Lately, NFTs or Non-Fungible Tokens (NFTs) have taken the internet by storm as celebrities to artists and respected companies have found a lucrative opportunity to sell digital art online. A few months ago, a young boy named Jaiden Stipp sold a digital illustration of a waving astronaut for 20 ETH (currently $65,327 at a going rate). Another young adult Victor Langlois has made a fortune of $18 million from NFT sales in 2020. His digital art named the Everlasting Beautiful, raised an astonishing $550,000. And, needless to say that others are also jumping on the bandwagon.
However, for some, it remains an unpredictable concept and they are still going round in circles with if's and but's about NFT since they don't have a clear understanding of it. As many confusions are going around the NFT, we thought it would be better to provide you with a detailed understanding of what it is and how you can make money out of it without much hassle.
What is NFT or Non-Fungible Token?
NFT's can be defined as cryptographic tokens in a blockchain that has distinct identification codes and metadata that make them unique and different from each other. However, they cannot be traded or exchanged like cryptocurrencies as they are not identical to one another.
Whether it is a rare baseball card or coin collection, NFTs aim at creating shortages among assets that are otherwise substantially available. You need to know that your digital art that can be seen online, can be screenshotted or downloaded by anyone (even at the same quality), the main purpose of NFTs is to put an agreed-upon value of ownership on your digital art. This is where the blockchain comes in to confirm the ownership and the validity of NFTs.
Nonetheless, it is also true that some NFTs are worth a fortune, some are equal while some are just worthless. Keep reading to find out the most profitable ways to make money in the current NFT wave.
Digital Works of Art
If the intent is to make pure profits, individual NFT artworks are by a great deal the most valuable Non-Fungible Tokens ever created. It's said that a new revolution arrived on March 11th in the history of art selling when Christie's, one of the popular auction houses in the world, sold an NFT of an artwork for $69 million. That was the first time this renowned auction house auctioned a fully digital artwork.
Beeple’s collage, Everydays: The First 5000 Days, sold at Christie’s. Image: Beeple
The name of the artwork "Everydays: The First 5000 Days" was created by Mike Winkelmann who is more famous by the name Beeple. Besides, this NFT isn't a single artwork but it is a collage of 5000 tokenized pictures that Beeple was making every day over the last few years.
Since the popularity of NFT is skyrocketing, even as we speak, the record held by Beeple's NFT may soon get surpassed. So now you know that you could make money by transforming your digital art, which could be anything, into a Non-Fungible Token.
If there is any perfect application of Non-fungible tokens, it would be tokenizing collectibles. Businesses that are already into trading physical collectibles like trading cards now have the scope to sell them in digital form. Moreover, NFTs have provable uniqueness, the value of a digital trading card could be a lot more than the price of its physical counterpart.
Till now, sports cards are the most famous kind of licensed NFT collectables. Many do not know that the first NFT cards project allowed people to trade licensed cards for footballers. However, recently NBA launched its NFT of collectable cards, which indicates more sports organizations are soon to follow that will make way for collectors to buy hockey or baseball NFT cards simultaneously.
Although sports cards are just an example, any physical collectibles can be turned into NFTs effortlessly. Also, you should know that Non-fungible tokens can be securely stored on the blockchain, meaning they will never suffer any physical damage or lose their quality in any way.
NFT Video Games
It is being said that the NFT video games could be the future of NFT technology. Till today, no other games were able to achieve huge popularity using NFT other than video games. On top of that, gamers are known to invest a lot of money on virtual items, such as Call of Duty loot boxes, World of Warcraft Gold or Counter Strike skins, the market of which is in billions. So when a big video game brand chooses to sell in-game items in the form of Non-fungible tokens, it would bring a huge wave on both blockchain systems and gaming.
In comparison to interactive NFTs like virtual works of art, simple digital trading cards, in-game NFTs are much more advanced. Mainly NFT used in video games is completely interactive, complex as well as can change over time, for instance when upgraded or leveled up accompanying the player's character.
The NFT Future
You're mistaken if you consider this like another passing crypto trend because NFT has several special applications, and the complete potential of NFT is yet to be explored.
Furthermore, the NFT gold rush is intensifying every day as more and more businesses and individuals are stepping into the non-fungible token world. Since the most famous NFTs are just simple images in contemporary times, it shows the market is still undervalued to a great degree. In other words, the actual potential of NFT may not start showing until the complex Non-fungible Tokens come into the limelight and become more widespread. For more information about NFT, get in touch with AVMS Digital today.