The company aims to “democratize” the investment market for non-fungible tokens, digital units with which unique objects such as works of art can be registered and traded in a blockchain
NFT Investments PLC (LON: NFT) is not suitable for hanging around. The company quickly established itself to, as the name suggests, take advantage of non-fungible tokens (NFTs), the latest innovation in the cryptocurrency and blockchain industry.
NFTs are tokens with which unique items such as works of art can be registered and traded on a blockchain. Existing NFTs, including the very first tweet, have already sold at auction for staggering amounts in the tens of millions.
READ: NFT Investments makes first investments in non-fungible token storage space
However, it can prove difficult for most mainstream investors to delve into the concept of NFTs on their own, let alone figure out how to invest in them.
The company wants to position itself at the interface between normal investors and the new NFT market.
According to Johnathan Bixby, the company’s chief executive officer, “Everyone is talking about NFTs, but nobody actually does”. He told Proactive that a similar trend in Bitcoin investing persisted until recently when an explosion in crypto value caused cash to flood the market.
He said that with NFTs, NFT Investments aims to accomplish what one of its previous companies, London-listed crypto miner Argo Blockchain PLC (LON: ARB), did for crypto mining to provide investors and more secure and regulated proxy You engagement in this new market.
“NFTs are pretty technical … that’s why we want to be a proxy for the NFT market. We allow investors to invest their fiat money in a regulated, audited company. The problem is that there is too much friction in this market right now. If we can take something away from that, more people can come into the market and democratize it so more people can win. “
“Anyone can invest in our stock and play in the NFT market. It’s that simple, ”he said.
The company is already seeing the fruits of its approach with investors as its initial public offering (IPO) on the Aquis Exchange in mid-April more than tripled its original fundraising target of £ 10m to raise £ 35m before float.
On the investment strategy side, Bixby said the company takes a portfolio approach that targets three different areas of the sector for returns. The first area is in the NFTs themselves, where the company aims to aggressively track creators and digital artists with large social media followers, which in turn should add value to NFTs in the marketplace. NFT Investments will take a data-driven investment approach that will enable the company to identify emerging talent in the digital art world and acquire NTFs created by that group. There is a strong correlation between a digital artist’s social following and the value of their NFTs.
The second way is to have the infrastructure and frameworks required to create and manage NFTs, specifically blockchains and their associated tokens, NFT galleries, and real assets that are critical to the functioning of the sector, e.g. B. Computer server farms. About a third of NFT Investments’ funds are invested in the infrastructure on which NFTs are based, and as with Argo Blockchain, NFT Investments efforts are focused on building sustainable and efficient means of powering blockchain technology.
WATCH: NFT Investments makes a strong debut on the first day of trading on the Aquis Exchange
The third element is creator monetization, with the company looking to work long-term with celebrities and other artisans to create and benefit from new NFTs through licensing deals. Human nature will pique interest
Looking at the NFT market itself, Bixby said that while the products themselves may seem complex, the reason for their popularity is very simple. It’s human nature.
“We [humans] have been collectors of all kinds of things since the dawn of time … we buy things as symbols of our disposable income and assets, ”he said, adding that NFTs are so important because they take on the physical concept of origin (i.e. ownership) of a valuable one Object) and bring it into digital space, drawing in those same “collector” instincts.
“This technology gave us the ability to signal digitally … It’s literally groundbreaking,” said Bixby.
He added that given that many digital natives who spend most of their time online are likely to prefer digital payments and decentralized financial technology over their physical counterparts, it makes sense that this should also create a market for digital collectibles like NFTs becomes.
Kinks are ironed out as the market matures
One of the criticisms that have been made of NFTs, given their increasing popularity, is that, unlike physical collectibles that exist in the real world, many NFTs such as tweets and digital art can be copied identically and viewed online for free. Some may say that these factors negate the whole point of collectibles, which often derive their value from scarcity and restricted access.
However, Bixby told Proactive that more and more digitally savvy people will begin to realize that ownership is clearly defined through both advertising and the blockchain, thereby maintaining an immutable record of who owns which NFT.
“It [ownership] is transparent on the blockchain … and I think we’ll get to a point where NFT marketplaces authenticate NFTs when buying … then it becomes a question of how the market rates the work itself. “
He said this is already the case with other online purchases on ecommerce sites like Amazon, where customers buy products trusting the vendor to ship the right item.
“I think social proofing will solve all trust problems. Today it’s Wild West, but it won’t always be … her [the NFT provider’s] Business models are based on trust, so they need to solve these problems, ”added Bixby.
Big plans ahead
Following its record-breaking fundraising on the Aquis Exchange and plans to be listed on the OTC market in the US, Bixby said the company will immediately pursue all three of its investment strategy.
He added that a large positive result during the company’s public listing and initial public offering was based on what he called “big institutional money,” suggesting that there is strong interest in the growth of NFTs at the higher end of the financial sector.
For now, however, the company plans to stick to its core objectives and the news should come thick and fast in the months ahead. The company recently announced its first investment by acquiring a stake in AEON, a high technology developer for the luxury fashion industry who pioneered the use of NFTs to verify products and fight counterfeiting.
“We have a lot of money to put it in the market, so there will be a lot to report,” he said.