The NFT hype
The art industry is changing and is even moving into the digital sphere. This brings new opportunities and challenges, but also raises many question marks. NFTs are an especially hot topic in the industry, and NFT artworks are being sold for millions. Still, uncertainty surrounds various legal aspects.
NFTs give creators and investors the ability to sell and buy exclusively digital objects that range from paintings and gifs to songs and everything in between. But before you quit your day job to become an NFT artist, you have to know how NFTs work.
What is an NFT?
To understand the concept of NFTs and what "non-fungible" stands for, think about a EUR 10 banknote. If you lend someone EUR 10, it is sufficient if he or she gives you back any EUR 10 banknote (or the money otherwise in equivalent banknotes and/or coins). Of course, you do not expect to get back the same banknote that you gave away when lending the money. So the value of EUR 10 is fungible. However, if you give someone your pet because you are going away for the weekend, you expect that after the weekend they will not give you back just any pet, but exactly yours, because it is not easily exchangeable, i.e. your pet is "non-fungible".
Read more about the various legal aspects we examined during our self-experiment-journey in our legal insight "Let the NFT Self-Experiment begin".