Recently a friend suggested to me to use NFT on numismatic, it suddenly makes me realized the potential of its usage in the Numismatic market.
What is a non-fungible token (NFT)?
A non-fungible token (NFT) is a special type of cryptographic token which represents something unique; non-fungible tokens are thus not mutually interchangeable. This is in contrast to cryptocurrencies like bitcoin, and many networks or utility tokens that are fungible in nature.
NFT token can use to prove authenticity and ownership of a collection.
Current Problem in the numismatic market
Currently, there are scammer using rare banknote/coin pictures that belongs to other people to scam. It is hard to know whether the seller on the internet is a genuine owner.
The other problem is the counterfeit collection. It is hard to always find a third party like an experience numismatic dealer to go and authentic the collection.
Even Graded banknote/coin can be Counterfeit. While I myself does not experience it before, there were cases where a rare Graded counterfeit basketball card that supposed to only have one in the record later found out there are 2 copies. Both owners came together to check but unable to determine which is the real one.
Another issue is ownership. Once a collection got stolen, it is hard to prove ownership. With NFT, the owner can use this to prove their ownership should the stolen collection is recovered.
How will non-fungible token (NFT) change the market
I will use unique.one site as an example because I plan ot use their site to test this theory.
You can check out their site by visiting this link
Link: https://uniqueone.medium.com/
If unique.one NFT is used in the numismatic market, every legit side except the scammer will benefit from it regardless of the auction house, the grading company, dealer, or the collector.
The auction house, dealer and grading company will be able to earn royalty from every NFT they create for every collection they verify. While normal people can still create their own NFT, but people or companies with higher reputation will have an advantage.
The collector will have NFT to prove their ownership when they sell on unique.one site or proof should the item is stolen and later found.
Transaction for high value will likely be done in auction or face to face with NFT hand in hand.
Which type of numismatic collection can use NFT?
I believe Graded banknote, Graded coin, and non-graded banknote with Serial number can use NFT. Non-Graded coin and non-graded banknote without serial number can’t be used for NFT as it is hard to identify whether the collection is the same as the photo.
My Final Thought
The idea is good but it is hard to tell will it work. I will attempt to do this experiment by selling all my collections with NFT attached to it at unique.one site. I will use unique.one to test if this theory can work or not.
If this test works out, it will likely take another 2 to 3 years or longer to adopt this technology.
Good point ! Can keep us updated should u explored successfuly