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NFT: How to Make, Sell or Buy It?

Updated: May 8, 2021

The advancement of technology and infrastructure has transcended human expectations and redefined the new norms of living. Not many remember a world without smartphones and everything, and quite frankly not many would want to.


While all aspects of human life progressed, one area certainly moved at a snail pace owing to the fact that large institutions operating as the majority wished it so i.e. The world of Financial services.


FinServ relied on large scale institutions to govern it and regulate it from the get go however as evident by the financial crisis of 2008, the centralised power collapsed and the world collapsed with it.


Technology had been adopted up to that point however post crisis the adoption rate accelerated at an unprecedented way. The world woke up to cryptocurrencies and blockchains and in an instant the financial service sector was redefined.


Bitcoin rose to fame or rather infamy as the dread of governments and central banks alike. The masses were sceptical about cryptocurrency from the get-go. Crypto-currencies initial reputation was that of facilitating exchange on the dark web and other affiliates and no one thought it would amount to anything great. However time is a true testament of the asset that has grown to be so prominent that companies accept it as legal tender.


As a spin off of the concept, NFTs were brought into the world. The biggest difference from then vs now is that people are aware of it and the value it can generate. Unless one has been hiding under a rock, chances are they have heard about NFTs and the exorbitant amount some of them fetch. However, the viability of NFT as an investment raises concerns since it is a comparatively newer investment source.


Classification of Assets

Every supporter of the cause swears by NFTs as the next big thing in data, crypto and investments alike, however the concept brings it fair share of problems, the biggest being valuation of assets and standardisation or regulation. In the following article we shall explore Non Fungible Tokens, their viability and the world of Decentralised Finance that made its existence a possibility.


List of Content:-

Introduction to Decentralised Finance

The present financial infrastructure is largely centralised i.e. large institutions oversee smaller branches spread across regions, conducting transactions as a singular entity. The entities themselves are regulated by an apex central authority. Financial institutions acts as facilitators and guarantors of transactions, using their fame and prestige to provide a sense of stability and security.


Certain regions act as focal points or powerhouses conducting large scale transactions, essentially moving mountains of money around them. This has led to gaping regional disparities in terms of wealth and infrastructural development. Moreover, large institutions have a larger target on their backs. They are thoroughly audited and regulated since their failure can snowball into a worldwide financial crisis's evident by the 2008 financial crisis.


The Decentralised Finance or DeFi systems aims to shift from the myopic 'all for one' framework banks and financial institutions have operated into an all delivery mechanism providing financial service to everyone without the need for financial intermediaries or middlemen.

Decetralised Finance refers to the implementation of open source technology and software to create a blockchain network accessible by everyone without the need of banks and other financial institutions. It allows anyone to facilitate transactions between buyers and sellers or even borrowers and lenders.

The industry itself is new and budding with a developing infrastructure that leaves much to be desired. Regulation of the same are as minimal as The Wild West. Until now technology only existed to ease human burden and facilitate transaction however DeFi aims to make technology the focal point and building block of all financial services provided.


Most components of DeFi coincide with modern financial infrastructure i.e. the need of means of exchange and facilitation of services. Therefore the concept of crypto-currencies, stable coins, digital wallets and platforms were borne.

Smart contracts or self executing contracts contain terms of agreements transcribed as lines of code. They serve as a framework of functioning within the Decentralised Financial System.

The lines of code and the smart contracts themselves are stored on the blockchain. Since all transactions are executed on the blockchain they are all permanent and traceable therefore providing a sense of accountability. The mechanism allows for safety and security amongst possibly anonymous entities without the involvement of any apex legislative or enforcement entity.


Since DeFi is generally Open Source, it is essentially a stack of software that can be used by anyone to facilitate a financial transaction through a decentralised financial system. The aforementioned stack can be broadly classified into the following layers:-

  1. The Blockchain or the Network,

  2. Asset Facilitating exchange aka crypto currencies and stablecoins,

  3. Smart contracts acting as protocols enabling functionality,

  4. Applications that access protocols and facilitate transactions.

Block Chain

The creation of Blockchain is possible through cryptography. The essence of Cryptography lies in hiding in plain sight i.e. only those who are meant to understand and make use of it are able to see it. Therefore, The process can be broken down as:

a. the creator/prescriber of the content,

b. the content itself,

c. the intended user of the content,

and, d. the access or medium of exchange for content.


