The non-fungible token (NFT) market is gradually gaining steam, as Twitter chief executive officer Jack Dorsey joins the list of those who have successfully cashed out from their NFT sale.
On Monday, his first-ever tweet was sold for $2.9 million.
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The tweet which said, “just setting up my twttr”, was published by Dorsey on March 21, 2006. Bids for the sale of the tweet ended on March 21, with the first offer made on December 15.
Dorsey first tweeted a link that lists his tweet as an auction on March 5. Four days later, he revealed that the proceeds from the sales will be immediately converted to Bitcoin (BTC), and then given as a donation to a non-profit.
Growing interests in NFTs
NFTs have gained traction this year as the cryptocurrency industry keeps rising. A Unique signature is attached to each NFT, which is easily verified in the public ledger and impossible to duplicate. The buyer of an NFT automatically gains the rights to the unique token on the blockchain.
For example, the buyer of a tweet (in the case of this purchase), a meme, or an image, is not necessarily buying the content per se. Also, they don’t have ownership of the artwork and do not have the right to control its distribution. Rather, they are buying the rights to the unique token which links their name to the artwork.
The value of an NFT is based on speculation and its uniqueness. Beyond this, an NFT doesn’t have any intrinsic value. But its popularity has kept souring despite not been a physical or tangible asset.
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The platform making NFTs more popular
Dorsey auctioned his tweets on Valuable, a platform based on blockchain technology. The platform will also be auctioning the tweets by Tesla’s Elon Musk. However, Tesla’s NFT is still open for bids. The Valuables platform has made the sales of NFTs very popular, as it provides the avenue for people to sell their non-fungibles.
Dorsey’s tweet was purchased with 1630.5825601 ETH, which was valued at $2,915,835 at the time it was bought.