Would you believe me if I told you that a digital artwork of an ape with a crown on his head was sold for a record price of $2.7 million? But it is what it is, and the reason behind it is the lucrative non-fungible tokens [NFTs], the uniqueness and rareness they bring along with it. Apart from these ape faces, countless other digital arts are being sold in millions just because they are minted as a non-fungible token. Sit tight; I have a lot of info packed up for you.
NFTs, one word that is up in the headlines every single day in recent times. These blockchain-based tokens are turning into an extraordinary asset of the new age. However big it has grown, there are still a number of questions lurking in the minds of individuals, like what exactly are these NFTs and why is everyone rhapsodizing about them. Keep reading this blog to get the answers to all the questions and also a few latest updates on this lucrative sector.
What are NFTs?
The non-fungible tokens are crypto-based assets that represent unique digital and physical collectibles- like artwork. They are verified and stored in a digital ledger on the blockchain. These assets can neither be exchanged nor divided. The assets associated with these tokens range from digital artwork, music, domains, pixelated collectibles, virtual lands, etc.
Where Can You Buy An NFT? And How Do You Buy It?
The digital collectibles are listed on NFT marketplaces where interested users can sign-up, connect their digital wallets, and start buying. Some of the most prominent marketplaces to head to are,
- Nifty Gateway, etc.
These platforms come with an exuberant storefront where you get to witness all the collections.
Once the investors have set up their wallets and added enough cryptocurrencies to them, they can start bidding. The aesthetes place their bid on the specific artwork they want to buy. At the end of bidding time, the highest bidder gets to own the asset. The proof of ownership is transferred instantly to the new owner. They can either keep hold of it or list it back on the marketplace for a higher price as per the demand. Yeah, it is as simple as ordering your favorite dress from an eCommerce marketplace.
What Are NFTs Used For?
The introduction of non-fungible tokens has turned over the art market in a drastic manner. For the first time in the history of the art market, the artist gets hold of the power instead of third-party moderators and curators. Yes, the creators determine the price for their work and also get to relish all the profits from the sale. Oh, did I forget to mention the royalty part?
In the past, an artist would create a mind-blowing work and would get the benefit only for the first time it is sold. We all know that the current worth of Starry Nights, 1889 by Van Gogh is over 100 million dollars. But did Van Gogh get anything out of his works? Probably that is a No. With NFTs here, this won’t be happening anymore. The artists can determine the royalty percentage they require while listing their work. Now, every time their work is sold, this royalty amount will be transferred to the artist.
Celebrities Launching their NFTs
Now, don’t come to an assumption that NFTs are all about artworks alone. Anything unique and rare piece can be tokenized to elevate its experience. Global celebrities like Snoop Dogg, Lindsay Lohan, Paris Hilton, and many more have listed some best moments from their life or designs or digital characters of themself as NFTs to connect with their fans.
Lately, the Indian SuperStar and the most celebrated artist in the sub-continent, Mr.Amitabh Bachchan announced his NFT launch. It is scheduled to be launched on the Beyondlife.club platform on the 1st of November, 2021. It is expected to be the biggest NFT sale in the sub-continent. A number of Investors have already got their funds ready in the wallet of the platform.
Should You Buy NFTs?
By reading this blog, you already would have started dreaming of owning your own NFT. That’s not a mistake though, we all do it. Firstly, you should know that the value of a non-fungible token depends on the price a collector is willing to pay for it. It is based on exclusivity and hype and does not have definitive economic metrics.
However, to give you some numbers, the trading volume of these unique tokens is currently around $5.5 million, with a market capitalization of $44.12 billion. Though buying an NFT is a personal decision, by getting your hands on the right assets, you can mint millions of dollars in NFT trading. Go for something spicy like a star launching an NFT, as their fans will undoubtedly raise the prices of it sky-high before you realize it.
Hope, you have a better understanding of these lucrative tokens and how and where to get them. Do further research, check out the upcoming NFT drops, both Indian and Global, and do all the necessary steps to get hold of the most hyped tokens before anyone else could. Get, Set, Go!