NFT (non-fungible token)

These are tokens that may never, ever be funged. And thank goodness.

Fungible tokens may be exchanged for any other and have the same value. If I send you one $CMO coin and you send me one, they will be as interchangeable as if we exchanged dollar bills.

NFTs are not so readily interchangeable though. Even if we both bought a Julius Randle basketball video clip NFT showing the same moment via NBA Top Shot, my NFT may be worth $10 and yours may be worth $5 depending on its serial number and other factors. The serial number of a dollar bill will not make one more collectible or valuable than another.

NFTs themselves tend to resemble fads in almost every way, or at least NFTs will until they become more useful. That utility could come from unlocking value, such as buying a Harley and receiving an NFT that gives you access to exclusive biker clubs, events, and merchandise. A sneakerhead may pay more for sneakers that come with matching NFTs so as to provide digital, shareable proof of ownership of the physical goods.

NFTs that more closely resemble a version of digitized sticker albums will likely fade in popularity, as will NFTs that offer no more access utility than buying a ticket on Eventbrite.

The NFT this writer most wishes for would come from Goodreads so that I can show off my collection of Library of America editions of Philip Roth novels, with the NFTs connected to my purchase history. I could then receive exclusive invites, such as an NFT-holder-only tour of the historic Weequahic neighborhood of Newark, NJ. That may be a very limited use case for NFTs, but it is a reminder that the value of NFTs lies predominantly in the beholder.