All of Decentralised Finance is made possible through blockchains serving as a vast compilation/list of records of data stored in blocks. The blocks also store a hash pointer that links it to the previous block, forming a chain. The hash pointer is a locating function that enables identification or tracking of specific data in the entire list.

How does Blockchain Work?

Image from 101Blockchains


A side chain enables conducting transactions on a separate 'chain of blocks' that are updated to the main chain later on. Side chains also minimise the minting cost of NFTs by minting in batches rather than single mints and use less energy. However it involves more steps and is a long process.


Cryptocurrency and Stablecoins

Cryptocurrencies use bits of data compiled as tokens to facilitate exchange serving as the 'currency'. Cryptocurrency designers are the creators intending the use of tokens as a means of exchange. Cryptocurrency users are the intended users that facilitate exchange and the 'access' is provided by the set of private and public keys the designer used to create the token and the user uses to purchase items.


Cryptocurrency facilitates most of the exchanges of Net fungible tokens.


Stablecoins are cryptocurrencies with a stable value or a pegged value. They provide a sense of security in a volatile market since they are pegged against a relatively stable asset, even a centralised currency. They may even be used as as an investment safeguarded against volatility in local currencies if their value is pegged against a relatively stable asset or currency.

ERC Standard Protocol

Software protocols are standards and rules governing specific tasks or activities.

The ERC standards on the Ethereum Blockchain enables:-

  • transfers amongst accounts,

  • tabulation and stating token balance of an account,

  • storing ownership details,

  • permitting 3rd part approvals,

  • tabulating the total number of tokens available on the network,

  • keeping track of each token exchanged in the network.

The ERC-20 standards enable each token to hold value and be exchanged, sent or received. The ERC-721 enables all tokens minted as per ERC-20 standards to link with each other optimally since it mandates ownership details, security and metadata to be instilled in its interface. The ERC-1155 standard reduces transaction and storage cost by enabling the release of multiple NFTs into a single batch.

NFTs are a possibility due to ERC Standards

Image from OpenSea.io

All NFTs are generally minted using the ERC-721 Standard since it allows the creation of unique Non-Fungible tokens on the blockchain. ERC stands for Ethereum Request for Comment and 721 is the proposal number it identifies as. All ERC standards complement each other and enable functionality of all tokens minted as a part of the ethereum blockchain.


Platforms

Platforms are the point of interactions for the clients or end users. These applications access protocols and use them to provide services to the clients as per prescribed norms. Aggregators connect one application to another to provide a seamless service to clients and expedite transaction speed for ex. Crypto Wallets.


Platforms mint NFT on the Blockchain and allow users to transfer NFTs and other assets between different blockchain, enabling cross platform showcasing. All NFTs are stored on a blockchain accessible through the owners and creators wallet.


A large variety of companies, software and platforms operate and integrate each other’s work to provide the seamless world in which users create, interact and transact in NFTs. While certain platforms provide a bit of each, the NFT industry can be divvied up into the following categories:-

  1. Tokens Exchange and Wallets: Refers to software applications that allow users to convert currency into cryptocurrency and store it. These include exchanges and wallet services like Exodus, Trezor Model T., MetaMask, MyEtherWallet, Eos, Neo , Tron and CoinBase.

  2. Decentralised Infrastructure: Blockchains and affiliated software companies which enable the minting of NFTs. For Ex. Ethereum, Flow

  3. Entities that want to release NFTs: These companies and individuals, belonging to a variety of sectors and industries, are interested in climbing aboard the NFT bandwagon. For ex. WWE, Celebrities and artists.

  4. Entities that assist in NFT designing: Certain companies are established to digitise and tokenize assets as per the behest of their clients. Large designing studios are involved in this space.

  5. NFT platforms on which the NFTs are listed and sold: These include Generic platforms providing a variety of NFTs and Specified Platforms that target a niche or specified sector. For ex. Exclusive Drops can be found on Nifty Gateway. OpenSea is considered the eBay of NFT markets. SuperRare provides funding of charities through proceeds. NBA Top Shot is a haven for basketball fans while Sorare is the best market for Soccer Fans.

