After weeks of teasing his designs on Twitter, entrepreneur Gary Vaynerchuk announced on Wednesday that he was launching his first NFT collection, “VeeFriends,” a series of 10,255 character tokens available for purchase through the ethereum cryptocurrency. .
Non-fungible tokens are a type of digital asset created to track ownership of a virtual item using blockchain technology. These unique items could be works of art or sports trading cards – a market Gary Vee got acquainted with as a teenager, selling baseball cards for thousands of dollars every week.
The leading investor in Facebook, Uber and Coinbase said each token will include a “smart contract” with metadata that it can use to interact with buyers. Vaynerchuk plans to do this through an annual trade event, “VeeCon”, to which token holders will have exclusive access for three years after purchase.
Tokens can be auctioned through a Dutch auction, which allows any investor – institutional or individual – to place a bid at a certain price without knowing what others are offering to pay.
NFTs have grown in popularity this year, along with an increase in the value of digital currencies, like ether and bitcoin. The market is growing rapidly, with some digital collectibles being sold for millions of dollars.
Twitter CEO Jack Dorsey sold the very first tweet for more than $ 2.9 million on the “Valuables” platform operated by blockchain company Cent. Christie’s auction house solicited bids for a virtual work by artist Beeple, which ultimately sold for $ 69 million.
CNBC’s Jim Cramer said he recently used bitcoin to pay off a mortgage and first bought ether to bid on NFTs auctioned by Time magazine. “I have a lot of ether,” Cramer said on “Squawk Box” Tuesday.
Ether, the digital coin linked to the ethereum blockchain, hit an all-time high of $ 3,456.57 on Tuesday as the cryptocurrency continues a rally that has seen its price rise by more than 350% this year.
“When I saw this human macro trend, the only way I could help others understand it was to be a part of it,” Vaynerchuk said in a statement announcing his NFT plan. “I know that NFTs will be there for the rest of my life, and I will actively consult, invest and advise in this space.”
VaynerMedia CEO thinks small businesses should see NFTs as a huge opportunity.
“I think everyone in small businesses is going to learn that NFTs are a way to make memberships, clubs and discounts,” Vaynerchuk said at the CNBC Small Business Playbook virtual event on Tuesday. “Just as a lot of small businesses made apps on phones ten years ago, I think NFTs will be part of small business strategy going forward.”
Vaynerchuk said a portion of the revenue generated from token sales will go to charity, and five tokens include access to a “scholarship” that allows the holder to learn from the CEO of VaynerMedia and his professional network. In addition, contributions will be made to DAOs (Decentralized Autonomous Organizations) to offset the environmental impact of crypto mining.