Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about NFTs – Mary Ames, Director of Strategy

THE BIG TAKE

What’s Happening With the NFT Craze?

You couldn’t miss the cryptocurrency market downturn. Along with the global economy, the cryptocurrency market has lost historic amounts of capital. Bitcoin, the world’s leading crypto, is down nearly 70 percent from its peak price last year. The downturn has forced many companies to go bust and changed the way people understand this new form of money and value. What is it doing to the NFT market?  

A significant shift: An NFT, or a non-fungible token, is a unique digital item traded on a blockchain. It’s like a one-of-a-kind trading card that often comes as an image file. According to The Verge, “most NFTs are part of the Ethereum blockchain, though other blockchains have implemented their version of NFTs. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also keeps track of who’s holding and trading NFTs.” As part of the crypto boom last year, investors flocked to NFTs as another store of value. You could buy a unique image and hold it as a store of value similar to a piece of artwork. If you want more detail, please see our explainer on NFTs on our website. 

Will it come back? The NFT market has cooled dramatically with the general downturn in markets. According to the CryptoSlam NFT tracker, NFT sales since April have dropped by 150 percent. While the technology powering NFTs and blockchains is revolutionary, the fact is that NFTs have become asset classes just like stocks. They go up and down according to prevailing market conditions. They might be down now, but they will undoubtedly spike back up during the next rally.

QUOTE OF THE WEEK

“Anything that can be conceived of as a supply chain, blockchain can vastly improve its efficiency- it doesn’t matter if its people, numbers, data, money.”

– Ginni Rometty, CEO of IBM

OUR VIEWS THIS WEEK

The UAE at 50: At the end of 2021, the UAE celebrated its 50th anniversary. With Abu Dhabi and Dubai at the forefront, the UAE is now a pillar of an entirely new global economy. What New York and London were to the Industrial Revolution, the UAE is to the knowledge revolution. As we look to the next 50 years, the UAE has embarked on the most critical reforms in the country’s history, including a new work week structure that will redefine work-life balance in the contemporary economy. We explored all sides of this incredible landmark in this piece published by Xische.

Robotic colleagues: Can robots and humans get along in our brave new world where robotics is transforming the nature of employment? Many commentators are critical and cautious of advancements in robotics. We explore how robots are a growth opportunity for the global workforce.

SPOTTED ELSEWHERE

Cave paintings and you. Have you ever seen a photograph of a cave painting and struggled to understand its deeper meaning? Well, you might not be alone. Scientists have determined that modern humans might lack specific visual mechanisms to fully “see” some prehistoric cave art. The article argues that “superior visual perception was necessary for the creation of Paleolithic cave paintings because of the level of correct anatomical details and accurate depictions of high-speed leg positions of animals in motion, considering that the works were accomplished far removed from the actual animals and with crude tools.” What does this mean for evolution?  

CRISPR rice: We have been closely watching developments in the agricultural technology sector for years. Not only is this sector vital for the local knowledge economy, but technology is also helping solve food problems brought on by war in Eastern Europe. This article from The Verge about gene-edited rice caught our eye. Genetically modified foods have been on the market for decades but could specific gene editing solve critical problems brought about by climate change? It seems so. This is a topic to keep a close eye on.

QUICK HITS

• Was The Great Gatsby plagiarized? 

• How to be a nice person. 

• Great summer reads.

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