  6. Platforms where the NFTs are stored and accessed: Lazy.com

  7. Augmented reality and Virtual reality platforms: these platforms operate in a virtual world where events and news may take place. For ex. Decetraland,.The Sandbox

  8. Data Aggregators: These companies run analysis on NFTs, the platforms and affiliated infrastructure. For ex. CryptoSlam, Orion, Once.

Why is DeFi the Future of Investing?

While traditional financial markets operate in a standardised 9 to 4 weekdays only environment, Decentralised Finance will bring a shift to a 24/7x365 operating capacity. Whats even better is that brokers are sidelined by the process and the power shifts into the hands of the buyers and sellers. Non-intervention of third parties will enable both sides to earn higher and pay lesser.


The DeFi system allows the buyers complete ownership of their assets.However security, debugging and scalability issues still persist as the technology and the companies involved in them are in a stage of infancy. The system is is not supported federally so losses can be utter and complete without any security.


It is up to the people involved and onlookers to shape the emerging markets, and with it the world as we know it. People either wish for it to dissolve or adapt by educating themselves benefit from it. The practicality of it is commendable since its cheaper and provides wider coverage.


Europe's shift to Open Banking System is the cornerstone laid by incumbent banks and financial institutions to maximise points of interaction with them. However, Decentralised Finance is an unprecedented mechanism that disrupted and sidelined them almost completely as the platform used to facilitate the exchange and avail financial services.


In the following section, a comparative analysis between Open Banking System and Decentralised Finance will further elucidate the difference between the two.

What is a Non Fungible Token?

NFT or Non-Fungible Tokens refer to digital assets encrypted on a blockchain. While cryptocurrencies are fungible ie. exchanged anywhere with anyone, the difference with NFTs is that they simply cannot be exchanged between one owner to the other owing to their irreplaceable uniqueness and digital representation of an asset.

Purchasing a NFT essentially means the purchase of a token/key to the digital asset. It represent the ownership of any unique asset and may even authenticate ownership of assets in the real world.

A single NFT contains the following:-

  • token identification details specifying exactly what the asset is,

  • a link or key to the digital asset,

  • the ownership history and information about the creator,

  • perpetual storage on a blockchain identifiable by token id.

A NFT enables the creator to make and sell multiple copies of the intended user keys that the purchaser gets. The key provides the link to said digital asset, which the user may use to display, copy or use the asset for a specified time period. The usage of NFT must be for non commercial uses though and The artist/creator retains the copyright of the digital asset that they sell.


NFTs can be used to represent ownership of any unique asset and even authenticate ownership of real-world assets as well as the digital world. They are a proof of certification that the user of the digital asset is in fact the owner of the Non Fungible Token.


The modern mechanism facilitates buying selling and owning on the internet in a revolutionary manner. The tokenisation enables storing important details about the digital asset within the token. NFTs have the following characteristics:-

  • Unique: No two NFTs are the same,

  • Indivisible: They exist exclusively as a whole item,

  • Indestructible: Exist on a bloackchain and cannot be tampered with,

  • Ownership of NF tokens is immutable, ie. buyers actually possess their NFTs instead of the companies that create them.

  • Verifiable: allow tokens and enclosed assets to be authenticated without the need for third-party verification.

  • Interoperable: Can be sold across a plethora of platforms.

  • Fractionalised: NFTs can have multiple owners however each owner has a different key i.e. own an exclusive NFT that the others don.t have access to.

  • Scarce, and thus have value.

How to Mine a NFT?

In oder to make a NFT, the creators must first become a part of the platforms involved in the minting and sale of Non Fungible Tokens. While some platforms demand an outright payment of registration, others have fees and commission involved in the process of making and selling an NFT.


After becoming a part of the network, platforms allow creators to upload their digital art/asset and make collections of them. However the process to get started is threefold, namely:-

  1. Making a 'Wallet' - Enables the storage and tokenisation of the NFTs. All charges and expenses are cleared through this account. Charges include Gas Fees or computational charges for tokenising the digital asset.

  2. Tokeninsing of the asset- Creators can choose to create the NFT they want by simply uploading it. The creator can decide how many copies of the NFT is willing to create.

  3. List NFT on the MarketPlace and pay all associated gas fees through the crypto wallet.

Creating a NFT on OpenSea

Once all transaction charges are cleared for tokenising and listing the NFT, the platform will then list the NFT in the marketplace.


