Visa NFT does not buy art, but because its customers are interested in it

Visa announced that it has purchased CryptoPunk NFT. The company’s arrival in the sector sends a strong signal: the institutional players clearly want a piece of the market.

Exciting things rarely happen on Visa’s Twitter account. Above all, we find communication extremely important big companysome advice for corporate Visa clients, Forbes ratings … And then, on August 23, 2021, some unexpected news caused a stir in the timetable Twitter: Visa bought NFT.

NFTs are Irreplaceable icons, non-replaceable tokens in French. It is based on the Ethereum blockchain, and allows file authentication. This technology makes it possible to create certificates of authenticity or ownership online, registered on the blockchain – and it has made possible the emergence of a true virtual art market.

Visa decided to invest in this market by purchasing NFT for approximately $165,000. strange ? not exactly.

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NFTs are rapidly gaining popularity.

Over the past 60 years, Visa has built a range of historic business objects – from paper credit cards to early payment terminals. Today, as we enter a new era of commerce in NFT, Visa welcomes CryptoPunk #7610 to its portfolio. ,” the company explained in a tweet.

So Visa offered itself NFT, for a modest sum of 49.5 ETH, or just over €141,600. In addition to the news, Visa accompanied her tweet with a document explaining the company’s vision in the virtual art market, but above all
From a special NFT buying guide for its clients, which explains how to earn income from it.

NFTs are rapidly gaining popularity Coy Sheffield, Head of Cryptocurrency at Visa, said in the document explaining the company’s position. ” In August alone, they generated $1 billion in sales […] To help our clients and partners invest, we needed to know how to buy, hold and profit from NFT. So, it’s not really in the art of buying their own Visa CryptoPunk, but for financial motives, and so much more.

More broadly, Visa’s interest in NFTs shows that the payment systems giant is increasingly interested in cryptocurrencies. As more and more institutional players position themselves in this sector and allow their users to directly purchase Bitcoin and other cryptocurrencies, Visa wants to be in the race. The company announced accepting US dollar coin payments in March, and announced a partnership with 50 crypto exchanges in July. NFTs are an additional indication that the company really intends to establish itself in this sector.

NFT market is not dead

We mainly heard about NFTs last March, when several sales hit records one after another. Since then, they have gradually disappeared from the news. However, the NFT market is still far from dying: it is more active than ever. Data from the specialist website Nonfungible shows that trading volumes reached a new record this month, surpassing the level recorded in May, reaching $896 million.

The success of NFTs has always been driven by the success of collectible tokens, especially with CryptoPunks, a collection of 10,000 unique characters, or basketball game “moments” sold by the National Basketball Association. But the still very active market for “NFTs” shows that buyers’ interest does not stop at collectibles, but rather a long-term interest. The arrival of Visa will certainly reinforce this trend.

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NFTs from cryptopunks // Source: Larvalabs

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