After the Bitcoin and cryptocurrency, now trends the NFT, non-fungible tokens. It is an emerging investment opportunity. NFTs are becoming popular with multi-million dollar sales this year on the exchanges. The non-fungible tokens have attracted high net-worth individuals and businesses. Hence, the NFT movement is going to be big!
Non-fungible tokens (NFTs) are the new digital assets that enable one to invest and get rich fast. Well, that’s wow! They are way similar to investing in cryptocurrencies such as Bitcoin, Ethereum, and many other. NFTs are the current trend that hit the headlines, platforms, users, and so on.
In February, an animated GIF of Nyan Cat-a 2011 meme was auctioned as an NFT for more than $500,000. Recently, the digital artwork by artist Beeple was sold for $69 million. Christie auctioned it at a standalone online auction.
An NFT could be a digital painting, drawing, or GIF, digital video, etc. NFTs are a part of the blockchain art movement bringing artists onto a platform where they could sell their artworks and reach global audiences. For instance, singer Grimes sold digital NFTs worth $6 million, and the collection included digital videos and one video apparently fetched more than $389,000.
What is NFT?
Imagine your artwork is all set, and you wish to sell it. So, one way could be auctioning it physically, and the other is the new NFT. You can sell your art online by digitizing it. As an original copy, you can sell the digital art with NFT certification. So it means, NFT acts as a certificate to a digitized property. This will also earn you a royalty every time the hands of this token exchange.
Ever imagined selling a tweet? Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million. The digital assets are sold online from the exchanges that allow NFT trading with cryptocurrency.
But how does this NFT work?
NFTs are real. Its been around since 2014 but is gaining popularity now. So, although you have a painting of the Mona Lisa on Google or a website or a picture of the same from the Louvre Museum in Paris, the original painting is one and only! So users interested in buying the authentic and original painting of the Mona Lisa can bid the painting through an NFT platform and own it. You can also sell your own music on the NFT platform.
Outcomes of NFT-based Auction
- Users can own the artwork. They have all the ownership rights with specific limitations of owning it for a lifetime or a particular period.
- At a particular time, NFT can have only one owner.
- Creators and buyers need to have a decentralized metamask wallet to participate in the auction and sell/buy the art.
- NFTs are distinguished by a unique code recorded on the blockchain. So all the details of the creator and buyer is stored on a ledger. This code could help one to trace who the creator was.
The price of an NFT-based artwork
So the trading price of any artwork based on the non-fungible token is either determined by the creator or the auction. International NFT exchange platforms such as OpenSea allow creators to choose the pricing methods. While in India, the WazirX marketplace enables the selling of NFT at a fixed price in the exchange.
Thus, the terms and conditions for each NFT vary based on the exchange platforms and the creators.
To conclude, NFTs are real, and soon we might witness a full swing of artists selling their artworks on the NFT exchanges platforms. It might become the most effective way to invest for the investors too. However, a wise decision is always required!