How to know there's too much money sloshing around?
Tesla CEO Elon Musk is selling a digital song about NFTs (non-fungible token) as an NFT.
I’m selling this song about NFTs as an NFT pic.twitter.com/B4EZLlesPx— Elon Musk (@elonmusk) March 15, 2021
The announcement comes weeks after Musk 's girlfriend, Claire Boucher (aka Grimes) sold $5.8 million in NFT art in under 20 minutes, which was followed by a $69.3 million sale by crypto artist Mike Winkelmann (aka Beeple) at Christie's.
What exactly are NFTs? As we detailed previously, to the extent that Decentralized Finance is an attempt at re-wiring the financial machine of our abstract asset class markets, NFTs (“non fungible tokens”) and the crypto art movement is an attempt at re-wiring the financial attributes that connect to media and digital objects. To try and explain the rationale behind NFTs, we wrote the following:
The Mona Lisa is original and valuable. A poster of the Mona Lisa is not valuable, despite being nearly identical in visual information. A reproduction of the Mona Lisa, even if perfect stroke-for-stroke, is similarly not valuable, because it is not the original. Therefore, the art is valuable not for its collection of particular atoms in some particular order, but for its historical and social context. Recreating the object does nothing, because it does not contain the same social history.
With digital NFTs, the same logic is true. Just because you have an identical JPEG to the one anchored to the blockchain, does not mean you have an original worth anything, nor does your ability to look at it suggest anything from a collectible point of view. Owning the original means you own its particular history and meaning in the community. This is why the original CryptoPunks have sold for a cumulative $43M, as a piece of history of the first generative NFT collection on Ethereum.
There's so much money sloshing around the system we've had to invent new asset classes (crypto, SPACs, art and music NFTs, meme stocks, sneakers, sports highlight videos, etc) to absorb it all.— John Arnold (@JohnArnoldFndtn) March 14, 2021