The BIG Difference Between NFTs and Crypto
Where do NFTs separate from cryptocurrency?
Short answer: Crypto = monetary asset. NFTs = cultural assets.
That's a bit vague...let's try that again.
Longer answer: Cryptocurrency is bleeding into the monetary system, while Non-Fungible Tokens are permeating culture.
Still a bit off...third time's a charm.
Longest answer: Cryptocurrency fits snuggly into one big market niche (financial technology) - while NFTs can fit themselves into a broad range of market niches across the cultural landscape.
E.g. Gaming, art, fashion, music, sport, etc.
Why? Because NFTs can be branded, while fungible tokens cannot.
The Nouns project is a perfect example of an NFT series that has figured out a way to fit itself into different cultural niches/mediums.
Here's how it works:
Every day a new Nouns NFT is created and sold, with 100% of every sale going to the Nouns DAO treasury.
(Which is currently holding $45.55M worth of ETH).
And holding a Nouns NFT grants you membership to the DAO.
If you have an idea, and want funding, you can pitch it to the DAO, and have members vote on whether or not an idea should get funded - with every funded idea growing the Nouns brand just a little bit more.
And so far, the Nouns DAO has funded a wide range of projects, across a broad cultural spectrum, including:
A fashion show at NFT Paris last weekend (see last article)
Or giving out prizes to folks who perform random acts of kindness
It's all equal parts weird and wonderful.
