Twitter CEO Jack Dorsey Intends to Convert His NFT Proceeds to Bitcoin and Donate the Sale to Charity
Twitter CEO Jack Dorsey has revealed that his NFT sale will be given to charity. He disclosed on Twitter on Tuesday 10th march.
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Ending this March 21st
Will immediately convert proceeds to #Bitcoin
And send to @GiveDirectly Africa Response
— jack (@jack) March 9, 2021
On the 6th of March, @Jack offered to sell the first-ever published tweet as a non-fungible token (NFT), putting it up for sale on crypto startup Cent. Cent is an Ethereum-based blockchain service that allows its users to mint, sell, and bid on NFTs of tweets.
Interestingly enough, amid the very little knowledge of NFTs within the crypto ecosystem, Jack Dorsey’s offer to sell his tweet has been met with extensive acceptance. As of press time, the highest bid for the NFT was $2.5 million, placed by @sinaEstavi.
The auction is open until March 21 according to Dorsey, Kn his official Twitter handle, has said that he will immediately convert the proceeds of the NFT sale to Bitcoin once the auction closes. Furthermore, he plans to donate the proceeds to GiveDirectly, a not-for-profit organization working with families living in extreme poverty in East Africa.
Although the NFT industry appears to be the new goldmine, similar to the ICO craze of late 2017, not everybody is impressed by the recent activities. Earlier last week, Litecoin’s founder Charlie Lee said that most NFTs are not as valuable as most people assume.
To extensively talk about non-fungible tokens, begin by introducing the idea of fungibility, which is defined as “able to replace or be replaced by another identical item”. One might think this overcomplicates things.
To get a better sense of what might constitute a non-fungible asset, just think about most of the stuff you own. The chair you’re sitting in, your phone, your laptop, anything you could go and sell on eBay. All of these fall under the category of non-fungible things.
proving that fungible asset are the uncommon ones out. A currency is a classic example of a fungible asset. Five dollars is always five dollars no matter the serial number on the specific five-dollar bill, or whether it’s five dollars sitting in your bank account. The ability to replace a five-dollar bill with another five-dollar bill is what makes currency fungible.
Non-fungible tokens are unique units of cryptocurrencies. They are generally referred to as a digital certificate for intellectual property and are stored on the blockchain. So the owner of an NFT owns an asset, whatever a collectible, a digital art, a song, game items, event tickets, domain names, or even a tweet, when integrated into the blockchain technology becomes property of high value and the proof of ownership of that asset is solely recorded within the blockchain.