Should you jump on the cannabis NFT bandwagon, or wait and see how it goes?
A Closer look at Cannabis and NFTs
South Park did a wonderful bit about NFTs where Butters – aka Victor Chaos – was a force that was needed to keep under lock lest the whole world devolved into chaos! The episode known as “Post Covid II” illustrated the fickle nature of NFTs and how most people who are involved with the buying and selling of the digital assets have no real clue what they are doing.
In essence, the NFT market today is mostly hot air, but the technology is a pivotal point in history that will have a significant impact on society as we know it. But for those who are completely ignorant to the idea of NFTs, don’t worry – I’ll provide some base explanation about how all of that works so we are all on the same page.
More importantly, I was interested in learning how NFTs could be used in the cannabis industry and if we will soon see more cannabis related NFTs appear on the market this year.
First thing is first…
What the bloody hell is an NFT?
An NFT is a Non-Fungible Token, which means that it is 100% unique and cannot be negotiated by substitution. For example, a fungible asset would be apples. I could take five apples, place them in a barrel full of apples, and grab five different apples which would all have the same value than the first five I grabbed.
Non-Fungibility eludes to uniqueness, in that this digital asset is one of a kind and that there is no other item that has the exact same value as it. In order to make an NFT, or as people in the industry call it “mint” an NFT is to find a platform like OpenSea, which is arguably one of the largest NFT marketplaces.
Published: January 17, 2021
Founder & Interim Editor of L.A. Cannabis News