Interesting fact: the vast majority of NFTs have nothing related to physical products what so ever. There is nothing real, nothing backing them, no cashflow. There are just JPG image, animated images or videos on a screen !
When we are considering the crazy amount for which some NFTs are sold and bought, we can assume it is a bubble. Before you buy NFTs, you should know if NFT is a scam ? Well some the older generations is surely look like a scam but for the younger generation it is a money making opportunity and or NFT is an investment.
How Non Fungible Tokens work?
You can use some popular blockchain tokens (staking through smart contracts with Ethereum, Cardano, Polkadot…) to issue your own currency. You then can attach some art work to it and make it available on the market for people to purchase these artworks.
The value of these NFT will increase in value basically only if they a rare and people want to purchase them. Main stream NFT creators usually commit to a limited quantity of NFT to be issued on specific dates and we often see a 10,000 of artwork to be created.
The creators like their tokens to be attached to some sort of physical asset, experience or an invitation to an event. Many people forecast that NFTs with become in a new future a way to fight counterfeited items products.
Factors to look for when buying NFTs
- Fame: you should look for NFTs that have been created by an organization or a person that have fame or large community of fans
- First of its kind: it is always better to have a novelty like a first edition Pokemon card, and even better if also rare. It will be considered as baring some history and therefore attract more interest
- Attachment to the real world: if the NFT can be related to a physical real world element, it is considered as a plus because it’s depreciation will be less and it will bear an additional interest to the buyer. In a near future, all online games will be sold with NFT access, in order to fight piracy and allow a better resell market value and also allow the players to be paid. You can read this interesting article on crypto gaming industry
- Scarcity: of course this factor is subjective, you have to evaluate the number of NFT from a collection versus the number of people interested in buying in this NFT collection.
Trending NFTs Markets
Sports NFT Market
NBA based NFTs are in my opinion a market that will bloom in a very near future. NBA Top Shots is already featuring the most remarkable NBA history moments in a form of videos NFTs.
Lebron James #29/49 Legendary sold for 208,000USD in its first edition of its kind. This is for sure going to change the game of sports income regulation. You can imagine that top players will probably have a new addition to their contracts to allow Sport NFTs to be factored in.
Music NFT Market
The music industry is already being revolutionized as innovative music creators are selling their newly produced music through NFT. The speed and the volume of sales (going directly in the creator’s pocket are insane). 3LAU was the first ever musician to sell his album in crypto currency achieving within 24 hours a whooping 11.6 million dollars.
Electro musicians are paving the way for the rest of the industry and are very successful for the following reasons:
- they are used to creating trends and know how to generate the hype
- their followers are die hard fans with maximal engagement and action takers
Where to trade NFTs
Create an account on one of the following NFT market places:
Fund your account
- create your metamask wallet (metamask.io), need to wait a few days to get credited (your anonymity will be higher)
- connect your bank account or your credit card (no bank anonymity) with mobile phone name and email
You now can go hunting NFTs! and here is a detailed tutorial on how to find rare NFT