Billionaire investor Mark Cuban has been at the forefront of the wave of interest in blockchain technology, smart contracts and NFTs, or non-replaceable tokens.
It’s “just like in the early days of all new technology, the excitement creates some unique situations at times,” Cuban tells CNBC Make It.
Lately, NFT-based art, in particular, has been selling for hundreds of thousands of dollars at times, but according to Cuban, ” [NFT] market, it will become more efficient and the pricing will settle down, ”he says.
NFTs are unique cryptocurrency tokens used to represent assets such as digital artwork, music or movies. NFTs can be bought and sold just like physical assets, but because they run on blockchain, a decentralized digital ledger can be tracked that documents transactions, ownership, and validity of the assets they represent.
One of their great advantages is that creators can get paid when their content is distributed on the internet.
For example, if an artist lists their NFT-based artworks for sale, a buyer can purchase a unique token that represents the property and then prove the authenticity and ownership of the digital art through blockchain.
That is where the value lies, according to Cuban. “The technology is real,” he says. “The impact is real and permanent.”
Cuban predicts that NFTs will disrupt the arts, music and film industries.
[B]lockchain and smart contracts and marketplaces are here to stay, ”he says.
Recently, the “excitement” around the NFTs market has sparked record auctions of artworks – for example, last week an NFT-based video clip created by artist Mike Winkelmann, known as Beeple, was flipped for $ 6.6 million after originally purchased for about $ 67,000, while a crypto art version of the 2011 Nyan Cat meme was auctioned and sold for around $ 590,000.
In terms of sports, NBA Top Shot, an NFT platform that enables the buying and selling of short clips from popular players, has sold more than $ 280 million to date, according to the website CryptoSlam.
The music industry is also hitting the market, with bands like the Kings of Leon announcing it will release a new album as an NFT for a $ 50 token – the offering will be open for two weeks starting Friday at noon ET, and at the end there will be no more made.
As for Cuban, he’s already made money from NFTs by auctioning digital goods online, including a Mavs Suns Game Day Experience video clip. He also owns NFT-based digital assets, including a “Maxi Kleber dunk Moment” card that he considers a collector’s item and just as valuable as a physical sports card. Cuban said he wouldn’t sell, but other digital Maxi Kleber dunk sets have sold for anywhere from $ 35 to as much as $ 800 on the NBA Top Shot website, which Cuban describes as a massive innovation.
Disclosure: CNBC owns the exclusive non-network cable rights to “Shark Tank.”
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