- It's just a cat with a Pop-Tart on its back
with a rainbow coming out of its butt. (laughs)
- (React) So, do you think it's worth half a million dollars?
- No.
♪ (playful intro) ♪
- Logan Paul. I see why he got one of these.
He's kind of a no-brainer. But Snoop Dogg? No!
Why would Snoop buy that?! - (man) Why are these
cartoon apes so expensive? - (anchor) Now, to the latest trend
that's sweeping the internet. - (anchor 2) ...so-called NFT.
- (anchor 3) They're now selling for HUGE bucks.
- (anchor 4) $69 million. - Oh my god.
- "Non-fungible token." I don't understand
what the word "fungible" means. - NFT stands for "non-figible token."
- Non-tokenable something? (laughs) - They're a little weird,
if you ask me. - And this is where people
get confused, but all non-fungible means
is that it's unique, one-of-a-kind, and cannot be interchanged.
Yes, I do know that. - (Amara) Let's use
the Mona Lisa as an example. As we all know,
the Mona Lisa is a one-of-a-kind art piece.
And imagine you own the NFT Mona Lisa.
You have the digital deed which shows that you are
the rightful owner of this NFT Mona Lisa.
And that digital deed... - Okay.
- (Amara) ...is known as a smart contract.
- (React) Is it making sense? - No. (laughs)
- No. (snickers) - (Amara) And that is why
even if other people screenshot this,
if other people try to right-click, save,
at the end of the day, you are the only one
that has this digital deed. And that digital deed
gives you license to sell. - You're the only one
who owns it, like no one else does.
- If you have a smart contract, that means you can sell it.
- So, it's just things that are online.
- (React) Exactly. - Yeah.
- They're just things that are online that people
are now buying the rights to. - (man) Could you explain
NFTs to me, but in a simple way? 'Cause I don't get it.
- (Gary) You play video games? - (man) Yes.
- (Gary) Have you ever bought skins or virtual things for your game?
- (man) Yeah. - (Gary) That's an NFT.
- (React) Have you? - Yes.
- I own skins on Minecraft. - That kind of relates to me
'cause I actually play that game. - You can buy something online
to characterize your character on Fortnite?
- (React) NFTs, or non-fungible tokens,
are basically pictures. They can be GIFs, sounds,
basically anything that lives or exists online
that you can actually buy. So, it's kind of like art
that you would see in a museum, or as she said, like a Mona Lisa.
Someone owns the Mona Lisa. - Okay.
- (React) Someone owns the art in a museum.
We can also look at it, but they're only person who owns it.
And that means that they can sell it. - Okay. So, I understand.
- If you own the Mona Lisa, everyone can take pictures of it,
but you're still the owner of it. - (React) These pictures of monkeys
are part of a collection of NFTs called the Bored Ape Yacht Club.
- Okay. Yes. - (React) Mm-hmm.
Now, these are some of the most expensive Bored Apes
that you can buy. So, look at how much these cost.
This one costs $44 million. - If I could faint on cue,
I would have. - It's like a rip-off
just to own it when you could just take a picture of it.
- (React) So, these ones, you'll notice,
are a little bit cheaper than the other ones.
- (doubtful) Uh-huh, very cheap. That's ridiculous. (laughs)
- (React) Why do you think some of these monkeys
are more expensive than others? - Sometimes, people charge people
for how much time it takes. So, maybe this one didn't take
as much time to color, draw, or paint.
- Maybe it was drawn by a famous artist?
- Because they're one of a kind.
- I'm gonna have to go with people are stupid.
- (React) Some of the people who own Bored Apes are Justin Bieber,
KSI, DJ Khaled, Logan Paul, Snoop Dogg, and many more
famous people own these. - Snoop Dogg.
- (React) Why do you think that these famous people
are buying these monkeys? - To sell them and get more money?
(chuckles) (polite applause)
- All of them are very rich celebrities,
so they can buy them. - They are more known.
If they both something like that, they'll get a lot of attention.
- (Jack) When you own an ape, it's your ticket
into the Private Yacht Club and grants you member-only benefits.
- Oh. - (Jack) You can join
their private group chat, get access to a mutant version
of your ape that's worth tens of thousands of dollars.
And of course, you get an invite to Ape Week...
- Oh. - (Jack) ...which is a week-long event
that has a party on, you guessed it... - I want in.
- (Jack) ...a yacht. - You get a yacht?
Or you get on a yacht? - (React) You get to go to a party
on a yacht. - I could probably just buy that yacht
with the amount I bought the ape for. - I see why Snoop Dogg bought one.
