If you’ve been into the crypto scene for several years, then you would have been away of the basic concept of Non-Fungible Tokens (NFTs), as far back as 2012. However, while momentum had been building behind the scenes ever since, it wasn’t until the sustained 2020 crypto bull run, that NFTs entered the consciousness of most crypto investors – with the sale of Everydays: the First 5000 Days for $69.3 million, suddenly sending the concept of NTFs, viral. Whether you’re new to NFTs, or want to deepen your knowledge – our NFT Insight gives you our take on the potential of NFTs in the cryptospace.
NFTs are unique (‘non-fungible’) digital tokens that run via smart contracts, on blockhains such as Ethereum and Solana.
NFT definition: A non-fungible token (NFT) is a unit of data saved on a blockchain (digital ledger), that verifies the uniqueness of any digital file on the system. From art, to music and endless digital file options, the use of NFTs is likely to become a significant part of the emerging digital economy.
- NFTs are unique, or non-fungible, digital tokens that operate on smart contracts such as Ethereum and other blockchains.
- First NFT was CryptoKitty with each one being a ERC-721 token
- NFTs can be used to spread assets & verify authenticity using blockchain.
- NFTs are being used to denote digital assets in art, music, sports and other core entertainment media, including photos, videos, audio, and other forms of digital files.
- Access to any copy of the original NFT, is not restricted to the purchaser.
- NFT purchaser is the exclusive owner, verified by blockhain for proof of ownership and trading rights.
But Why Buy NFTs at all?
NFT creation and sales, are soaring in 2021, with May’s crypto bull run, seeing around $170 million in NFT transactions across the web, in just one week. By the end of the month, crypto’s dip, saw NTF trading, fall to around $19.4 million . Just like cryptocurrencies, NFT value is currently volatile, but that could mean buying on the dip holds attraction for traders. In a wider context, NFTs are becoming popular for several reasons, including digital investments and ownership rights for artists. NFTs are also increasingly popular with gamers and younger generations, as collectables and usable digital products within games.
- NFTs of works of art that mimic autographed memorabilia
- “Non-fungible” denotes the fact the digital items are unique & irreplaceable
- Bitcoin is a fungible item, because one BTC can be traded for one BTC
- NFT copies can be made unlimited times, such as a NFT digital print
- But NFTs give you ownership of the work.
- NFT ownership is similar to a work of art by Van Gogh; anyone can buy a print, but only one person owns the original.
Where to Buy NFTS
The range of trading platforms, offering NFT digital asset trading, is growing at a fast rate. Here’s a list of some of the top NFT platforms:
- Open Sea
- Binance Smart Chain
- Nifty Gateway
- NBA Top Shot
Famous NFT Sales
NFT sales have really taken off in the past 12 months, with billions in total trades – including some famous, high value NFT sales:
The first Tweet by Jack Dorsey
The first Tweet by Jack Dorsey in 2006, sold as an NFT for $2.9 Million and was purchased using ETH. The Tweet reads: ‘just setting up my twttr’.
Everydays: the First 5000 Days
Everydays: the First 5000 Days $69.3 million, was purchased in February 2021. Created by Beeple (Mike Winkelmann) as a collage of 5000 digital mages
Gucci Ghost by artist Trevor Andrew via Nifty Gateway $3,600, a shivering GIF-ghost NFT, was sold in February 2021.
Dogecoin Gif, by Chris Torres, sold for $600,000 in 2021. The Dogecoin- inspired non-fungible token (NFT) sold for 45 ETH ($69,000 at purchase), on the cryptocurrency art platform Foundation. The artist also created the Nyan Cat NFT, which previously sold for 300 ETH ($600,000 at purchase).
Grimes’ WarNymph digital art collection, sold for $6M in 2021. The digital art was published as ‘WarNymph Collection Vol. 1’ and went viral on Twitter, selling out in less than 30 minutes. The works went on sale via the NFT platform Nifty Gateway, with names such as Ærythe, Mars Theme, and Anhedonia. The highest-selling piece was ‘Death of the Old’ that features cherubs, a cross, a sword, and neon light, selling for $389,000.
Axie Infinity Genesis
A plot of land on Axie Infinity Genesis Land sold for $1.5 Million in 2021, making it a record breaking sale on a NFT digital land platform. The plot will be used for a new game mode called Axie Land (Project K).
Launched in 2017, CryptoPunks is one of the original NFT projects – a CrypotArt collection of 10,000 unique collectible characters. on the Ethereum blockchain.
- Made famous via media such as Mashable, CNBC, Financial Times, Bloomberg, MarketWatch, Paris Review, Salon, The Outline, BreakerMag, Christie’s of London, New York Times.
- Inspired ERC-721 standard that powers digital art & collectibles.
- Total value of all CyberPunk sales* is over $454M (May 2021)
The evolution of NFTs such as CryptoPunks, can be seen by the fact that the collectibles were originally free! They’re now in big demand frequently swap digital hands, for sums that have reached as much as $7.57M in 2021, for Punk #7804! The current lowest priced Punk is over $36,000, and over 9,408 sales have been made in the last 12 months. The allure of CryptoPunks for potential investors, is the fact that they’re classic NFT art, something that could retain long-term value and potentially inflate over time. The risks are logical – will their novelty wear off, and is there really any tangible value.
Get the answers to popular NFT questions.