Pretty, Pricy, Perilous? Demystifying Non-Fungible Tokens and Highlighting Some Key Legal Concerns

Abstract

There is currently a great deal of hype surrounding non-fungible tokens (NFT), fuelled largely by several high-profile and high-priced purchases. NFTs, which harness blockchain technology and represent digitally tokenised versions of assets, are largely misunderstood by regulators, lawyers, and even their users. Although they tend to have aesthetic and sentimental appeal, NFTs are also something of a legal anomaly. This article seeks to explain, in comprehensible terms, what NFTs are, and to highlight some of the key concerns that arise from their use across a variety of legal fields including contract, consumer, corporate, taxation and intellectual property law. It is ultimately concluded that users should, for the reasons provided, exercise great caution when entering the NFT market.