How much does it cost to mine a NFT?

As a creator, the following expenses are incurred to mint and showcase one's NFT on a platform:-

  1. A minting fee to create a nft- the minting fees is a conversion fee to convert the digital asset into a NFT and issue a certificate of authenticity,

  2. A listing fee to present a NFT on a platform,

  3. Platform commission fees on sale,

  4. Transactions fee to withdraw the money/payment.

Some fees are charged up-front i.e. on registration while some platforms deduct fees from the sale proceeds. Mintable charges around 2.5% of the final bid while Opensea has a $150 registration payment after which the creator can mint unlimited NFTs. Mintable also allow users to opt for traditional(advanced) or Gasless(easy) method of creating NFTs. Valuables by Cent charges no such fees but has a low payout.


Confusion about Gas fees and commissions has caused some creators to lose a lot of money. Gas Fees refers to the computation fees or simply the fees charged to complete a task on a blockchain system. Performing such tasks expends a lot of energy which the creators and occasionally the buyers of NFTs are subjected to pay.


Since the fees are payment towards the energy consumption for blockchain activities, Gas Fees may increase or decrease depending on the number of users presently using computational functions on the blockchain to access and handle their NFT investments or creations.


NFT platforms are working on a proof of work model which means one has to spend money to use the mechanism the blockchain and platform otherwise everyone would be spamming the marketplaces.

Gas Fees pose a risk to new users since they are generally unaware of them. New and non-verified creators are expected to earn a modest sum for their NFT, and possibly spending 70-80% of the NFTs purchase price as fees for creating it.


Additionally, they are often in the fine print of agreements and do not alert the wallet owner. It seems like like the mechanism expects the users to be aware of Gas Fees regardless of one's experience with DeFi.


Value of a NFT, Who holds the keys?

While owning the Non Fungible Token grants the purchaser the ownership of the digital asset via the owner's private key, the value of the NFT is contingent on who holds the public key i.e. the creator of the token and the underlying digital asset. If the creator is a verified and popular source, for ex., Beeple or widely popularised celebrities, the value of the NFT is more likely to be high.


The ownership history of non fungible token is also a determining factor in the valuation as well as the time limit left to use, copy and display the asset.


The platform or website involved in the sale of the Non Fungible Token also plays a role in the valuation process since verified exchange networks like Soothebys or Christies are considered trustworthy. If the niche of the platform resonates with the type of NFT the creators drop, prices for them are likely to be high.


Considerations before Investing

The world is full of NFTs and the amount of tokens to be released stretches miles beyond the horizon. In time the market shall reach its saturation point. Some claim that the marketplaces involved with NFTs do not always accurately detail/describe the value of the merchandise they are selling. In such conditions, it is highly possible that investors may get lost while charting the world of NFTs.


The value of NFTs like cryptocurrencies are speculative at best. The answer is simple, treat it like any other form of investment. Use it as a means to grow wealth rather than owning it for the sake of it. This excludes all NFTs purchased as merchandise of celebrities or popular entities driven by a 'sentimental values'.


Key Statistics of NFTs

Image from CoinRanking.com


People should not place all their eggs in the virtual basket just as yet since the market is comparatively volatile and the value of NFTs greatly depends on how much the investors are willing to buy it. The marketplaces are relatively new and budding compared to the mechanisms set by financial barons and moguls of old.


The NFTs are dependent on them and hence their survival is a must for facilitating exchange of the tokens.Investors must also strategise how they will liquidate their digital investments should the need arise.


Investors must therefore possess innate knowledge of the type of digital asset, the market mechanism under which it operates, an assessment of the value proposition and what makes it unique and scarce.


Formulating such strategies requires inept knowledge of the sector and the services availed. Readers maybe interested in the browsing through Mark Wilson's 'Relative Strength Index (RSI) for Bitcoin, Forex or Stocks' or Manraj Degon's 'Technical Analysis Ultimate Guide for Crypto, Forex or Stocks' for starters.


Currency Strength maybe estimated through Marcus Raiyat's 'Top 3 Best Currency Strength Meters - Detailed Analysis'. Charting alternative investment strategies is also made possible through Forex Trading for Beginners where anybody, at any level can learn to trade forex, and lots more offered at Logikfx.


