X

This is not a paywall.

Register for free to continue reading.

We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. It’s quick, easy and will cost you nothing.



Nearly there! Create a password to finish up registering with us:


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

NFTs appeal to Generation Z investors looking for alter...

Business Maverick

DIGITAL MARKET

Non-fungible tokens appeal to Generation Z investors looking for alternative opportunities – Momint co-founder

An art piece by Turkish-American new media digital artist Refik Anadol titled 'Machine Hallucination Space: Metaverse Lot 1' at the Digital Art Fair Asia in Hong Kong, China, on 5 October 2021. (Photo: EPA-EFE / Jerome Favre)

Momint is one of a growing number of NFT-based marketplaces, the best known of which is OpenSea. These are digital platforms designed for buying and selling NFTs.

Cryptic, _cryptic_visuals on Instagram, is a 19-year-old South African visual artist who converts his art into non-fungible tokens (NFTs) and sells each piece online for up to $200. He has more than 2,000 followers on Instagram and 7,500 on the NFT platform Momint. He has no tertiary education, yet his trade has brought him financial security.

If you were born between the mid-1990s and 2010 — a member of Generation Z — chances are good that you will, at the very least, consider an investment in Cryptic’s art. Or else you may consider buying one of 1,000 NFTs related to an upcoming song from the Nigerian singer and songwriter Chukwuka Ekweani, better known by his stage name CKay, and one of the biggest stars in Nigeria’s music scene. Ownership of the song will give you rights to a portion of the streaming revenue generated by that song in the future.

You may even consider buying a Bored Ape, for an astronomical price.

“This age demographic is looking for alternative investment opportunities,” says Ahren Posthumous, co-founder of Momint. He describes Momint as a platform for creators to release their best work, build a following and earn royalties.

Momint is one of a growing number of NFT-based marketplaces, the best known of which is OpenSea. These are digital platforms designed for buying and selling NFTs. They allow people to store and display their NFTs and sell them to others for cryptocurrency or money. Some NFT marketplaces, like Momint, also allow content creators, whether musicians or visual artists, to mint their NFTs on the platform itself.

“Gen Z investors have all heard about traditional stocks, bonds, ETFs, and they don’t really get it — they are not interested. But if you talk about creators, influencers and NFTs, they are digital natives who are ingrained into this ecosystem — they get it,” he says.

The company is working with The Scoin Shop to tokenise a complete set of 1892 Krugerrands, which, he says, are the original Krugerrands. 

“Fractionalising these coins means that a new generation of collectors can get their hands on this iconic coin set.” 

It was Momint that created the non-fungible token from Nelson Mandela’s original arrest warrant, the sale of which raised R1.9-million to help fund the heavily indebted Liliesleaf Farm and Museum, one of South Africa’s foremost national heritage sites.

The company is active in Nigeria, SA, Kenya, the UAE, the Philippines, Dubai and Indonesia. Europe and the US are on the map, but these markets are more competitive, Posthumous says. 

Many think NFTs are gimmicks and predict their demise, along with the rest of the crypto industry, which is in the throes of a “crypto winter”. This is the season during which crypto prices fall and stay low for an extended period of time. Take bitcoin, which has dropped by about 55% year-to-date and is sitting at about $21,000 per coin.

This is missing the point, says Posthumous. “NFTs are not about crypto. The underlying benefit of the NFT is the smart contract — which also underpins cryptocurrencies.” 

NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFTs. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards. This information is added to the blockchain where the NFT is being managed. 

“So, for instance, CKay can release his next song as 1,000 NFTs. The owners of those tokens will get all of the streaming revenue from that song — a process that is managed by the blockchain and tracked using artificial intelligence,” he says. 

While NFTs initially gained popularity in the art world, their use case goes far beyond this. That was just the first industry that NFTs disrupted and, to some extent, it was a bubble. Posthumous sees more tangible use cases. For instance, supply chain logistics will move on to the blockchain. 

“If a company says their cocoa beans are ethically sourced, you will be able to authenticate this using NFTs and the blockchain.” 

Momint was a recent finalist and regional winner of The Extreme Tech Challenge competition. This global competition aims to empower start-ups creating tech innovations that address global challenges. Posthumous and the team are heading to the US to take advantage of the doors that the competition has opened, and to raise $2-million in funding. BM

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted