Visa enters the NFT market
Visa is storming the NFT world in quite an unusual style. The payments technology company has announced a CryptoPunk purchase. CryptoPunks, which are considered to be the original non-fungible tokens, is a collection of 10,000 pixel art images of, you guessed it, punks. Visa has just bought CryptoPunk 7610, one of 3,840 female punks, for around $150,000 (~£109,000).
Cuy Sheffield, the head of Visa’s crypto department, explained the purchase quite simply. He said that CryptoPunks “pioneered the NFT technology and wave of NFT commerce,” so it’s more like paying homage to the NFT sector itself, rather than making a strategic move on the market.
Visa has partnered up with Anchorage Digital, a crypto platform for major institutions, to conduct the transaction. This wasn’t their first deal too — earlier this year they worked together to settle payments in the USDC stablecoin on Ethereum (ETH).
Visa also holds other vintage pieces related to commerce, such as some of the first paper credit cards and knuckle busters, a device merchants used to record credit card transactions before the creation of electronic terminals.
NFTs will play a key role in the future of commerce
In April, CEO of Visa, Alfred Kelly, claimed the company was “extremely well positioned” in the digital asset sector. He also added that Visa had every chance to make digital currencies safer, more useful and suitable for payments.
According to Sheffield, Visa’s vision includes an understanding that NFTs will play an important role in the future of commerce. They are sure that NFTs represent the future of culture and commerce.
Sheffield compared NFTs with the early days of e-commerce, saying that “e-commerce made it possible for a small business to sell online and reach customers worldwide. But they still have to produce and ship physical goods, which can have high upfront costs. So NFTs allow a small business to harness a public blockchain to create digital goods, which can be delivered instantly to a crypto wallet anywhere in the world.”
Visa has entered the NFT world by buying CryptoPunk 7610 for $150,000 (~£109,000).
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