Visa has purchased a ‘CryptoPunk’ this Monday for over $150,000 in Ethereum. A NFT – a non-fungible token — is a unique digital asset intended to represent a virtual object. Cuy Sheffield, Visa’s crypto leader, said NFTs are going to play a “major role” in retail, social media and entertainment.
On Monday the payment processor claimed it had purchased a CryptoPunk for over $150,000 in ethereum, one of the hundreds of digital NFT avatars. An NFT, the non-fungible token, is a unique digital asset intended to be the property of a virtual object. In contrast to Bitcoin and other cryptocurrencies, NFTs cannot be equally swapped with other NFTs.
Visa’s Big Purchase and Institutional Interest in NFTs
Visa partnered with Anchorage Digital to acquire CryptoPunk, which means that Anchorage has enabled transactions and is responsible for the NFT for Visa, Sheffield added. Visa bought it with cash from Anchorage, he claimed. Visa first collaborated with Anchorage to make payments at USDC stablecoin on Ethereum earlier this year.
Proponents argue that it makes NFTs rare and their value increases. NFTs are often compared with tangible objects such as rare trade cards and pieces of art.
Over the last 60 years, Visa has built a collection of historic commerce artifacts – from early paper credit cards to the zip-zap machine. Today, as we enter a new era of NFT-commerce, Visa welcomes CryptoPunk #7610 to our collection. https://t.co/XoPFfwxUiu
— VisaNews (@VisaNews) August 23, 2021
Several large companies have recently experimented with NFTs.
Christie’s auctioned numerous NFTs, valued a few million dollars. The auction house recorded in March a $69 million picture produced by the digital artist Beeple. In the meanwhile, NFTs have been sold by many media organizations, including CNN, The New York Times, and Fortune magazine.
But some criticism of NFTs focuses on the actual value of the token. While such tokens provide a digital ownership certificate, purchasers do not own the basic item, and Internet users may still download the item online. Some individuals even stole the work of other artists and sold it as NFTs.
What are NFTs?
An NFT is a digital asset representing real-world things such as art, music, in-game objects, and movies. They are sold online, often for other cryptocurrencies, and are usually encrypted using the same underlying software as many cryptos.
While they’ve been around since 2014, NFTs are growing more popular since they purchase and sell digital artwork.
NFTs are usually also one of a kind or at least one of a very restricted number and have unique identifiers. This contrasts sharply with most digital works that nearly always supply endless. If supply is cut off hypothetically, the value of a certain item should increase, provided that it is in demand.