The future of trading may be coming sooner than expected.
The New York Stock Exchange recently applied for a trademark on the word "NYSE" to establish an online marketplace for non-fungible tokens (NFTs) and cryptocurrencies, according to a report by Reuters.
While a spokesperson for the world's largest stock exchange denies it has plans to do so, the Stock Exchange's trademark application to the U.S. Patent and Trademark Office states it "has a bona fide intention" to enter the Metaverse. Should the Stock Exchanges' application be approved, it can establish an online marketplace for NFTs, cryptos, and various digital goods such as digital media and artwork.
The spokesperson also added that the Stock Exchange "regularly considers new products and their impact on [its] trademarks and protects [its] intellectual property rights accordingly."
The Stock Exchange's online marketplace would compete with crypto marketplaces like SuperRare and Rarible and NFT marketplace giant OpenSea, valued at $13.3 billion after the company's Series C funding round, per a report by TechCrunch.
How Did Cryptos and NFTS become so Famous?
According to NerdWallet, cryptocurrencies, such as Bitcoin and Ethereum, are digital assets supported by a blockchain, a technology that maintains a secure record of transactions and keeps track of who owns what.
The first of its kind, Bitcoin, was around since 2008 and was only used by a few people before. The cryptocurrency then gained popularity when its value, and the people that use it, steadily increased as time went on.
Cryptos are a popular means of payment because of a few key features. World Financial Review's article on the topic stated that low fees associated with their use, their lack of association with world governments, its potential for profit, the ease of acquisition and use, and overall security due to the blockchain protecting them.
Despite these benefits, there are also risks with cryptocurrencies due to their value fluctuating rapidly. Bitcoin was reported by CNBC to have dropped by as much as 30% on May 19, 2021, but gained "substantial ground" by the end of that day. This price volatility is bad for short-term investors as the unstable price of cryptos makes them hard to estimate when to buy or sell.
Regulatory changes and crackdowns, like China's ban on cryptos, could also affect the price.
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NFTs, meanwhile, is similar to cryptos but with a twist. Unlike cryptocurrencies, NFTs can't be equally traded with cryptocurrencies because of their unique properties, according to an article by the BBC.
NFTs have been defined by Forbes as "one-of-a-kind" digital assets that represent real-world objects such as a piece of art, music, and in-game items in video games. These assets can only be bought and sold online using cryptocurrencies.
These digital assets were around in 2014 when people realized to trade digital assets other than Bitcoin on the Bitcoin blockchain. It only gained a significant amount of media attention when a video game called "CryptoKitties" was released to the public in 2017.
"CryptoKitties" is a video game based on a blockchain that allows players to adopt, raise and trade virtual cats, which are NFTs. Since then, the word "NFT" has become a buzzword for news outlets and video game developers alike.
Even the New York Stock Exchange got into the NFT action with the entity minting its first six NFTs in early 2021, as reported by Business Insider.
However, NFTs do not come without risks. People had their money stolen or "rug pulled" when some crypto developers, such as Evil Ape, abandoned their NFT projects and disappeared with investors' money.
How To Get Cryptos and NFTs
To get a cryptocurrency, you mine for it using a mining gig with a graphics processing unit like NVIDIA and AMD or an application-specific integrated unit. The mining gig must then be connected to a reliable internet connection at all times. Finally, you would need a membership in an online crypto mining pool to begin mining.
The mining process can be time-consuming and expensive as it may take a lot of resources like electricity to get one bitcoin.
As previously mentioned, you can also buy cryptos in online marketplaces that offer them, such as SuperRare and Rarible.
NFTs, on the other hand, can only be acquired by purchasing them. However, just like with real-world items, you have to be careful of scams like rug pulls and NFTs that could put you and your computer at risk of being hacked. If the offer is too good to be true, then it probably is.
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