Facebook planning to introduce NFTs as part of its Novi Digital Wallet

By Team Newsable | First Published Aug 27, 2021, 7:20 PM IST

Earlier this year, Twitter CEO Jack Dorsey sold his first ever Tweet for $2.9 million as NFT to collect cash for COVID-19 assistance.

The demand for Non Fungible Tokens (NFTs) appears to have increased with the growth of the digital arena and blockchain technology. While NFTs have been in place for over seven years, their demand began to rise in 2017. With the increase in demand, large firms joined the digital asset market to profit from the trend. The most recent addition to this list might be Facebook, rumoured to enter the NFT market as part of its Novi Digital Wallet.

In an interview with the press, Facebook CEO David Marcus hinted at the company's intention to enter the market, saying, "We're looking at the number of ways to become engaged in the area because we think we're in a really excellent position to do so."

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However, Facebook is hardly the first social media firm to dabble in NFTs. Earlier this year, Twitter CEO Jack Dorsey sold his first ever Tweet for $2.9 million as NFT to collect cash for COVID-19 assistance.

A collection of 140 NFTs from Twitter was recently auctioned for more than $5 million. The coins, which were GIFs connected to the social networking site in some manner, were sold for 1,700 ETH ($5.3 million).

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NFTs are essentially digital assets that reflect real-world items such as art, music, and in-game movies. These tokens use the same underlying software as many other cryptocurrencies and are frequently traded alongside bitcoin. NFTs, as the word 'non-fungible' indicates, are typically one-of-a-kind or have a minimal run with identifying codes. In contrast to most digital inventions, which have an endless supply, NFTs have a finite quantity. Most NFTs are part of the Ethereum blockchain at a higher level, a cryptocurrency similar to Bitcoin.

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