Twitter Inc. is making a foray into NFTs, or nonfungible tokens with 140 new assets that will be offered in a giveaway. The company’s account on the social media site has been taken over by NFTs with a header that reads: “I’ve stopped moisturizing because tweeting about NFTs is keeping me young now.”
The San Francisco-based tech behemoth posted seven different NFTs on the digital asset marketplace Rarible. It said that there are 20 versions of each NFT and users interested in acquiring them should show up on Rarible or Twitter’s company account.
The proposed assets will not be opened for purchase and Twitter will pick winners from those who approached the company on recommended platforms.
Twitter’s experiment with collectibles is not at all surprising given its CEO Jack Dorsey sold his first tweet as an NFT earlier this year. The sale was made through Valuables by Cent, a platform that enables its users to mint NFTs out of tweets. Dorsey’s NFT sold for 1,630 ETH, which was equivalent to $2.9 million at the time. The billionaire donated the proceeds from the sale to GiveDirectly for its efforts to fight the pandemic in Africa.
So far Twitter users have shared more than 29 million tweets about nonfungible tokens this year. The new class of digital assets became a worldwide phenomenon after digital artist Beeple, whose real name is Mike Winkelman, sold an NFT containing his artwork for $69.3 million at a Christie’s auction.
A nonfungible token represents a unit of data stored on the blockchain, which is characterized by its uniqueness. NFTs can represent photos, videos, audio, and other virtual assets. Like Bitcoin, they’re also criticized for their adverse impact on the environment. According to some estimates, a typical NFT transaction has a carbon footprint of 48kg CO2.
Many people believe that NFTs may just be a fad but the interest from platforms like Twitter suggests there might be more potential for the industry. Although Twitter hasn’t suggested that it will push further with digital assets in the future, the latest drop could be part of a testing phase to gauge user reaction.