Sale Mechanism Models

The technology and royalties involved in NFTs are more intriguing/attractive than traditional selling mechanisms. The real power lies in the distribution control for creators, enabling a direct relationship with clients/buyers. While all platforms believe in showcasing unique products, they may employ a variety of selling mechanism to highlight the scarcity of the NFTs.

The Scarcity-Hype/Auction Model

In spite of the NFTs being digital assets, they have adopted the principles of real world assets pertaining to the scarcity model i.e. people are willing to purchase an item at higher prices if the availability of said item is scarce. This artificial scarcity helps in enhancing the perceived value of the NFTs.


NFT releases are hyped up and widely advertised as 'drops' before the initial release in order to maximise the bids placed. This frenzies the buyer much likes humming shark infested waters. The popularisation of NFTs and their creators help in cultivating an investor base consisting of all interested buyers and investors.


Non Fungible Tokens are fetching a nice price owing to the auction based selling mechanisms. The auction starts once the first bid is placed for a specified time period, after the conclusion of which the highest bidder becomes the owner of the asset. The initial bid starts at $100 however bids pile up to exorbitant price tags.


In the following section the variety of sale mechanisms employed will be elucidated:

The Limited Edition

Companies have come up with limited and special edition NFTS for their market places. Such NFTs are generally produced by celebrities and other popular artists that limit their collections for maximising scarcity value. By selling Unique items for a specified time period over a specified marketplace enables the platforms to tap into the niche.


For Example: NBA topshot limited edition NFTs attract NBA fans that can procure digital sports card with officially licensed video highlights.


The limited edition selling model creates unwarranted urgency around the products and at times over inflates the bids which maybe disheartening for certain clients.


The Mass Produced Model

Under this model, anyone may mint a NFT of their liking and present it on the platform. Such NFTs are generally one of a kind and represent the artistic and aesthetic work of the creators. NFTs are dropped either in batches or one by one and therefore involve large computing costs.


However, it allows a wide variety of sellers to showcase their NFTs and accumulate bids. The mass produced model is much like the amazon of NFTs.


The Grade Model

Platforms like Decentraland grade some of their pieces as common, uncommon, epic and legendary. This grade determines the prices that one may buy or bid an NFT for. The grade also gauges the supply of the NFT item, for ex. Legendary items are only around 100 maximum.


The Grades serve as an indicator of quality for the NFTs with legendary being the highest quality and common being the most available.


Who is in the Bandwagon?

  • Ashton Kutcher, Mark Cuban, Snoop Dog and Guy Oseary are collaborating on a NFT themed Shark Tank called 'The Pitch'. Mark Cuban has also created Lazy.com that allows users to buy and sell Non Fungible Tokens and invested in NFT data aggregator 'Cryptoplasm' that provide statistics for any NFT platform. He has also announced that tickets to his Basketball team, Dallas Mavericks, will be available as NFTs.

  • Croatian Tennis Player and World #30 Oleksandra Oliynykova sold lifetime ownership of a part of her right arm as an NFT for over $5,000. The owner of the NFT will determine a tattoo that Olinykova will display on the portion of her arm.

  • Don Diablo released a full concert 'destination hexagonia' on Superrare as a NFT which sold for $1.2 million. The Weeknd also released a song as a NFT while Kings of Leon are the first band ever to release an entire music album as a NFT. DJ Steve Aoki launches Sci-Fi themed NFT on NiftyGateway.

  • BitTorrent's CEO Justin Sun acquired a Picaso painting for $20 million, tokenised it and released it on his newly released JUST NFT Fund.

  • The Rally Network known for letting creators release their own cryptocurrencies called creator coins which trade on the Ethereum blockchain has raised $57 million to launch an eco-friendly NFT platform over the summer.

'Underwater City'

Image by @sherif.arts

  • Artists like @annadreambrush have released fully immersive mixed reality artwork.

  • Kate moss to release photos of herself as NFTs with a voice recording of her acknowledging the ownership of the NFT.

  • Investors like Pablo Rodriguez bought Beeple's NFT at $67,000 and sold it for $6.6 million. MetaKovan bought Beeple's NFT for a whopping $69 million.

  • IBM sets out to turn its patents into NFTs.

  • Colborn Bell cofounded the Museum of crypto art and has invested in over 2000 NFTs worth $400,000.

