Let non-fungible tokens prove their worth to us
They have been called illusory and dismissed as a fad. With the launch of an Indian NFT market, though, these tokens could overcome sceptics. And the concept does deserve a chance
Indian ownership of non-fungible tokens (NFTs) seems set to rise. On Tuesday, WazirX launched an online platform for the purchase of unique e-tokens, each designed to signify a specific object, work of art or digital creation (unlike fungible cryptos that mimic currency). Known for its crypto exchange, WazirX will price NFTs in its own digital currency, WRX, and has claimed an enthusiastic response from a wide range of creators, including visual artists, photographers and musicians, who could find buyers for tokens of their work if the company is able to make a go of this project. The NFT concept itself is yet another application of blockchain technology, which allows a widely-verifiable record of trades, and the new mart proposes to generate NFTs through the smart chain of Binance, which acquired WazirX in 2019. Sellers of their creations must reportedly part with a 5% platform commission on every sale, as with an art gallery. On each resale, though, they stand to earn a royalty of up to 15%. That creators are enthused by this idea is no surprise. But whether NFTs will click, outlive sceptics and last long enough for collectors to auction or bequeath them is not so obvious.