The nascent market for these items marks a notable, technically savvy move by creators of digital content to engage financially with their audiences and eliminate middlemen.
Some NXT buyers are collectors and fans who show what they have bought on social media or screens around their homes. Others are trying to make a quick buck as cryptocurrency prices rise. Many see it as a form of entertainment, which includes gambling, sports card collecting, investing and day trading.
Eye-popping NXT selling prices have attracted some of the same confusion and derivation that has long haunted the world of cryptocurrency, struggling to find good use of its technology beyond currency trading. And there is uncertainty over the stability of values, as many transactions using cryptocurrency have been wildly fluctuating over the past two years.
“Many people are cynical about something like this”, Mark Andreessen, a venture capital investor at Andreessen Horowitz, said in a discussion on the social media app Clubhouse this month. But people should not buy things like sneakers, art or baseball cards for the value of their material, he and his partner, Ben Horowitz, explained. They buy them for their aesthetics and design.
“There’s a $ 200 pair of sneakers, like, $ 5 in plastic,” Mr. Andreessen said.
“You’re buying a spirit,” Mr. Horowitz said.
The market for NXT began last year, with more than 222,000 people participating in $ 250 million worth of sales, rounding up the volume in 2019, according to nonfungible.com, which tracks the market. As the epidemic in day trading intensifies with the stock market, investors look for riskier and more esoteric locations to make money, Sneakers & Streetwear For wine and art.