Social media company TikTok is creating its first set of non-fungible tokens (NFTs) – and it’s using an Ethereum scaling solution made in Australia.
TikTok’s new NFTs will be minted using Immutable X, a platform from Sydney-based blockchain company Immutable which is designed to make transactions on the Ethereum network cheaper, faster, and more carbon friendly.
The partnership is a major coup for Immutable which last month picked up $82 million during a capital raise.
Immutable co-founder Robbie Ferguson said he was really pleased to see TikTok use Immutable X and begin exploring NFTs.
“To have one of the world’s leading social media platforms launching NFTs not only allows TikTok to support its artists and users in a defining way but also sends a strong signal for the growing mainstream adoption of NFTs,” he said.
“People will quickly recognise the huge benefits they bring.”
NFTs are digital assets that, unlike bitcoin and other cryptocurrencies, each have unique properties meaning they can’t easily be exchanged one-for-one.
The crypto market has been hot on NFTs since earlier this year when famous auction house Christie’s announced it would auction a 21,069 by 21,069-pixel JPEG containing 5,000 pictures made by digital artist Mike “Beeple” Winkelmann.
That JPEG sold for just under US$70 million.
With TikTok – which recently celebrated the milestone of one billion users – comes further proof that NFTs can be an effective alternative pathway for monetising online content.
“As the creator economy continues to grow, we're continually looking for new and differentiated ways to support our creators,” TikTok’s global head of marketing Nick Tran said.
“Now, fans can own a moment on TikTok that helped shape the internet while supporting some of their favorite creators.
“We're excited to see how our community and NFT communities engage with some of the internet's most beloved cultural milestones."
TikTok’s foray into the NFT world begins with the auction of six NFTs from TikTok creators and artists including Grimes and queer rapper Lil Nas X.
Auctions for the NFTs begin on 6 October.