A comparative study of NFTs and FTs: understanding their place in the future of investment

Abstract

This study is mainly indicated towards the emergence of non-fungible tokens (NFTs) as the new digital asset for investment. A comparative analysis is made between NFTs and the fungible tokens (cryptocurrency). It is observed that NFTs are highly volatile in nature, yet safer way to invest as it is secured by code, which cannot be easily hacked by scammers During the COVID-19 Pandemic, digital investments have become a trend among the crypto investors. It was a great alternative for the fungible investors. In today’s technological aided society, digital investments have become very common and is investors find it more convenient. Investment in the NFTs and FTs is more of a status symbol for the higher class of society. The future of NFTs is very diverse and endless. The scope of NFTs is very much diverse in the gaming sector and also in the real estate sector. The study stated that the major difference between both the assets is the uniqueness of each NFTs, whereas all the FTs are similar in nature. The digital asset is defined as something which holds value, has ownership and is discoverable on the digital platform. Lastly, the study discusses the various digital assets which include the stablecoins, utility tokens and security tokens.