021.
Alibaba-owned South China Morning Post announced its "ARTIFACT', a metadata structure to tokenize record accounts of history and historical assets as NFTs.
Nifty's Inc. has partnered with Warne Bros. to create a social NFT platform for artists and potential buyers.

Non-fungible tokens (NFTs) have become increasingly popular, and sales volumes on NFT marketplaces have soared higher in the first half of 2021. More brands are jumping in on the NFT craze, and in China, tech giant Alibaba is leading the adoption of this trend.

E-commerce giant Alibaba drives NFT adoption in China

Earlier today, the South China Morning Post (SCMP) announced its 'ARTIFACT' Litepaper. The Alibaba-owned firm believes that factual accounts of history and authentic historical assets should be made immutable by using blockchain technology.

In an effort to make history discoverable and allow individuals to connect with it in a meaningful way, SCMP has tokenized its 118-year-old collection of media assets as NFTs. The litepaper is a shortened version of the team's plan to launch ARTIFACTS. SCMP plans to create a Decentralized Autonomous Organisation (DAO) to decentralize the governance of this project in the long term.

The ARTIFACT project is not the first time the owner of Alibaba, Ant Group, is dabbling in NFTs. When Italy scored a win in the 2020 European Cup, the team took home the first NFT trophy in the history of the world. Simultaneously, Alipay, an affiliate of Alibaba and the tournament's official partner, distributed the same digital trophy to 1600 users who won their European Cup Quiz.

Chinese social media has raised concerns regarding the increasing popularity of NFTs when cryptocurrencies and Bitcoin mining are under scrutiny from authorities. However, Antchain, another subsidiary of the Ant Group, specified how NFTs differ from cryptocurrencies. Since NFTs are supported by the actual value of digital goods, music, art, or video and do not have currency attributes such as payment functions. There are no guidelines for their exchange or development as digital commodities in China.

Ant Group subsidiaries are not alone in the NFT craze. Warner Bros. has joined the list with its latest partnership with Nifty's Inc. The two companies are looking forward to developing their own social NFT platform.

Nifty's Inc. and Warner Bros. join forces

Nifty's Inc. is a Miami-based NFT-focused social media platform, the first of its kind, and it has announced its partnership with Warner Bros. to launch Space Jam characters.

“Space Jam: A New Legacy” is a 2021 American live-action/animated sports comedy film sequel to the 1996 movie Space Jam. The movie stars Looney Tunes characters now available for sale as collectible non-fungible tokens on Nifty's Inc.

The partnership with Nifty's Inc. makes it a memorable release with several characters available as collectibles on the platform. The two companies plan to create a new social NFT platform for potential buyers, and there is a potential investment of $10 million from industry giants.

With prominent use cases like NFTs of Space Jam characters and the 2020 European Cup trophy, NFTs' popularity tests the limit of its mainstream adoption. Companies in the entertainment, gaming, media, and sports industry are in on the trend; it is likely that with more centralization in NFTs, traditional financial institutions and tech giants may follow suit.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.