What is NFT?
A blockchain token proving ownership of a unique digital item.
An NFT — non-fungible token — is a blockchain entry proving ownership of one specific thing, in contrast to coins where every unit is interchangeable. The technology is a genuine ownership registry; what filled it during the 2021–22 mania was mostly speculative digital art, and the vast majority of those collections have since lost nearly all their value.
Separating the layers helps: tokenised proof-of-ownership is a real tool (event tickets, game assets, registries), while "this JPEG will be worth more later" was a trade — and one with a brutal base rate. NFT markets were also notorious for rug pulls and wash-traded volume, so historical price charts from that era deserve deep suspicion.
For Australians, the ATO treats NFTs like other crypto assets: CGT on disposal, with the same record-keeping obligations.
See it in practice
Related terms: Ethereum · Rug pull · Gas fees · full glossary
FAQ
Do NFTs still matter?
The speculative art market largely collapsed, but the underlying mechanism — a transferable, verifiable ownership record — keeps finding quieter uses in gaming, ticketing and registries. The technology outlived the mania.
If I buy an NFT, do I own the artwork's copyright?
Usually not. You own the token, and whatever rights the project's terms actually grant — often just personal display. Copyright stays with the creator unless explicitly transferred.
General information only, not financial advice. Definitions are maintained in our fact database and reviewed with the daily rebuild.