Collectors have been willing to spend massive amounts of money on unique items like paintings, cars, and cards. In 2014, a simple white artwork was sold out for $20Million.
With technological advancements, collectible items have moved into the digital space in the form of Non-Fungible Tokens (NFTs). Last year digital clipart of rock was sold for 400ETH (around $1.3 million).
What is the hype about NFTs, and why are people insanely spending millions of dollars on digital collectibles?
Let’s find out.
NFTs – What are they?
Before we jump onto what NFTs are, you need to know the meaning of the term “fungible.” Anything that another similar item can replace is called a “fungible.” For example, currencies are fungible because you can divide $100 into five $20s or two $50s. These will still amount to a total of $100.
Non-fungible tokens (NFTs), on the other hand, are not interchangeable. Each token represents a unique asset owned by a particular person. The famous painting of Monalisa is a non-fungible item as it can’t be divided into smaller parts or replaced by anything else.
Now, you must have this question “Won’t there be copies of the same NFT, and how is it verified”?
Each NFT contains differentiable information such as who’s the current owner and who was the seller; all of this makes an NFT distinct and easily verifiable. All of the NFT’s information is stored in a unique digital signature that prevents it from being exchanged for or equivalent to another (hence, non-fungible).
Now you know what they are NFTs, so let’s dive in about a few use cases of NFTs:
- Video games: NFTs allow in-game items to be tokenized and easily transferred or exchanged with peer-to-peer marketplaces. Character abilities, appearances, and features are a few examples of in-game items.
- NFT staking is a new option for NFT holders to generate passive income in the crypto world. Staking allows them to lock their assets in DeFi platforms and get rewards without selling their NFT collections.
- NFTs can also be utilized to earn membership in a private tokenized social club.
- NFTs can be traded, bought, and sold like cryptocurrencies on NFT marketplaces like Opensea, Rarible, etc.
NFTs can take different shapes and formats
Even though they have been present since 2014, NFTs are gaining popularity as a popular means to buy and sell digital artwork.
Let’s look at a few examples of NFT types:
1. Art NFTs
“Everydays – The first 5000 days” was a collage of 5,000 distinct photographs created by Beeple over a lengthy period from 2007 to 2020. Although relatively ‘unknown,’ Beeple was already an artist before his $69.3 million NFT sales.
NFTs are not only for experienced people; in August 2021, a 12-year-old boy earned over 290k pounds by selling Whale Art NFTs.
2. Collectibles / Limited Editions NFTs
Crypto Punks and Bored Ape are some of the well-known collectibles available on OpenSea that reach mainstream news because of the celebrities and major influencers that invest in them. If you wonder what these collections are, they are a cast of 10,000 characters, and each one is unique and can be owned by a single individual.
NFT CryptoPunk #5822 was sold for $24 million. In comparison, Bored Ape #2087 was sold in September 2021 for an unrivaled 769 Ethereum or a $2.3 million sale at the time of the transaction.
Bored Ape Club also serves as your Yacht Club membership card, granting you access to exclusive member advantages.
3. Music NFTs
Singers and rappers are also jumping on the NFT bandwagon.
At the beginning of 2022, rap star Eminem purchased a Bored Ape Yacht NFT for 123.45 Ether worth $452,000. Before this investment, his first NFT collection, ‘Shady Con,’ earned over $1.78 million in sales! The said collection contains figures based on his best-known music videos and even some of Slim Shady’s original beats.
Steve Aoki, the famous dance music DJ, has sold $4.25 million in his “Dream Catcher” debut NFT collection. One ‘hairy NFT’ was even purchased for $888,888.88.
These two are among the biggest and best music NFTs yet!
4. Game NFTs
As we had discussed initially, NFT games allow users to purchase in-game collectibles. Users can sell it to other users within the game or on any NFT marketplace.
You can buy digital pets using NFTs and breed them, make them fight with other pets online, or trade them.
Axie Infinity and My DeFi Pet are a few examples of such NFT games.
5. Meme NFTs
DOGE is almost everywhere these days. But did you know that the original picture that gave rise to the meme was also sold as an NFT for $4Million in 2014?
Being a ‘meme’ might have brought them some sort of fame back in the day. With the rise of NFT technology, our beloved memes from way back are being sold for millions of dollars.
Will Roseon offers a platform for NFTs?
As part of Roseon’s commitment to its customers, we will soon incorporate NFTs on WonderApp, introducing tools that allow users to show and trade their assets. Once the integration is complete, RoseonPad will then be able to support NFT sales (Initial NFT Offerings).
If you don’t want to miss out, you can follow Roseon’s social media handles to stay up-to-date on the latest news.
Digital characters or avatars using computer graphics (CGI) is basically what a Virtual Influencer is.
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