Monica Eaton Offers Insight on the New NFT Craze
Chargebacks911 COO Monica Eaton is a world-renowned expert in payments, finance, and fraud prevention. In a recent feature by Finance Magnates, Monica was asked to share her expertise and weigh in on the new market in non-fungible tokens (NFTs) that’s made headlines in recent weeks.
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NFTs have been a trending news topic since the beginning of 2021. However, there’s a lot of confusion surrounding how NFTs work, and what they accomplish.
NFTs present the opportunity to create a verifiable “source” of digital information, like images, videos, or other files. These items can then be traded, much like a physical item. As Monica notes, this creates the opportunity for digital-only works to be commodified and used as stores of value, like a traditional work of art.
“In a way, the traditional fine art marketplace has always been a manmade bubble because we assign value based on abstract benefits, such as prestige, rarity and aesthetics and not on anything concrete,” she notes. “Two paintings could look almost identical, but one is worth millions and the other pennies. What the crypto-players have done is develop a methodology where prestige, rarity and aesthetics can be transferred to the digital world.”
