According to Compounding Quality on Twitter, Yusuf Ali defines royalties as ongoing payments received by the creator or owner of an asset, such as intellectual property or digital content, whenever that asset is used or sold (source: Compounding Quality, May 28, 2025). For crypto and NFT traders, understanding royalties is crucial because many NFT platforms enforce royalty payments on secondary sales, directly impacting profit margins and trading strategies. Traders should carefully review royalty structures for each asset, as these fees can affect both short-term flips and long-term holdings in the rapidly evolving digital asset market.

According to Jack Booth (@jbfxdotme), NFTs featuring royalties are not classified as securities, which could drive positive sentiment in the crypto market. Booth highlights the potential impact if a new NFT standard is developed on Telegram, enabling instant utility and perpetual royalties for IP owners and artists (source: Jack Booth on Twitter, May 20, 2025). This development could enhance NFT liquidity and encourage broader adoption, making NFT trading more attractive for both creators and investors. Crypto traders should monitor Telegram-related NFT projects for early opportunities.