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What’s the big deal about NFTs? Here’s the madness behind these expensive digital tokens

NFTs are selling out in minutes for thousands of dollars. We’ll explain why.

NFTs, or nonfungible tokens, can be tied to a video highlight, a meme or a tweet. But what are they? Think of NFTs as a digital asset that’s expensive but may make you a lot of money in the future (or maybe not) — similar to cryptocurrency but not quite (more below). But it doesn’t quite mean that you own an asset or piece of art (more below).

The tokens are so popular that Time Magazine‘s 4,500 TIMEPieces reportedly sold out in one minute on Wednesday’s release date. And Tiger Woods recently sold NFTs of digital autographed collectibles (more below). If you’re looking to buy an NFT, the starting price may be affordable but the bidding wars for NFTs could make the digital token worth a lot more. The interest has created new levels of hype from Visa, Warner Music Group and Nike.

In short, NFTs offer a blockchain-created certificate of authenticity for a digital asset or piece of art. If this doesn’t make much sense to you, it’s OK. We’ll break down what NFTs really are, how much they cost and how you can bid on a digital asset to have an NFT of your own.

What’s an NFT?

This is the part that takes a bit of open-mindedness. An NFT is a unique digital token, with most using the Ethereum blockchain to digitally record transactions. It’s not a cryptocurrency like Bitcoin or Ethereum, because those are fungible — exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so there’s a listing of who owns each one.

What makes an NFT unique is the digital asset tied to the token. This can be an image, video, tweet or piece of music that’s uploaded to a marketplace, which creates the NFT to be sold.

What kind of NFTs can I buy?

NFTs can be tied to any digital asset. Anything you see online can be an NFT — music, social media posts, clip art and more. Today, Sorare released its «Super Rare» Lionel Messi digital trading card that’s currently bidding at €29,992.75, equivalating to over $35,000. Sorare also announced that it raised $680 million for its next-level sports fantasy game. The funding is currently led by SoftBank.

Tiger Woods is currently thousands of digital collectibles on Autograph on the DraftKings marketplace. The collection starts at $250. Naomi Osaka, Derek Jeter and Tonk Hawk are also releasing digital collectibles on Autograph, which is co-founded by Tom Brady.

But NFTs are going far beyond sports. Recently, Fortune gave its readers a chance to get in on the NFT craze. The company sold 256 copies of the limited edition cover from the graphic artist Pplpleasr for Fortune’s August/September magazine on OpenSea. The copies sold out within five minutes starting at 1 Etherum (estimated $3,000). But the NFTs were available for resale at three times the cost.

And in August, a clip art of a rock, better known as Ether Rock, was sold for $400,000 Etherum (estimated $1.3 million). Two weeks ago, it was valued at $97,716. And in August, Visa announced its NFT CryptoPunks purchase for $150,000 in Ethereum. The financial corporation believes that NFTs play a big role in the «future of retail, social media, entertainment, and commerce.» And Vine’s co-creator, Dom Hoffman, is reportedly inventing a new way to gamify NFTs with his fantasy gaming console, Supdive.

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As the hype for NFTs grows, expect more digital assets to come up for sale and bring in some big money.

Where can I buy an NFT?

While you may not want to jump right in bidding six figures, there are multiple NFT marketplaces out there to check out, with Opensea being the biggest. Buyers can search for art, domain names and random collectibles to bid on without having to break the bank. And Woods’ digital collection is one of the many NFT collections available on DraftKings marketplace, including Tony Hawk’s collection.

And in early October, Christie’s will auction off 200 NFTs of featured Art Blocks art from its Post-War to Present collection, some of today’s most popular NFTs. The live bidding will happen in Ethereum on Oct. 1. The art sale will start at $50,000.

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On the other hand, if you want to sell an NFT of your art, you can use NFTify, the Shopify NFT store, to sell NFTs without creating your own store. You’ll also need a MetaMask account to get going. And Burberry recently announced a partnership with Mythical Games to gamify buying, selling and collecting toys as NFTs through the Blankos Block Party game. CNET’s own Chris Parker also made a step-by-step guide on how to make and sell your own NFT, in the video below.

If I have an NFT, do I own the asset?

Nope.

That’s the real kicker to understanding the whole concept. The person who buys the NFT doesn’t own the actual asset.

«NFTs challenge the idea of ownership: digital files can be reproduced infinitely and you do not (usually) buy the copyright or a license when purchasing an NFT,» said Jeffrey Thompson, associate professor at the Stevens Institute of Technology in Hoboken, New Jersey.

For example, the creator of the Nyan Cat meme sold an NFT of it for $590,000. The person who bought the token owns the token, but doesn’t actually own the meme. That still belongs to the creator, who held onto intellectual and creative rights.

