NFTs represent a new type of digital asset that exploded in popularity in 2021, with the NFT market growing from almost nothing in 2019 to $44 billion in value. Popular NFT collections like Bored Apes and CryptoPunks can sell for hundreds of thousands or millions of dollars. While NFTs provide a way to verify unique ownership of digital items, they also come with significant risks as unregulated investments that could lose value quickly if speculative demand declines. Major companies are also entering the NFT space to reach crypto-savvy consumers and capture sales in online marketplaces.