  • An NFT of the first tweet ever sold for $250000. Russia waves sells duck NFT 'Perfection for $ 1 million. Bitcoin's origin (4 MB Block) sold for $345,300.

  • Dapperlabs creates NBA topshot and raises $305 million at a $2.6 billion valuation and again at a $7.5 billion valuation. A 2019-20 Lebron James dunk sold for $208,000 on NBA topshot. They previously released CryptoKitties and are now planning to release a new platform called 'Genies Marketplace'.

'Pac-Bit'

Image by @designgeo

  • EthernityChain to release a Pele NFT on May 2 of which 90% of proceeds go to the Pele Foundation.

  • Basketballer Yao Ming releases a NFT from his napa valley winery called 'Chop Drop'. Damian Lillard announced #DameTime NFT series to be released on opensea. Golden State Warriors gear to launch their own NFT collection making them the first team to do so. Crypto kickers and NBA veteran Wilson Chandler sign the first ever all Virtual shoe deal.

  • NYSE auctioned NFT of several companies such as Spotify, Unity, DoorDash, Snowflake, etc. commemorating the first time they went public.

  • Jake Paul releases Boxing NFTs called 'The future of Boxing' and sold his knockout of Nate Robinson as an NFT for $10 million. He also launched Triller NFT marketplace. Logan Paul made $3.5 million selling NFTs in one day.

  • Snoop Dog releases 'A Journey with the Dogg' NFT collection on crypto.com. His take on Nyan Cat called 'Nyan Dogg' sold for $33,000.

  • Pro Gamer diamondcon sold a Call of Duty clip as an NFT.

  • NSA whistleblower Edward Snowden sells NFT for $5.4 million with proceeds going to the Freedom of the Press Foundation.

'Dream Bubble'

Image by @skip_closer

  • JA Rule makes a platform that converts NFTs into physical art known as flipkick. He previously sold the Fire Festival logo's oil painting for $122,000 as a NFT. The infamous Fire Festival cheese sandwich tweet is being sold as an NFT by Trevor DeHass.

  • Krista Kim designs 'Mars Home', the first digital NFT home in the world on SuperRare which sold for $512,000.

  • Lindsay Lohan released new single 'lullaby' as an NFT on Fansforever that sold for $85,000. Doja Cat curated her own NFT marketplace called 'JuicyDrops' and dropped a NFT collection.

  • Elon Musk's Tweet about selling a song referencing Dogecoin and NFTs is sold as a NFT. 69 stoned Elon Musk NFTs sold for $420.69 each on 4/20. His girlfriend and Musician Grimes made $5.8 million in less than 20 minutes selling NFTs.

  • Tory Lanez is the first rapper to launch unreleased songs as NFT. 6ix9ine to release two NFTs as well. Meek Mills hints at releasing his next album as a NFT. Eminem raised $1.78 million from his first NFT collection drop.

'Mountain Whale'

Image by @wowmello

  • Taco Bell released Taco themed NFTs for a dollar each on Rarible that are now selling for over $3,500.

  • Grow, a blockchain based medical marijuana company launches NFT giveaway. Califari and Meridia Capital holding to create a platform to buy and sell cannabis NFTs.

  • Fashion brand BAPE is launching 5 NFT designs on mintable.

  • Ellen DeGeneres dropped her first set of NFT, raising $33,495 for charity.

  • Tom Brady launches NFT platform 'Autograph'.

  • Sport trading cards company Topps launches NFT and goes public. They released the official NFT baseball cards on 20th April.

  • Paris Hilton collaborated with digital artist Blake Kathryn on a NFT collection called 'Planet Paris' raising over $1.1 million.

  • Youtuber Mr Beast and Binance invest in NFT Marketplace called 'Refinable'.

  • A Chadwick Boseman NFT artwork was sold to support the colon cancer foundation. The artist received sever backlash for profiting of the renowned dead actor.

'002 the last tree'

Image by @gabxtoth

  • A Basquiat original is to be released with provisions for the owner to destroy the original.

  • Mad dog Jones' Replicator NFT sold for $4.1 million. It is unique because it is a NFT that creates new NFT artwork every 28 days.

