NFT Town - The fast-growing market for nonfungible tokens, or NFTs, is creating a big impact in Los Angeles.
Two years ago, few were even familiar with the concept of NFTs.
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The fast-growing market for nonfungible tokens, or NFTs, is creating a big impact in Los Angeles.
Two years ago, few were even familiar with the concept of NFTs. Yet sales of NFTs last year reached nearly $25 billion, according to market analyst DappRadar. That was up from less than $100 million a year earlier.
An NFT is a type of cryptoasset in which each token is unique and therefore isn’t “fungible” in the way Bitcoins are all worth the same amount. An NFT is typically attached to a specific digital asset such as a virtual trading card, a video clip or digital art, and acts as a kind of certificate of authenticity. NFTs are bought and traded on a digital ledger called a blockchain.
Some of the industry’s explosive market growth is being driven by Los Angeles-based businesses – and many of those companies are forming strategic connections with artists, entertainment companies and brands to bring Hollywood stars and franchises into new virtual spaces.
Dave Broome, chief executive of Century City-based Orange Comet Inc., transitioned directly from Hollywood into the NFT business. Co-creator of reality show “The Biggest Loser” and head of Twenty Five/Seven Productions, Broome launched Orange Comet alongside a team of founders that includes pop icon Gloria Estefan, musician and producer Emilio Estefan and former National Football League star Kurt Warner.
Broome said when he first began learning about NFTs, he found that most of the products being sold and traded were unexciting pieces of digital memorabilia lacking in imagination and production value.
“I said, ‘Look, let’s try this,’” said Broome. “Let’s take the Hollywood approach and bring cinematic storytelling into the world of digital collectibles.”
Through partnerships with AMC Networks Inc. and Pow! Entertainment Inc., the company has already unveiled NFT collections themed around “The Walking Dead” and comic book hero Chakra the Invincible.
Broome said the “Walking Dead” NFTs in particular illustrate the company’s approach to the technology. The line of collectibles includes glossy images and video files which give owners access to future “drops,” in which rare collectibles will be offered for sale. Some of these files include original cinematic material connected to characters and scenes from the show.
“It looks like a film or television production at a very high quality,” said Broome.