NFTs with a high historical ownership value are often created or issued by famous artists or companies with a strong brand. In an extreme scenario where the NFT loses its utility value after the associated platform closes, a highly liquid NFT remains valuable as long as there are people willing to buy and sell. In addition, NFTs have a feature you can enable that will pay you a percentage every time the NFT is sold or changes hands, ensuring that if your work becomes super popular and skyrockets in value, you will see some of that profit. NFTs can work like any other speculative asset, where you buy it and hope its value goes up one day, so you can sell it and make a profit.
Ethereum's blockchain is supposed to provide a vehicle for converting NFTs into tradable instruments, both recording digital art and, through the underlying Ether cryptocurrency, allowing NFTs to be paid out as they are traded. People are attracted to these NFTs because of their intrinsic value, as the owner of the NFT has proof of ownership on the blockchain. In addition to games, NFTs are often used to sell a wide range of virtual collectibles, such as virtual NBA trading cards, music, digital images, video clips and even virtual real estate in Decentraland, a virtual world. The purchase of an NFT also usually provides some basic usage rights, such as the ability to publish the image online or set it as a profile picture.
Some NFTs are linked to real-world objects, which gives them value in terms of tangibility backed by the immutability of ownership. Some may argue that valuation-driven price movement is negative for CLS, but speculation is human in nature and is a non-trivial part of today's financial system. Intellectual property law, for example, remains in full force and effect and will continue regardless of the ownership of NFTs. While CFNs are new, the degradation of value through the proliferation of copies whose marginal value is close to zero has a long and ignominious history.
At The Verge we are interested in what the new generation is doing, and it certainly seems that some of them have been experimenting with NFTs. The contract behind the token, based on the ERC-721 standard for creating NFTs, can be set up so that content creators continue to earn a percentage of all subsequent sales. Well, like cryptocurrencies, NFTs are stored in digital wallets (although it should be noted that the wallet has to be specifically compatible with NFTs).