  • 'Disaster Girl' Zoe Roth turned her meme into an NFT that sold for $500,000. Laina Morris aka The Overly Attached Girlfriend auctioned her meme as a NFT for £335,000. Many other faces of popular memes also raked in a big payday from the sale of their NFTs. DudeWithSign auctions three NFTs for over $20,000.

  • Emily Ratjakowski will be minting an NFT that is to be auctioned off on Chrities. The NFT will contain her photo in order for her to gain authority over her own image that an artist used in his project.

  • All 44,694 tweets of Donald Trump to be sold as NFTs. A NFT called 'Crossroad' created by Beeple featuring a large naked resemblance of Donal Trump lying on the ground with profanities etched on him sold for $6.6 million.

'Sky Maintenance'

  • David Guetta to release NFT titled 'United at home'. Kygo announces his first NFT release and 3LAU sold his album for $11.6 million as a NFT. Calvin Harris to release NFT song 'technofish' on Nifty Gateway. ASAP Rocky to offer NFTs with a chance to win a car or visit ASAP's recording session.

  • A Saturday Night Live Short Clip about NFTs to be sold as a NFT.

  • WWE releases Undertaker NFT with iconic moments from his wrestling career on bitski under four categories (Bronze, Silver, Gold, Platinum) .

  • eBay explores the possibility of entering the cryptocurrency and NFT space as a marketplace. UFC plans on launching its very own cryptocurrency and NFT collection.

  • An Italian company called OVRai is tokenizing and selling Eiffel Tower on OpenSea priced over $28,000.

  • Club Amesia Ibiza to launch a virtual nightclub on the ethereal blockchain in partnership with Decentral Games.

'Moon Light(2019)'

  • Pro-Footballer DeVonta Smith launched a NFT called smittycoin that allows the buyer to gain access to different normal day experiences of Smith. NBA prospect Jalen Suggs is auctioning his greatest college basketball moment dubbed as 'The shot' on OpenSea.

  • Mick Jagger has announced the release of an 'Easy Sleazy' NFT with aim to raise money for indie music venues. Playboi Carti launches an official song as a NFT in collaboration with RhymezLikeDimez. A Kurt Cobain photoshoot is to be released as an NFT dubbed 'The last session' by photographer Jesse Frohman.

  • Zed, a horse racing game, offers players a chance to buy, sell, race and breed digital racehorses in a stable. The horses have their own distinct bloodlines and pass them on as genes.

  • Tradestars launch IDO(Initial Dex Offering) for their blockchain powered fantasy trading game. The game allows users to buy NFTs representing real life athletes, whose value changes as per their actual performance.

  • Crypto streamer and ThetaDrop launch partner BitBoy is set to launch his NFTs on ThetaDrop in May.

'The Last Roll'

Image by @stefankoidl

  • Muhammad Ali Enterprises partnered with Eternity to launch NFTs based on the iconic boxing legend. Viral sensation and World Champion skim boarder Austin Keen launched his first NFT on OpenSea.

  • Playboy is geared to launch digital art NFT from its photographs in collaboration with Nifty in June. World Poker Tour is set to co-launch their very own NFT Marketplace and drop a rare and unique moment as a NFT.

  • A single gray pixel dubbed as 'The Pixel' created by artist Pak auctioned for $1.7 million on Sotheby's.

Benefits of Non Fungible Tokens

To The Creator

  1. NFT enables creating a new form of value for the fanbase,

  2. The token contracts allows creators to earn a percentage from all future sales hence creating a royalty based income,

  3. Easy to authenticate creator status,

  4. Can determine the scarcity and value of the asset

  5. Can present and sell NFTs across multiple platforms worldwide,

  6. Maximised earnings by removing middlemen.

To The Investor/Buyer

  1. Easy to authenticate ownership,

  2. The NFTs cannot be altered externally,

  3. Can be resold or held perpetually,

  4. Holdings exist beyond a single platform.

Challenges Faced by NFTs and How to overcome them

  • Problems Faced with Digital Ownership and Copyright Infringement need to be resolved,

  • Lack of details/descriptions of NFT on the platforms they are displayed on leads to confusion amongst potential buyers,

  • Platforms need to develop better user experience and interfaces,

  • There is confusion regarding gas fees with new entrants and users that needs to be resolved,

  • NFTs need to be more accessible and not just limited to cryptocurrencies. Some companies allow users to buy NFT using credit cards instead of crypto wallets helping them avoid additional conversion fees,

  • The change in the value of the affiliated cryptocurrencies causes volatility in the realised value of the NFT asset and is therefore contingent on cryptocurrency platforms,

  • The blockchain must be streamlined in order to alleviate the environmental impact of NFTs and DeFi,

  • Contingent on the platforms that grant access to it, without which owners lose access to their investments. Downloading the NFT enables the owners to have a copy of the digital asset even if the platform stops operating.

