Due Diligence for Non-Fungible Token Transactions…

Michael D. Moberly, Principal, Founder kpstrat – A Business Intangible Asset Strategy – Risk Mitigation Collaborative and Business Intangible Asset Blog – A Reliable Source for Business Things Intangible Since 2006

As a business intangible asset strategist and risk mitigator, I broadly characterize the NFT space as an extension, or variation of the intangible asset side of business economics, development, monetization, and operation, wherein…

  • 80+% of most businesses, irrespective of sector, size, stage, location, product, or service,
  • valuation, competitiveness, revenue generation capability, and sustainability lie in – emerge directly from particular-sets of intangible-non-physical assets, which converge as attractive and lucrative business operating cultures.

 Unfortunately, in today’s NFT market space, ala offering-selling-buying valuable intangible tokens (assets), invariably include some conventions of transaction execution from previous eras dominated by tangible-physical assets in which speed (of execution) inhibits voices advocating due diligence specific to the (dominant) intangible asset components of a transaction.

I encourage the closure of every transaction be contingent on executing (pre – post) ‘intangible asset specific due diligence’ because business things intangible will always be in play and at risk.

In planning – conducting intangible asset specific due diligence, I advocate particular attention be directed to unraveling, in this instance, NFT’s, ala the intangible which contribute to – underlie the valuation, i.e., sustainability, transferability of same, and potential challenges – risks (i.e., vulnerability, probability, and criticality) to an NFT’s authenticity, reputation, and valuation.

Please consider how the following converge as a NFT….once upon a time, Motorola and Bell Labs were simultaneously engaged in competing projects to develop what would become known as the ‘cell phone’.

  • the Motorola team was the first to successfully execute a call, using their cell phone.
  • the actual device from which the first call was made still exists, however,
  • the case housing the device and its internal mechanism are held separately by two contributors to the Motorola (cell phone development) team.
  • these (two) tangible – physical components, when re-joined, could symbolize – constitute a potentially valuable and durable NFT.

Readers may find it informative to conduct a ‘speculative due diligence’, as a prospective buyer of this Motorola cell phone and consider any qualifiers that should be in play relative to ensuring the authenticity and stability/sustainability/duration of this device’ valuation post sale.

NFT Overview…

We are obliged to recognize ‘non-fungible’ translates as things which we presume are – can be attractive, sellable, and transferrable. NFT’s are generally privately held and characterized as being authentically unique and therefore, less receptive to counterfeit, infringement, challenge, or replication.

Non-fungible tokens (NFT’s) are authentically unique-nuanced, and generally privately held and un-replicable one-of-a-kind. The NFT holder, seller, and prospective buyer (market space) presumes the NFT to be a valuable (intangible) asset.

NFT’s can exist individually and/or collectively in various physical and digital forms and contexts, e.g., a mark, sign, work-of-art, symbol, coin, domain name, personal keepsake, souvenir, portrayals of fashion, an essay, article, or ticket/coupon to a virtual event, etc.

NFT’s are not limited to illustrative works, e.g., Jack Dorsey’s first Tweet.

NFT’s, with authenticated attribution to a notable holder, event, act, and/or circumstance of import, can energize their attractivity and valuation (asking price).

In NFT (sell-buy) arenas, attention is correctly drawn to specific intangibles which the NFT embodies and monetizing same.

Readers are encouraged to recognize this post (@ Business Intangible Asset Blog) represents reliable perspectives – contexts to compare – contrast business things intangible to present day + on-the-horizon NFT transactions.

This post, and each post published @ Business Intangible Asset Blog, is developed, researched, written, and published entirely @ the experienced hand of Michael D. Moberly.

The ‘Business Intangible Asset Blog’ is experientially researched, written, and produced by Michael D. Moberly (since 2006 – over 1100 long form posts) to provide readers (business leaders, management teams, boards, and investors) with reliable perspectives and nuanced insights to distinguish, value, and safeguard particular – business things intangible designated as mission essential.

Divi Real Estate Agent | Luxury Properties


1234 Divi St. #1000, San Francisco, CA 94220

Phone Number

(255) 352-6258

Business Hours

24/ 7 / 365

Sign up to get latest news & Listings:

Do you need some help?

Vivamus eleifend mattis eu faucibus at felis eget. Tincidunt at ut etiam turpis consectetur euismod. Ullamcorper aenean sem sceleris que sed vel facilisi netus ut. Pharetra vitae sed ut sed sit pharetra sed. Sit sollicitudin potenti laoreet auctor non nunc. Quam viverra commodo vel adipiscing tortor ultricies.
Copyright © 2024 | Privacy Policy
Divi – Real Estate Agent