If you do not work in (or adjacent to) art and auctioning, you could be forgiven for never having heard of nonfungible tokens (NFTs) … at least until the past few weeks. However, a recent boom in their sale means NFTs have shattered auction records and amassed some major headlines. But what the Fabergé are they? 

First, some definitions: economists should be au fait with the notion of fungibility. Money is fundamentally fungible in that it can be swapped out and chopped up in a bunch of ways while retaining value. Two R10 notes are interchangeable. Two R5 coins are interchangeable for a R10 note. And an ounce of gold in nugget or necklace is still, largely, an ounce of gold...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now