  • High fees and commission charges for relatively new creators. may end up spending upto 80% of income on commission and fees which is only slightly more than traditional platform selling. the standing of the artist improves with subsequent release of NFTs and lead to increase in earnings. the creators may also opt for platforms that charge low commissions and gas fees.

  • If the owner happens to lose their key, they loose access to their digital asset. the investment will be lost to them for good unless it is stored properly in websites like lazy, etc.

When one buys expensive art they simply do not put it on the curb. Likewise proper storage is mandated when it comes to NFTs. Separate global networks have been created to permanently store digital assets such as Interplanetary File System (IFPS).


The Fall of Cryptocurrencies & What it means

For NFTs

Most NFTs are valued in cryptocurrency therefore the value of cryptocurrency may affect the price of the digital assets. A fall in the value of crypto means value of existing NFTs tumbles. However, a drop in prices doesn't necessarily mean an all out loss since it may trigger a buyer's frenzy.


The latest fall in cryptocurrency prices did not discourage buyers who were more than willing to spend lesser to procure digital investments. As long as the market and parties involved have confidence in NFTs and crypto-currencies, a fall in the value of cryptocurrency may just be beneficial for digital investments.


For Creators

The cost of creating NFTs is pegged as cryptocurrencies so a fall in the value of cryptocurrencies mean that creators will have to spend lesser overall to bring their NFTs to market. However, this is a double edged sword since their earning capacity is also diminished.


Subsequent sales of their assets will still enable creators to earn royalties from their existing collection of NFT releases. A decline in the value of cryptocurrencies will diminish the earnings of creators who may want to wait for an uptick before converting their sales into currencies of their preference.


For Investors/Buyers

From an investment point of view, buyers will be able to procure cryptocurrencies and NFTs at a lower price point which may prove to be beneficial for them. However, the value of existing holdings are sure to take a tumble. Investors may opt to liquidate their NFT holdings in currencies other than cryptocurrencies.


Holding their investments till an uptick in the value of cryptocurrency will help them reap higher than usual rates. A buy and hold strategy is recommended by experts for all investors as the sector is on the precipice of transformation into a mainstream product.

Conclusion

It can be concluded that the world of NFTs are seemingly inflated by speculation, hype and new entrants to the sector. From an investment point of view most NFTs are speculative at best and require little to none technical analysis at the moment. The risks and rewards are grand. However the same could have been said for Bitcoin which is now worth JP Morgan, Bank of America, Wells Fargo and Citibank combined.

NFT is a viable proof of concept for a digitally decentralised future however its market value is not comparable to the like of decentralised behemoths that came before it like Bitcoin and Ethereum.

The asset proves its viability for creators since it maximises their earning potential compared to traditional selling mechanisms/platforms. With further development in the sectoral infrastructure it can be hoped that their costs will be minimised along with the energy consumption of the sector that has raised some concerns.

The practicality and applicability of NFTs is limitless however some regulation in the sector maybe mandatory for it to become the new norm. As companies now accept cryptocurrencies as legal tender, it can be hoped that NFTs too become the new norm of selling digital assets and deeds to physical assets in the near future.

Whether we like it or not, NFTs and Decentralised Finance are here to stay since they provide financial solutions that traditional and incumbent financial system just couldn't. NFTs challenged our perception of asset ownership and shifted the power from middlemen to the buyers and sellers .


While the drop in the average prices of NFT may be considered as a bubble burst, it can also be considered as weeding out of the weak and fads who aimed to capitalise on the initial hype.Scaling up NFTs may now truly begin since data aggregators have diligently accumulated statistics pertaining to investor sentiments and efficiency of platforms.


It bodes well for the security that even the NYSE has released NFTs on their own. With new platforms targeting new niches, the potential to transform the digital and physical world is limitless.








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