Why people spend so much money on NFT's, according to the CEO of Tom Brady's NFT marketplace

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"First, it's about collecting"

Rosenblatt, 23, tells CNBC Make It.

"Then, it comes down to

community. Brady's co-founder,

Autograph CEO Dillon Rosenblatt,

says there are two primary reasons

people shell out so much money for

NFTs.Since then, Autograph has sold

more than 100,000 NFTs, according

to a company spokesperson, with

prices ranging from $12 to $1,500

each. The digital assets can then be

sold on Autograph's secondary

market for thousands - or

sometimes millions of dollars. A

signed Brady NFT is currently on the

market for $4 milion. A signed Biles

NFT is on sale for $100,000.Crypto

enthusiast and seven-time Super

Bowl champion Tom Brady is one of

those NFT-friendly celebrities. In April, the football star co-founded

Autograph, a Los Angeles-based NFT

marketplace start-up. The company

quickly signed exclusive deals with

athletes like Tiger Woods, Wayne

Gretzky, Derek Jeter, Simone Biles

and Tony Hawk.From a slew of

record-breaking sales to celebrity

interest, non-fungible tokens

unique pieces of data stored on

blockchain ledgers, often in the form

of digital artwork- have taken 2021

by storm. Trading volume for NFTs

surged more than 700% to $10.7

billion during this year's third quarter

alone, according to a report from

blockchain analytics firm DappRadar.

Collecting, Rosenblatt says, is human

nature: Over the years, humans have

collected everything from postage stamps and coins to baseball cards.

"There's been a love for collecting for

all of human history," he says.

NFTs could be "the next frontier of it

Rosenblatt says. That's because

NFTs aren't replicable: Their

ownership and validity can be

tracked and verified from the

moment their data gets uploaded to

a blockchain ledger. Rarity is a

valuable trait in any collector's world,

and each NFT is guaranteed to be

unique.

As for community, psychologists say

collecting is so popular partially

because it comes with a deep social

motivation. Dr. Shirley Mueller, a

neuroscientist who researches the human urge to collect, wrote in

Psychology Today last year that a

primary motivating factor for many

collectors- whether consciously or

subconsciously - is to enhance their

network of friends.

Some people, Rosenblatt says, buy

digital assets specifically so they can

become part of the NFT community.

"When somebody makes one of

those iconic purchases, the whole

space knows about it. It's the same

as somebody who buys a really

unique car in the car world,

Rosenblatt says. "In a way, it can be a

Cool flex item for the people that

value that."

Autograph encourages that sense of

Community by giving users access to

a chat group on Discord, where

buyers can talk directly with

influencers who offer branded NFTs

on the company's platform. Brady, for

example, made an appearance in the

chat group just last week.

Other top NFT marketplaces- like

OpenSea, Larva Labs or NBA Top

Shot-offer their users similar

access to private Discord chats. Put

simply, Rosenblatt says, buying an

NFT at any price can make you feel

included in the latest craze

"It's an entryway into this world," he

says.

Tom Brady on what motivates him: It

comes down to this one question NBA legend Charles Barkley: My

advisors 'don't believe in crypto

NBA legend Shaquille O'Neal explains

why he hasn't invested in crypto.

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