The world seems to be abuzz with these three letters now. But there are some dangers before you jump into investing in NFT.
The world seems to be abuzz with three letters lately: NFT.
While a lot of us are still grappling with what NFTs actually are, the latest headlines have been focused on a website selling NFTs as music – which the musicians never gave permission for. So how is that even possible?
In case you missed it, the website HitPiece has been auctioning off songs by various artists, ranging from huge acts like Drake to small Aussie bands – and even bands long broken up, like The Beatles.
The problem with this is, last week literally hundreds of artists whose songs are being sold on the platform took to social media to reveal that they’d never given permission for their work to be used this way. Which begs the question, what exactly are you buying with an NFT, and do you actually have any right to it?
First things first, what is an NFT?
News.com.au spoke to Brenton Tong, the managing director of privately owned financial planning firm, Financial Spectrum, to break down the NFT craze.
“An NFT is a non-fungible token,” Mr Tong said. “Fungible means replicable, or replaceable. A $50 note, for example, is fungible – one $50 note is the same as another. A painting by van Gogh? That’s non-fungible, meaning there is only one and it can’t be replaced.”
Further, an NFT could be anything digital – “a one-off, secured and verified piece of data that you can…