What the owner of the token has is a record and a hash code showing ownership of the unique token associated with the particular digital asset. People might download Nyan Cat and use it on social media if they want, but they won’t own the token. This also means they can’t sell the token as the owner can.

Why are NFTs so expensive?

As with physical collectibles such as Beanie Babies, baseball cards and toys, there’s a market for NFTs. The buyers tend to be tech-savvy individuals who understand the idea of wanting to purchase digital goods and likely made a killing this past year with cryptocurrencies. Ethereum, for example, went from just over $100 last March to a current price of about $3,400. In some cases, buyers are just flexing their digital wallets to show off how much crypto they have, but for others, there’s a deeper interest.

«Specifically for art-related NFTs, there is a huge surge in demand due to their novelty and creativity of early artists,» Jason Lau, chief operating officer of crypto exchange OKCoin, said in an email. «Whether it’s a physical work with an attached NFT (think of it as a digital autograph and proof of veracity), or an entirely digital work (where the NFT is the art), this new medium is opening new ways for collectors and artists to explore their relationship with the artwork itself.»

It’s also great for the artists, says Lau. By selling digital art directly to those interested, an artist can begin monetizing work without having to try to sell it in a gallery.

What are the pitfalls of NFTs?

A drawback is the hundreds of dollars in fees required to create an NFT. If you’re making your own token on the Ethereum blockchain, you need to use some Ethereum, which as mentioned earlier is kind of pricey. Then after you make an NFT, there’s a «gas» fee that pays for the work that goes into handling the transaction and that’s also based on the price of Ethereum. Marketplaces simplify the process by handling everything for a fee when an NFT is sold.

There’s also an environmental cost. Like Bitcoin, Ethereum requires computers to handle the computations, known as «mining,» and those computer tasks require a lot of energy. An analysis from Cambridge University found that mining for Bitcoin consumed more energy than the entire country of Argentina. Ethereum is second to Bitcoin in popularity, and its power consumption is on the rise and comparable to the amount of energy used by Libya.

Technologies

A Humanoid Robot Visits the White House to Push AI for Teaching Kids

First lady Melania Trump shares the spotlight with a Figure 03 robot to promote the use of artificial intelligence in education.

An unexpected guest escorted Melania Trump at the Fostering the Future Together Global Coalition Summit on Wednesday: a walking, talking Figure 03 humanoid robot. 

During the event, the first lady pitched a future where AI-powered humanoid robots — presented as an idealized educator named «Plato» — provide students with personalized and instant access to human knowledge, including philosophy and art. 

The Figure 03 robot is made by Silicon Valley-based robotics company Figure AI, which introduced its third-generation humanoid robot in October last year. The Figure 03 robot costs around $25,000, according to Forbes. 

Figure 03 was designed for people to use in their homes, with demo videos showing it folding laundry, lifting eggs from a carton, using a washing machine and delivering drinks to its owners lounging by the pool. It was also shown in corporate use cases as a receptionist and a package deliverer. Using a proprietary AI engine called Helix, it can autonomously perform these tasks and respond to your voice commands. 

At the White House, the humanoid robot walked slowly down the red carpet to deliver opening remarks for the tech summit. 

«I’m grateful to be part of this historic movement to empower children with technology and education,» the Figure 03 robot said. It then said «welcome» in various languages. 

The first lady later said that AI-powered humanoid robots could be placed in children’s homes as an aid to their education to «boost analytic skills and problem solving and adapt in real time to a student’s pace, prior knowledge and even emotional state.»

Promoting AI in education

The two-day summit is hosting leaders from 45 nations and 28 technology organizations, and is intended to «empower children through education and technology,» according to a White House statement. Guests included representatives from tech giants such as Google, OpenAI, and Microsoft and the AI data analytics company Palantir.

The summit is part of the first lady’s Be Best: Fostering the Future initiative, which aims to help children learn using advanced technology. It was introduced in 2018 as an awareness campaign aimed at combating cyberbullying and helping children affected by the opioid crisis.

US Education Secretary Linda McMahon spoke about AI being one of the Department of Education’s main priorities on the first day of the summit.

«If we’re able to scale these resources effectively by investing in AI infrastructure and training, we can offer expert instructions across countless fields, to hire volumes of people at a fraction of the cost,» McMahon said Tuesday at a roundtable meeting.

According to McMahon, the Department of Education has already dedicated millions of dollars in grants to support the use of AI in schools. 

The event follows criticism of the Trump administration’s 2025 executive order to dismantle the Department of Education. While the Department of Education hasn’t been officially abolished, it has undergone significant policy changes, funding cuts and workforce reductions. 

The introduction of a humanoid robot at the summit sparked significant backlash among many who are wary of the technology’s role in the classroom. Critics took to social media to voice concerns that these machines could eventually replace teachers, stripping the education system of essential human connection, and leading to increased layoffs and cost-cutting. 

