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Dazzling sales of NFTs have made the news over the past year, but each sale comes with a huge caveat: You’re buying a link to a file on someone’s server, and that link could change. We’ll take a look at why NFTs work this way and how it might come back to haunt NFT owners in the future.
What’s an NFT Again?
NFT stands for “non-fungible token.” Non-fungible basically means one-of-a-kind. An NFT is a unique piece of code on a blockchain that you can own, and often that code points to works of art such as illustrations, photographs, or videos.
NFTs have been in the news a lot lately, especially thanks to celebrities showing off their Bored Apes, which are a type of digital collectible art. They’ve sold for eye-popping sums of money, inviting financial speculation that goes hand-in-hand with the largely unregulated cryptocurrency market.
RELATED: What Is a Bored Ape NFT?
NFT Art Isn’t Stored on the Blockchain
With all the money being paid for NFTs, it might come as a surprise to learn that the artworks represented…
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