NFTs, what are they exactly?
I’m sure this question comes across your mind every time you read the word NFT, which is frequent especially with the trending NFT news every now and then. However, it is impossible to cover the full scope of NFTs in this piece alone, so, a brief explanation would have to do.
NFT also known as Non- Fungible Tokens are a type of cryptocurrency that appears on blockchains. They have several properties that make them unique, and the major identifier is that it is non-fungible. Fungible and non-fungible what exactly are the differences between the two.
Try to understand it like this. Fungible items include a bank note valued at 5, that can be exchanged with another bank note valued at 5. Non-fungible items include unique characteristics that make it impossible to have another item with the same characteristics. Items such as a painting, a limited first edition comic book or even your smartphone that has all your data in it.
Therefore, when individuals or companies invest in NFTs they are making items that are high in value and demand. They are items that customers would trade, and purchase for. In this case, the agency BTS is associated with, Hybe Co., decided to invest more than 400$ million dollars for NFTs.
BTS have one of the largest fandoms on earth. Listed with members from all over the world, this international sensation gained more fans when they became famous with their song DNA in 2017. It is estimated that they have more than 22 million fans that attend their concerts, watch their music videos and support them.
Therefore, is it really a surprise when their management agency decides to invest in NFT’s? They are fully aware of the impact that would have on Army’s and that their NFT items would sell at an incredibly high demand. The agency decided to invest in NFT digital photo cards that can be used on the blockchains.
They were smart in making this decision because K-Pop fans have a reputation of selling, trading and buying traditional photo cards among themselves and other fandoms. This culture has been carried out since the K-Pop agencies decided to include photo cards into their bands physical album. These photocards are usually attractive pictures of each individual member. However, each album has a random photo card, so, if you were biased to the main singer of the group and failed to get that photocard of said member, you can trade with another fan from your community who got the card.
K-Pop fans do the same with their other merchandise. These merchandise include albums, t-shirts, postcards, posters, photo books, dolls and banners. The K-pop fanbase discuss their plans and communicate with each other through social media platforms such as Twitter, Instagram and Vlive.
Since there is already a culture of trading, selling and buying photo cards, it will not be a big surprise if the BTS fans decide to do the same with their NFT digital photo cards. This, in turn, will help the agency by increasing their income and revenue exponentially.