Most likely, you have come across news that another NFT crypto art is being sold at an auction for a large sum of money. For example, a 10-second video CROSSROADS by Beeple was resold for $6.6 million. The fact that everyone can download this video without any problems raises questions.
We have figured out what NFT is, why people pay big money for digital objects, and why downloading does not replace a purchase. Let’s get started!
What Is NFT?
There is a whole philosophy behind crypto art. To understand it, you need to start with what NFT is. This abbreviation stands for non-fungible tokens. It is a cryptographic asset, which most often runs on the Ethereum blockchain. Other blockchains can also issue their own NFTs.
Why would i want an nft
One Bitcoin is, for all intents and purposes, identical to another Bitcoin.
Right now, we’re seeing NFTs mainly being used to sell “digital collectibles” such as digital art, music, online articles, tweets, in-game items, and collectible cards such as CryptoKitties.
NFTs can represent different types of assets. Because of this, they can have different rules attached to them. These rules are often referred to as Smart Contracts and are defined by their programming code, which controls the transfer of ownership and verification of NFTs.
So What Are You Actually Buying?
When you buy an NFT from one of the many NFT marketplaces out there, you’re paying for a token that represents a unique item.
How Do You Sell an NFT?
NFT creators often tap into their already built-in audiences to find buyers. Whether that be social media or friends and family. But some NFT marketplaces like OpenSea and Bitski regularly feature creators, similarly to Etsy and Shopify, where you can filter and search for specific goods within categories.
Bidding has begun on my collab with @PapaBeardedNFTs ! https://t.co/Xw63FJEVgD
— Bryan Minear 🌓 (@bryanminear) March 11, 2021
What is the Difference Between Selling Multiple Versions of an NFT and Selling Limited Edition, Physical Prints?
The biggest difference between selling a limited edition hard copy of a photograph versus multiple versions of the photograph as an NFT is tangibility.
For Minear, it also comes down to what his audience values.
In order to make an income creating and selling NFTs, you need to build a reputable brand and business around your NFT in order to increase the supply and demand for what it is you are offering.
If you are expecting to upload a random piece of art with no underlying value or goal, don’t expect to sell many NFTs.
10. Creativity and Value Is The Key To Minting Successful NFTs.
When it comes to minting NFT that people want, there is a lot of thought that should go into the creative aspect of your NFTs which will, in turn, make them successful.
Focusing on the creative aspect of minting your NFT may lead to better success overall and may add more value where other NFTs may lack.
Whether you collect rocks or collect cards, it’s always been a way of living and NFTs are sure to keep the stride going steady.
When you purchase an NFT you can actually help out a community you want to support. Many non-fungible token brands may offer a certain percentage of total sales to a donation of choice, or they may gather a set percentage of the sales earned and give that money back to the community.
This money could be distributed back to the community based on how many NFTs one wallet holds. For example, if you owned 50 out of only 100 NFTs, you would gain a larger portion of the refund as opposed to someone who holds only 50.
Forget about the money for a second and imagine all the support you can receive from the help of your community.
These are the questions you should ask yourself when determining if your NFT will be a success after minting.
- What are you offering to your consumer?
- Why are you offering your product or service?
- Is there a demand for your product or service?
- How can you present your NFT in a creative way to make it stand out from others?
- Are you creating NFTs just for the money?
Read over these questions amongst yourself and answer them honestly. This may help you make a better decision when figuring if your NFT project will be successful or not.
11. Implementation of Smart Contracts Can Add Value.
NFTs are simply digital records of transactions that are recorded on the blockchain as proof.
Absent any additional terms or written agreements. This is all you get.
Additional Terms With NFTs
This being said, many NFTs do indeed come with additional terms that explain in more detail what you can do with your new purchase. This is why it’s so important to fully understand the terms of every NFT you purchase, as they can vary wildly from one to another.
Drabber Labs Inc., the company behind CryptoKitties, has created a simple NFT License that explains what you can and can’t do with an NFT that they created. This license makes it clear that you do not own any copyright.
Rather, you own a form of licensed content.
Other NFTs do not automatically come under the “NFT License,” although any NFT project can choose to adopt this license if they wish.
The term NFT is being thrown around plenty right now, and interest in these strange blockchain tokens is only set to grow in the coming years.
But before spending even a small amount on an NFT, or “digital collectible,” you should know exactly what it is that you’re purchasing. It’s probably not what you expect.
What Is an NFT?
NFT stands for “non-fungible token.” A token is a digital asset that can be transferred between people on a blockchain. And a non-fungible token is a completely unique token.
It can’t be replicated or divided into smaller parts. This property of uniqueness gives NFTs a wide range of potential uses.
In contrast, a fungible token is a token that another identical token can easily replace. One example would be cryptocurrency tokens.
To put it in terms of physical art collecting: anyone can buy a Van Gogh print. But only one person can own the original painting.
After the brag and “I feel awesome”-period, any NFT owner can start to think how to make a quick buck on the NFT, aka “find someone who wants to pay even more than yourself for a digital file”. Coming back to Beeple, one of his NFTs that was originally sold for +66.000 $ was resold for $6.6 million, that’s a 100x in a few months.
It should come as no surprise that the NFT space is vibrant with young people buying cheap NFT’s and then trying to resell the NFTs to someone else. NFT marketplaces make reselling incredibly easy by allowing users to ‘list items for sale’ or ‘sell items’.
On March 11, 2021, Christie’s, the 255-year-old auction house, made international news with the $69 million sale of a non-fungible token (NFT). The transaction dwarfed previous head-turning blockchain-art sales, and rode a wave of coverage debating the merits and environmentalcosts of this relatively new art form.
But what, exactly, did the pseudonymous Christie’s bidder MetaKovan actually buy?
The artwork the NFT represents, Beeple’s “Everydays: The First 500 Days,” exists first and foremost in the digital space, and is freely available for everyone to see online. Christie’s even tweeted a picture of it. So it’s not the artwork itself or, at least, not only the artwork that was purchased.
No, the reality of the Beeple NFT is something else.
We asked the company who minted the $69-million NFT in question to explain what’s going on here.