On one Huffington Post Instagram post featuring the robot, commenters expressed deep skepticism, with one user sarcastically noting, «Nice, getting rid of educators in favor of a robot,» while another flatly rejected the concept, stating, «No, I don’t want to imagine a world with emotionless robots educating our children.»

The White House did not immediately respond to a request for comment.

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Technologies

Nintendo’s $20 Switch 2 Upgrade for Super Mario Wonder Is Worth It for the Extras

Commentary: Super Mario Bros. Wonder’s Bellabel Park DLC is here this week, but it’s more about lots of chaotic multiplayer minigames than new courses.

I want a new Super Mario Bros. Switch 2 game as much as anyone, but almost a year into the console’s first year, it hasn’t happened yet. Mario Kart? Mario Tennis? Mario Party? Yes. New Yoshi game? That’s happening soon, too. And now, we have the next closest thing: The wonderful 2023 Super Mario Bros. Wonder has a Switch 2 downloadable-content pack for $20 that’s, well, sort of a new Mario game, just a week before the Super Mario Galaxy movie arrives in theaters.

I’ve been playing it for the past week, and it’s worth the upgrade if you like multiplayer Mario. If not, well, you might consider it anyway.

The awkwardly named «Super Mario Bros. Wonder — Nintendo Switch 2 Edition + Meetup in Bellabel Park» is an add-on to Wonder, but it’s really just focused on building out a whole bunch of multiplayer party modes. The new course variants and minigame challenges, while welcome, require online multiplayer or local multiplayer play to work. For most of this new Switch 2 update, you can’t play offline on your own.

The multiplayer games cover dozens of challenges and themes — some turning everyone into bouncy balls, others making everyone rush to collect the most coins. You can throw up to four players locally on the Switch 2 at home or up to 12 players online at once, and it gets busy fast. I can see screaming breaking out with kids. 

I played an hour or so of multiplayer sessions, and it was fun. But I haven’t gotten to play with lots of others online yet other than that. Still, it does feel sort of like Mario Party Super Mario Style, as opposed to Super Mario Bros. game extensions.

The DLC does have some extras you can still enjoy on your own. Seven new miniboss stages have been added into the game, featuring all of the Koopalings to take on. They’re the extended universe of Mario enemies, and each of the levels has the miniboss use a strange new power to melt the world in clever ways.

A new Toad Brigade Training Camp mode also offers up dozens of little challenge stages to beat, all remixes of existing Wonder levels. Some involve surviving without touching enemies or coins; some you have to defeat all enemies or collect all coins before time runs out. They’re addictive and hard, and I’m glad for them existing.

Nintendo also tried to add some fun extras: Bellabel park has lots of flowers you can collect by watering plants with «Bellabel water» you collect by completing tasks. And you can decorate parts of the park. It’s sort of neither here nor there for me, though, because I come to Mario platformer games to play fun levels, not decorate gardens. Pokemon Pokopia is the place for that.

Rosalina and a Luma Star are extra characters you can play with, but Rosalina doesn’t do anything truly new and the Luma Star is a co-op option. There’s also a weird Flower power-up now that turns you into a walking flowerpot, throwing flowers upward to attack enemies or hit blocks. It was OK. It’s not my favorite new extra.

Maybe that’s what feels missing here: Wonder threw all sorts of wildcards out into the game, from new enemies to strange Wonder Seeds that transformed levels. Bellabel Park feels more like a multiplayer-focused remix than a bunch of new single-player whimsy. 

I like the multiplayer games on tap more than I liked the Switch 2 add-on for Mario Party Jamboree. They’re probably worth it if you’re a Switch 2 owner with a big family or lots of friends who want to play. 

And even though I appreciate the resolution boost to the graphics, the Switch 2 graphics upgrade is hard to spot since the game’s «older» graphics have a retro look that still looked great before the upgrade (to me, at least).

What I really want, of course, is a truly new Mario game. Who doesn’t? That’s not on the table yet. But maybe, just maybe, Wonder’s Switch 2 pack is a little appetizer before that news eventually comes. But as revamped Switch 2 game editions go, Wonder’s extras are the best yet and turn this game into a truly multiplayer-rich bunch of fun.

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Technologies

Verum Finance — the future of digital payments

Verum Finance — the future of digital payments

Virtual Verum Finance cards can be linked to Apple Pay and Google Pay, giving users seamless access to in-store payments, online shopping, hotel bookings, flight purchases, and more worldwide.

The cards work globally, enabling payments without geographic limitations while providing a high level of security and full control directly within the app.

Issuing a card takes just a few minutes and does not require switching to third-party services — the entire process is handled within Verum Messenger.

Users get a unified solution for communication and finance: from messaging to managing payments and digital assets in one application.

Download Verum Messenger, get your Verum Finance card, and start using it today.

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