In this way, one NFT cannot be interchanged with another NFT, and the whole cannot be broken down into smaller units and used. These traits denotenon-fungibility, hence the name NFT.
NFTs Offer Options to Create and Trade Rare and Unique Digital Assets
NFTs are provably scarce assets. Each non-fungible token contains computerized code that verifies it is the only asset with its specific digital identity. This all-important characteristic is useful for creating unique digital goods, and can even be used to represent rare physical assets, whose provenance (historical record of ownership) can be tracked andcryptographically verifiedthrough its underlying blockchain protocol. The possibilities for exclusive and rare items that can be traded — such as digital art, collectibles, or game pieces — are endless.
Gunky’s Uprising which sold for $1.33 million, is the most expensive NFT song ever
Source: Nifty Gateway ^
An anonymous buyer bought a song put up for auction by SlimeSunday and 3LAU to name the song as per his own wishes.
The iconic ‘Doge’ meme broke all records when it sold for $4 million, making it the most expensive NFT meme ever.
Source: NBC News ^
A popular meme depicting a dog from the Shiba Inu breed, which had quickly achieved iconic stats, became the most expensive NFT meme to date.
The auction winner, @pleasrdao, who bought the Doge meme, paid via Ethereum.
In a groundbreaking sale; a plot of virtual land was sold for $913,228.20, making it the most expensive NFT virtual land/property ever
Source: Yahoo Finance ^
Sales occur regularly in the blockchain-based game Decentraland.
“We’re making the product more accessible to a mainstream consumer by building out kind of the core marketplace onboarding and really solidifying OpenSea as the brand directly tied to NFTs, very similar to how Coinbase established itself as the brand around cryptocurrency,” Finzer said.
In June alone, OpenSea sold $160 million in digital assets on its NFT marketplace, and it experienced a 45 times increase in volume growth during the first half of 2021 from just $8 million in sales in January.
High-growth collectible avatar projects like Hashmasks, Bored Ape Yacht Club, and Meebits, which combine elements of art, blockchain tech, and social clubs, have also taken off on OpenSea in 2021.
“What’s exciting with NFTs is that the use case is not just purely financial or purely speculative,” Finzer said.
CoinDesk put out this handy guide if you want more details.
Is this just a fad?
If you’re asking why anyone would pay over $1,000 for a virtual Christmas sweater with the Bitcoin logo all over it, perhaps you’re not in the right place. But it is entirely possible that the whole NFT obsession may prove a fad – or not.
Many of the first NFTs were in the style of CryptoPunks, pipe-smoking digital beings that date back to 2017, and CryptoKitties, cute virtual felines that started the same year.
Will the value of NFTs continue going up?
Total NFT sales in 2020 were worth about $250m, while the past month alone saw sales exceed $220m, according to NonFungible.com. All-time sales are about $534m, with the average price of one NFT at $97.
We think NFTs are really one of those once every couple-of-decades paradigm shifts that is just incredibly exciting.”
The new injection of funding comes as OpenSea NFTs are expanding to more mainstream audiences, and represent an entirely new economy based on digital ownership. Today, OpenSea is the largest marketplace for NFTs, representing gaming items, digital art and collectables, event tickets, domain names, and millions of other assets backed by blockchains.
Expansion to gas-free Polygon
Previously, OpenSea was restricted to Ethereum, the popular cryptocurrency platform that has been criticized for using a lot of computing power and wasting energy.
In a game, I could buy an NFT that memorializes my completion of Red Dead Redemption 2, where it captures everything I did in the game and follows my unique path through it. I could show that to people, maybe, sometime in the future and recount it with pride.
“It’s more about the fact that the value of the assets are part of the experience,” Siu said. “What makes it valuable as a collectible is that it’s an emotional and cultural moment. I can go deeper into the experience, and the more connected I become to it.
I can express myself, and have a sword with 50 kills on it, or maybe it’s something my son used, and we had a great moment with it. We’ve just scratched the surface of that.
“Within the generations or the family where that item is held, it is priceless.
And this is a power of non-fungible tokens because every object has some scarcity.
We think NFTs and OpenSea are really, extremely well-positioned to drive the next wave of adoption of blockchains.”
OpenSea’s marketplace supports multiple blockchains, such as Polygon and Ethereum, and will announce support for Flow and Tezos in the near future. Investing in the interoperability and scalability of OpenSea’s cross-chain marketplace is part of the company’s larger vision to bring users closer to Web3.
Users can pay with stablecoins such as USDC, but they can’t pay with U.S. dollars just yet.
OpenSea launched in 2017, announcing a $2 million round a few months later from Founders Fund alongside industry-leading crypto firms. In March 2021, the company announced a $23 million institutional round led by A16z, with participation from existing investors and angels including Ron Conway, Mark Cuban, Belinda Johnson, Naval Ravikant, Ben Silbermann, and more.
In addition to the cards themselves, with these NFTs it will be possible to take part in the challenges of the platform and once all of them have been collected, those who have held them until the end can receive a prize which will also be limited and only available in this way.
In order to prevent the end-user from experiencing latency or high costs due to the fees of the Ethereum blockchain, the system will take advantage of the Flow blockchain, to which the CryptoKitties will alsomigrate, asannounceda couple of months ago, and where the Moto GP NFTs are alsolocated.
This is also a form of entertainment, as Dapper Labs CEO Roham Gharegozlou pointed out:
“Collecting NBA Top Shots is a lot of fun – and thanks to the Flow blockchain, your collections are worth real money.
Like any investment area, you’ll need to think strategically and follow trends that often change rapidly. Yes, it’s possible to earn money through NFT investment, but you have to do your homework.
How do I buy an NFT?
If you’re interested in diving, you should first figure out a few things:
What marketplace to buy your NFT from
Options include OpenSea, Mintable, Nifty Gateway, Rarible, and topic-specific spaces like NBA Top Shot and Valuables (for Tweets).
Which “digital wallet” you need in order to store your NFT
A wallet is where you keep your digital money, as well as your identifiers and credentials.
NFTs today, as NFTs are typically built with theERC-721 token standard. This standard outlines a minimum set of features that each non-fungible token should possess, but it does not limit potential extra attributes of NFTs.
Use Cases for NFTs Include:
Creating digital or crypto-collectibles
Managing ownership of digital items within blockchain-integrated games
Proving authenticity of digital art, while allowing artists to retain their copyright and intellectual property
Devising a digital identity system that allows users to control their data from one place
Allowing fractional ownership of high-value items, such as real estate
One of the earliest and most popular applications for NFTs is the Ethereum-based gameCryptoKitties, which allows players to buy, sell, and breed digital cats.