Hey, remember when Colnago announced it was auctioning off a unique non-fungible token of one of its bikes?
Well, happy days: it’s #NewBikeDay for one lucky individual. User MTD-01 has plonked down 3.2 wETH tokens for an NFT of a Colnago C64.
Oof, this is confusing. Let’s break that disaster of a sentence down …
An NFT – non-fungible token – is a unique digital asset that cannot be replicated. It is stored on a digital ledger called a blockchain which records who possesses the NFT – in this case, ownership of a rendering of a Colnago C64 in a melange of colours. A rendering that anybody is free to access and download (here it is – you’re sitting on a goldmine!)
MTD-01, whoever that is and wherever they live, emerged triumphant from a two-way bidding war and is now the owner of the rights to the image of this particular Colnago C64 (but crucially, not the image itself).
A wETH token is a cryptocurrency, and MTD-01 has paid 3.2 of them to be able to say they own the digital rendering of an imaginary bike.
According to cryptocurrency conversion rates at the time of the transaction, that equated to US$8,592 – or, about US$2,300 more than an actual Colnago C64 frameset that exists in the real world, which you can touch and look at and maybe even, heaven forbid, go for a ride on.
Good stuff. Normal transaction. Everything’s fine and humanity is definitely going in the right direction. Coolcoolcool.