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What is an NFT? Here are 5 questions answered on non-fungible tokens

Louisville Courier-Journal 3/9/2022 Ben Tobin, Louisville Courier Journal

LOUISVILLE, Ky. — Unless you've been living under a rock for the past year, you've probably heard a new combination of three letters: NFT.

Party Horses is a collection of 10000 NFTs on the Ethereum Mainnet. © courtesy Party Horses Party Horses is a collection of 10000 NFTs on the Ethereum Mainnet.

An NF-what?

If you've heard the three letters but don't know what they stand for, or you've somehow never heard them recently, we've got your back.

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What does NFT stand for?

An NFT stands for a non-fungible token.

What is an NFT?

An NFT is a digital piece of art that has a unique identification code, meaning it cannot be replaced with something else.

Think about it like a rare baseball card or vintage pair of sneakers. NFTs can hold sentimental value and serve as prestige indicators for owners who in turn may sell them in secondary marketplaces.

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How can I buy NFTs?

There are dozens of NFT marketplaces, with OpenSea serving as the largest one.

To buy an NFT, prospective customers will need to set up a digital wallet and to buy Ethereum, a cryptocurrency used to pay for NFTs. One Ethereum is about $2,580, but users can buy fractions of the cryptocurrency.

How much do NFTs sell for?

That answer has varied greatly over time.

According to, an NFT marketplace tracker, NFTs were selling at a seven-day average of roughly $1,847 as of Tuesday. Meanwhile, in the beginning of the year, the average NFT sold for more than $5,000.

Some NFTs cost as little as $1. For others, you may have to break out that digital wallet: A piece called "The Merge" officially became the most expensive NFT ever sold in December 2021, when it sold for $91.8 million, as almost 30,000 people pitched in together to buy it.

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Why do people buy NFTs?

Beyond functioning as a piece of art, an NFT is "an exclusive kind of membership card to be a part of a community that also signifies your identity online," said Justin Delaney, co-founder and CEO of Louisville-based Party Horses LLC, an NFT-centered company.

"I think one of the issues that society has had over the last decade or so, a lot of the social institutions we've always had have not been living up to the standard that, like, human beings as social creatures need," Delaney said.

Contact Ben Tobin at and 502-377-5675 or follow on Twitter @Ben__Tobin.

This article originally appeared on Louisville Courier Journal: What is an NFT? Here are 5 questions answered on non-fungible tokens

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