- I don't think it's worth it. - Eh. I would like to own a yack,
but still not worth it. - That's a lot of money
for just a picture and some group chats and to go on a yacht.
- (React) Still not worth it?
You still wouldn't-- - You just go on a cruise.
- (React) Yeah, just go on a cruise, right?!
- And I can assure you that's over 10 times cheaper than this.
- (React) All right, so like I said, a lot of people are getting
into buying these NFTs, but it's actually not just for adults
or for rich, famous people. There are actually kids like you
that are making a lot of money selling NFTs.
- That's crazy. - (narrator) This 12-year-old
made $4 million selling NFTs. - (laughs)
- (React) How old are you? - 12.
- So, I could literally just draw a picture and sell it
for a million dollars? That seems like easy money.
- (narrator) She made a collection called the Long Neckie Ladies.
She was able to sell about 962 Ethereum.
962 Ethereum is about $4 million.
- So, you buy it with Ethereum,
and then later on, you convert that into money.
- Making a million dollars for drawing.
- (React) Do you think that you could do something like that?
- No. I don't think it would be good enough for people to buy
for that much money. (chuckles) - I'm not really good
with computer drawing, just so you know.
Maybe I'll just upload my picture onto the computer.
- (React) And sell it?
- She's 12 years old with $4 million.
I would buy a castle in Scotland. (snickers)
- (React) All right, so now that you kind of understand NFTs a little bit,
let's take a look at what other NFTs are out there.
- Christie.
- Sound kind of like an Imagine Dragons song.
- Spacey. - You step inside,
and you start walking? Well, no, that's not a real person.
- It looks like a robot astronaut thingy cartoon. (chuckles)
- (React) So, this is a video sculpture piece,
and it's by one of the most famous NFT artists.
- Who? - (React) His name is Beeple.
- Beeple. - (React) Mm-hmm.
- I like that name. - (React) So, that video sold
for $29 million. - Say what now? (chuckles)
- It looks cool. But I could literally just watch it.
I don't need to buy it. - Oh yeah, I've seen these ones.
My brother has it. - Oh, that's pixel art.
- He looks like a monkey. - It's like a zombie or something.
- That looks like I could make that in two seconds.
- (React) So, this one's from the CryptoPunk collection.
- Yeah, I've heard about it. - The CryptoPunk collection. Okay.
- $11.8 million? - Whoa.
I can literally pay for college. - Who in their right mind
would like that?! - Lady Gaga? (laughs)
- That is the creepiest thing I've ever seen.
- Wha-- it's just-- - (React) It's just a GIF.
So, that one is called the Right-Click and Save As Guy.
- Right-Click and Save. - (React) This little joke
sold for $7 million. - It's not fair
because basically, you need to buy NFTs
to actually own 'em. - I don't think I'll ever buy that
in my entire life. - Ah!
- (React) Do you recognize that guy? - His name is-- he's from a show.
- Home... Homer Pepe? - Homer Simpson turning into a frog.
(chuckles) I think I've seen him before.
- A Pokemon or a Magic card. - A Homer Pepe Pokemon NFT.
- (React) Exactly, yes! That's what this is!
♪ Nyan nyan nyan nyan ♪ ♪ Nyan nyan nyan nyan nyan nyan ♪
- Wait, that's an NFT? - I saw this.
- That's the Nyan Cat! - Why would people want that?
- (React) I don't know, but someone paid
almost half a million dollars for that, for Nyan Cat.
- Year of Farts, Master Collection.
- "One calendar year of recorded farts."
Hm? - I'm glad I can't hear anything.
Oh, god. No-- - (fart noise)
- No! No! NOOOOO! (laughs) - (laughing silently)
- (fart noises) - (chuckles)
- No! How long does this go on for?
- (React) A group of friends sell their recorded farts
as NFTs. - (snickers)
- These people are crazy nowadays! - That's gonna be the new Rick roll.
That's gonna be the new Rick roll. - (React) So, Austin,
do you think that NFTs are a good idea?
- No. They're just a little-- kind of a rip-off?
- Some of them are good. Some of them are bad.
Some of 'em, a lot of people have,
and you don't really want those.
The other one of those are very legendary
and not many people have, so you want those too.
- You feel more proud if you own a picture
that you made, not someone else's picture.
Unless it's so valuable, lost from history!
Other than that, I wouldn't care.
- Thanks for watching this episode of Kids React.
- Subscribe to our channel for new videos.
- Would you buy any of these NFTs?
Let us know in the comments. - Bye.
- Bye!
Yes. - (React) Okay, why?
- 'Cause you get to go on a yacht and get invited to the Ape Club
and get invited to Ape Week! And so many reasons!