The future of Non-fungible tokens and crypto art

Financial Assets as a Flag

Going back to our point about the $50 trillion of financial asset classes, those tend to be so abstract that the average investor treats them a bit like magic. Yes, the ownership of a share of AAPL stock does grant you certain legal rights, enforceable against a regulated corporation in some particular way under some particular circumstances, tied into a Rube Goldberg machine of exchange, clearing, and settlement, backed by “cash flows” generated by the sales of a kazillion iPhones, summarized in an annual report, and so on and so forth. For most people, this is voodoo. Buying AAPL stock is like buying a Tom Brady jersey. It is popular fashion.

Meet me in the Middle

Not everything is some shared hallucination.

Crypto Collectibles as the Growth Vector

To the extent that Decentralized Finance is an attempt at re-wiring the financial machine of our abstract asset class markets, NFTs (“non fungible tokens”) and the crypto art movement is an attempt at re-wiring the financial attributes that connect to media and digital objects.

Add or Subtract

All you need to do now is watch this space with curiosity. We will see an evolution beyond the editorial crypto art galleries of today, to TikTok-like neural-network-mediated creative spaces. We will see a deep melding of NFTs with complex DeFi primitives, like tranching for quality, collateralization and staking, as well as lending, borrowing, and exchange. The creative space is barely starting to be explored. Even if the “market” crashes in USD value, the underlying technology trends will persist.

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Lex Sokolin

Lex Sokolin

Entrepreneur building next-gen financial services @Consensys @Autonofintech @Advisorengine, JD/MBA @columbia_biz, editor and artist @inkbrick