Tesla and SpaceX CEO Elon Musk brought his 2021 NFT venture back into public discourse on Wednesday, posting on X, “Whatever happened to” his earlier intentions to sell a musical non-fungible token (NFT).
What Happened: In March 2021, Musk floated the idea of auctioning one of his tweets as an NFT, which included a song about NFTs. Despite receiving a bid exceeding $1 million for this digital piece, Musk had a change of heart, stating, “Actually doesn’t feel quite right selling this. Will pass.”
The Musk tweet in question comprised a song with lyrics that reflected the NFT culture: “NFT for your vanity. Computers never sleep. It’s verified. It’s guaranteed.” The tweet was accompanied by a video clip showcasing a “Vanity Trophy,” emblazoned with “NFT” at its peak and “HODL,” a popular rallying cry amongst crypto enthusiasts, at its base.
NFTs are distinctive cryptographic tokens that serve as digital certificates of ownership for various forms of media, such as artwork and video content. Similar to tangible collectibles, NFTs can be transacted in a marketplace. These tokens operate on a decentralized blockchain platform, enabling transparent tracking of the trade, possession, and authenticity of the associated digital assets they represent. NFTs can be traded on several blockchains like Ethereum ETH/USD, Solana SOL/USD, and Polygon MATIC/USD among others.
Why It Matters: This year marked a regulatory turning point as the Securities and Exchange Commission (SEC) pursued its first case related to NFTs, framing them as potential unregistered securities sales. On August 28, the SEC accused LA-based Impact Theory entertainment firm of facilitating unregistered sales through their NFT collection known as Founder’s Keys.
2023 has been a year of the most prominent developments for NFTs. Spearheaded by software engineer Casey Rodarmor, Bitcoin Ordinals emerged in the spotlight. Rodarmor launched the initiative on the Bitcoin mainnet, presenting a fresh take on NFTs within the Bitcoin BTC/USD ecosystem, coined as “digital artifacts.”
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