The hype surrounding NFTs, non-fungible tokens, is huge right now, as evidenced by the fact that at least $40 billion was spent on the NFT market last year. More and more companies, organizations and ‘crypto cowboys’ want to fish in this pond. The newcomer here is Public Broadcasting, because now it looks like PowNed wants to profit from advertising. However, the question is whether the regulator of public broadcasters allows this, at the moment the Media Authority does not know anything.
Have no idea what an NFT is? Scroll down for an explanation!
With much fanfare, PowNed’s NFT website talks about the NFTs to be released. With lyrics like ‘be the first to trade your riches on our PowNFTs’, the publicity needs to increase even more. Also, later on, the ‘opportunities’ you get from buying NFTs become even more exuberant. NFTs are regularly resold for record amounts. So there’s a chance his PowNFTs will be worth a lot more in the future and he’ll be leaving in a big Lambo soon,” the broadcaster writes.
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Thousands of NFTs
PowNed’s NFTs are not yet on the market. The question of whether the NFTs will come from the broadcaster has not even been answered yet. ‘It is a pilot campaign that is running. We want to see what our fans would think if we put NFT PowNed on the market. It is something that is typical of our target group: Generation Z and millennials,” says a spokesperson. The plan is for several thousand NFTs to enter the market. The intention is for people to buy their ‘favourite’ PowNed photos and videos as NFTs, according to the website.
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It is unclear what specifically can be done with NFTs, aside from trading them. PowNed may want to use it as a means to recruit more members, which could be done well thanks to the possibilities that blockchain with NFT can offer. “A membership to PowNed when purchasing an NFT is one option we are exploring. We have to get our membership in order every five years in order to exist as a broadcaster. This is a way to create engagement with their supporters and we’re looking at how we can link that recruitment to this.’ The broadcaster currently has no further plans with the NFTs. The spokesman cannot say what the price will be, where it will be negotiated and what exactly should happen to the proceeds. He points out that he first analyzes the “enthusiasm” of his target group before implementing the plan. Even so, the spokesperson sees sufficient reason to continue, because a large number of people have already registered on the ‘Pinklist’, the presale. Almost 1,000 people would have signed up for that presale, according to PowNed.
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Supervisor not informed
However, the question is whether PowNed can issue and sell NFTs. To do this, it is governed by the rules contained in the Media Law, which are supervised by the Media Authority (CvdM). Public broadcasters have one main task: to provide media content. PowNed’s NFTs don’t seem to fall for that.
PowNed can ensure that this media offering can be realized through ancillary activities. That would probably include NFTs, if you read PowNed’s website. ‘In addition to his own wallet, he also helps broadcaster PowNed. This way we can produce even more great content in the future! A possible astronomical mutual benefit”, it says under the title “Why buy a PowNFT?”.
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Problem: PowNed needs to get CvdM permission for NFTs, and they (yet) don’t, a regulator spokesperson told BNR. The supervisor says that he will monitor the project and include it in his ‘regular supervision’. PowNed’s spokesperson confirms that no permission has yet been sought from the oversight board. ‘We are a public broadcaster and we are bound by laws and regulations. We have to carefully figure out within which lines we can make this possible.’ So why has it already been announced that the broadcaster will introduce NFT? “We didn’t want to wait, so we did an interest survey.”
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NFT stands for Non-Fungible Token, which basically means that it is a digital object that is on the blockchain and therefore not replaceable. However, NFTs work differently in many cases. Oftentimes, it’s not so much the digital items you buy, but just the receipts you buy. That receipt contains a link to the digital object. Nowhere is it recorded what the object is like and what characteristics it has.
NFTs can be bought and sold at major trading venues, where one has to pay with cryptocurrencies like Ethereum. Often you have to pay high costs for it. The money almost always goes to the developer of the NFT if the product is resold. This fact makes it interesting for artists, who can always receive compensation for the work they have done.
Still, there are plenty of scams around NFTs. Due to the great hype at the moment, many projects are being developed to make money quickly. There is a lot of social media promotion going on for a project, which builds buzz and people want to be there quickly. If all the NFTs are subsequently sold, the team will hear nothing more and the promises that have been made will not be kept. Buyers are then left with worthless NFTs.