What is an NFT (Non-fungible Token)?
NFTs can be used to track and validate ownership or identity by utilizing blockchain technology. They use the same underlying blockchain cryptography technology, but they’re not the same as cryptocurrencies.
For instance, Bitcoin is a fungible token, which means that trading one BTC for another would provide precisely the same value. Nothing about the cryptocurrency and its value is altered. NFTs, however, are distinct and cannot be traded in this way. They are distinct from one another, but because they save information on a public ledger, this feature makes it possible to trace and identify the owner of almost anything. Because of this feature, NFTs are trustworthy in industries where tracking duplicate things is necessary and fraud is rife.
NFTs can be used in digital music, art, passports, collectibles, identity verification cards, and international supply chains. The gaming industry also uses NFTs to identify property parcels and other valuables that are available for purchase or exchange within the gaming ecosystem. NFTs can be used in any business where it’s critical to identify a specific owner and monitor ownership transfers.
NFTs have several applications, although they are becoming increasingly fashionable and fetch millions of dollars in the art market. The art sector has embraced NFTs primarily because theft and fraud are commonplace in the field. Fraud is eliminated by using NFTs as a public ledger. When everyone can easily identify the rightful owner of an item with a few clicks, how can you steal it? Additionally, NFTs do away with the necessity for middlemen, giving the original artist a just and larger part. Auction houses and agents are no longer necessary for artists to sell their artwork. Using an internet marketplace, anything can be done digitally.
NFT is a clever approach that can get rid of fraud and duplicate products, which has recently grown to be a whole industry.
The OpenSea NFT marketplace was estimated to be worth $1.5 billion by Tech Crunch last year.
NFTs can be useful in the battle against fake goods. For a very long time, lower-quality, counterfeit copies of products have been a problem for many businesses, including the wine and footwear industries. In these businesses, NFTs are utilized to confirm the authenticity of the items. NFTs could be applied to a wide range of businesses in the future, including the physical goods sector.
Are NFTs worth investing in 2022?
First, let’s look at some numbers. “Charlie Bit Me,” the first YouTube video, was sold for $761,000 as an NFT. Million-dollar sales of Crypto Punks NFTs are common, and Beeple’s Everydays sold for a record $69 million. Popular NFT artist Beeple has received significant financing for her work thanks to the NFT marketplace paradigm.
However, why are buyers of digital art spending such exorbitant sums of money? since ownership is assured. It cannot be stolen. It is also easier to sell if ownership can be easily verified. Finding an agency or expert who will put in the effort to determine whether it is an original composition, etc., is not necessary, nor should it take up time. The procedure of selling is just as simple as the process of buying. How awesome is that!
NFT detractors point out that anyone may right-click, save the file, and claim ownership of it. I hope you have luck with it! In what way will a thief alter the NFT ledger as well? This explains the great value of NFTs.
While the Ethereum blockchain network is one of the most widely used and well-liked platforms for deploying NFTs, NFTs are also supported by other blockchains, including Tron, Polygon, and Binance Smart Chain. Any blockchain can be chosen by the artist. The market as a whole is decentralized, much like cryptocurrency markets.
After learning what NFTs are, let’s talk about the top five NFT collections that investors should look into. NFTs are readily available for purchase on platforms like OpenSea. You have the option of using US cash or cryptocurrencies like Ethereum for transactions. Each site has a different accepted currency and method of payment.
1. Bored Ape NFT Collection
This is a collection of 10,000 distinct bored-looking apes. Every character has a unique expression on their face. The designs are quite appealing and have drawn a lot of investors. The limited supply of Bored Ape NFTs means you will have to buy them through OpenSea on the secondary market. A board game is available to buyers, and further promotions will be offered. Hence, acquiring a Bored Ape NFT grants digital access to treats and more products that the company sells.
2. Crypto Punks NFT Collection
This is unquestionably one of the largest NFT collections available for purchase. Although they ask for a fortune, they also offer a great return. NFTs running on the Ethereum blockchain are called Crypto Punks. There are only 10,000 limited characters available in total, and each NFT has a unique design. At $188,285 the lowest Crypto Punk NFT on the market right now.
3. Doodles NFT Collection
This is a ten thousand-piece digital art collection. The group behind Doodles, who have gained immense popularity, also brought us the wildly successful CryptoKitties NFTs. Burnt Toast, Poopie, and Tulip are the aliases used by the artists. Purchasers participate in choosing the future roadmap and get a vote on community activities.
4. Axie Infinity NFTs
Characters known as Axies and land plots in the form of NFTs are provided by Axie Infinity. These NFTs are for sale, and if the game gains popularity, the NFTs’ value increases as well. Angel, an Axie NFT, sold for a record $1.1 million.
5. Galactic Gang NFT Collection
Designed by Chris Dryer, this line of one-of-a-kind figures is offered for sale as NFTs. There are 5,555 of these characters in all, and they are all sold out. Ten percent of the sales go towards funding charitable endeavors. The distinctive, hard-to-replicate style of the Galaktic Gang series is widely recognized. Exclusive advantages including access to merchandise and other community items or events are only available to Galaktic Gang NFT owners. A thorough roadmap that will include further use cases for their NFTs has also been promised by the team.
To buy NFTs, you must have access to OpenSea or other comparable platforms. Investigating the creator’s background is crucial. Prominent musicians frequently fetch significantly greater fees.
If you can find one, limited collection NFTs are extremely valuable and rare. A celebrity-owned NFT will frequently fetch a significantly higher price. It’s crucial to keep in mind that NFTs provided by gaming metaverse ecosystems have greater value because gamers will utilize them.
In the future, NFTs with built-in use cases, such as community or club membership, will also be valuable. When choosing to invest in an NFT project, bear these points in mind.
For investors seeking an alternative investment source, NFTs have presented a significant opportunity. What can be marketed as an NFT is not restricted in any way. The CEO of Twitter, Jack Dorsey, sold his first tweet for $2.9 million as an NFT.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
