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It’s no secret that NFTs — non-fungible tokens — have taken the crypto market by storm. As fears around the broader market abound, spurred by expected rate hikes and global instability, NFTs have continued to fetch eye-popping prices.
NFT volume exceeded $24.9 billion last year, vastly eclipsing the $94.9 million the previous year, according to Statista.com. In June, CryptoPunk #7523 sold for 4,700 ETH, or $11,754,000 and in February, CryptoPunk #5822 sold even higher for 8,000 ETH, or $23,700,000. The digital artist Beeple sold a work entitled “Everydays: The First 5000 Days” via Christie Group plc (LON: CTG) for $69 million. And Jack Dorsey of Block Inc. (NYSE: SQ) and former CEO of Twitter Inc . (NYSE: NYSE:TWTR) sold the first-ever tweet for just under $3 million.
But so far, the NFT craze has been largely centered around digital works, some even generated through artificial intelligence (AI). This has drawn some skepticism — and ire — from the general public. A pixelated JPG of a monkey in a baseball cap generated by a computer seems a frivolous thing to spend serious money on for many people, and some are trying to change this.
Investment firm Invictus Capital, having provided investment vehicles in the crypto market for a number of years, is getting involved with NFTs through its NFT Lab. The Lab enables the sale of real, physical works of art on the blockchain. Invictus hopes to bring the traditional art world into the 21st century, updating the ancient practice of provenance using the power and utility of NFTs.
The Lab is launching with the Out of Africa collection, featuring the original works of 43 artists from Southern Africa.
Each work will have two kinds of NFTs associated with it: O-NFTs and P-NFTs. P-NFTs, (poster NFTs), though limited, are not one of a kind and do not represent ownership of the actual painting. They are digital representations. An O-NFT, or original NFT, is a digital certificate that grants ownership of the physical artwork.
The work of art will be held in custody on behalf of the O-NFT holder. At any time, the O-NFT holder can exercise the right to take physical delivery of the artwork, at which point their O-NFT will be marked as claimed on the blockchain.
If you’re interested in learning more about the NFT Lab, check out https://invictusnftlab.com/.
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