Take your art into metaverse
NFTs are taking the digital world by storm. According to a report from Nonfungible.com trading, NFT tokens hit $17.6 billion last year, an increase of 21,000% from 2020. A total of $5.4 billion in profit through the sale earned in 2021. From “The Bored Ape NFT” to video clips, “CROSSROAD” By Beeple, sales of NFT reached the highest. Pak’s “The Merge” became the most expensive NFT sold on December 2, 2021, with 30,000 collectors pitching for $91.8m.
NFT stands for Non-Fungible token. We can use NFT tokens to represent some unique items. They let us tokenize items like artwork, collectibles, photos, music, videos even real estate. One can create and sell online on marketplaces like Opensea, Axie, and Larva Lab. NFTs are non-interchangeable with other items because of their unique properties.
Fungible tokens are divisible and non-unique. All fiat currencies are fungible. You can buy Bitcoin using Bitcoin, which makes it a fungible item and thus interchangeable.
Types of NFT
Anything can be an NFT. Here are some more common NFTs that are on the market.
Artworks are the most popular NFTs out there in the market. These are mainly digital artworks stored on the digital ledger. Short videos and even GIFs have been sold out as NFTs for millions of dollars.
Music is the newest phenomenon in the NFT market. Artists are pre-releasing their albums in the NFT marketplace, thus earning a good amount. When the album is released the buyer gets a share.
NFT-based video games involve players to win rewards like cryptocurrency, digital assets, or any other NFTs. The most popular video games such as Axie Infinity, The Sandbox, and Crypto Kitties are NFT-based.
People can sell and buy virtual collectible items in the NFT-based market and keep it just like a real thing. Curio Cards were the first to be launched as an online art gallery. These are the most original cards you can buy and the most valuable.
As much as it sounds crazy, Virtual fashion is a real thing and has significant market capitalism. But who will pay millions to buy fashion that you can’t even wear? Well, folks who buy fashion NFTs will be dressing up their online avatars.
The NFT market has a lot to discover yet. From buying digital kitties cards to virtual Louis Vuitton dresses, people have purchased many different items as NFTs.
As time goes by, the NFT market will grow day by day. The market is open for everyone to make their NFTs and buy the existing ones.
Minting of an NFT
Minting of NFTs takes place on the same platform they are traded on. These are known as NFT Marketplaces. In India, some of the most popular NFT Marketplaces are Wazirx, Jupiter Meta, Bollycoin and Opensea. These days every crypto exchange is offering separate NFT marketplaces.
When you mint NFT into a marketplace, you also get the opportunity to sell your NFT by showing it to the buyers. NFT marketplace allows users to convert their digital art into NFT. Here minting is referred to as the conversion of digital art into blockchain-based NFT.
The following are steps used to mint an NFT
- Before minting an NFT, a crypto wallet is a must. There are various crypto wallets the most popular are Electrum, Mycelium, and Exodus.
- A marketplace is required to mint an NFT. Different marketplaces are available, such as OpenSea allowing users to create their collection of NFTs.
- The next step is the minting of an NFT. Platforms provide an option for a single NFT or series/collection of NFTs. Select the file you want to mint and upload it.
For minting an NFT, you need to pay the gas fee, which is common in all cryptocurrency transactions. NFTs provide various ways for you to earn money.
It could be by renting your NFTs, earning royalties on them, staking your NFTs, or flipping your NFTs.
Flipping means buying an NFT and then selling it at a higher price. However, buying an NFT, which has some inherited value, is profitable. An NFT without any inherited value may lose its price quickly. Just like the first tweet ever by “Jack Dorsey”, founder of Twitter, was sold at $2.9 million. A month later, the current owner put it for auction for $48 million, but only seven bids were received. They ranged from $258 to $5.46, with no-bid higher than 280 dollars. It shows that the market isn’t into everything offered as an NFT.
Future of NFT
NFTs are going to create a future where the art looks different. There can be no other better way to display and sell digital creation. If you are curious about the blockchain NFT marketplace, book a demo with us, and we can help you with our “Non Fungible token services”.