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The British Museum, penguins, and a load of bull...

Pieces of Eight 01 - What do Turner paintings, penguins and bulls have in common? NFTs with no underlying ownership.
The British Museum, penguins, and a load of bull...
Disguised as a good opportunity? 

🎲 A Non-Fungible Token (NFT) collection of 10,000 bulls sold out in 32 minutes when launched backed in October 2020 and now owners are being offered a new feature that will enable them to take a gamble that either a) destroys their NFT rendering it worthless or b) makes it even more rare and valuable by adding new features.

🎣 Bloomberg reports on an NFT rebellion where the owners of Pudgy Penguin NFT's received a free egg from the creators that contained a surprise once they hatched on Christmas Day. What did they receive? An image of a fishing rod that was misspelt as 'rog'.

🤔 The British Museum is selling 20 of Turner's paintings as NFT's - those who purchase them won't own the underlying paintings.

Our Take: NFTs without ownership of the underlying item are potentially more volatile and lack the elements some collectors crave.
70% of the 400+ collectors we surveyed cited the pride of ownership as a driving factor and during further investigation 8 out of 10 were reassured by the provenance of an underlying item. What are people actually buying in the examples above if they don't own an underlying item and will it all end end in tears?

💰 A crypto group, The Spice DAO, has been shamed for spending $3m on ‘Dune’ book, mistakenly believing it had acquired the copyright to produce NFTs.

Our Take: Benefits of ownership are complex in the world of NFTs and digital collectables, mistakes can happen without extensive due diligence.
DAOs may prove a real force for good in the ownership space but collectors and investors need to select their partners very carefully.