Everything You Need To Know About NFTs – The New Crypto Making People Millions
Understanding the workings of NFTs
Hello there, and welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be discussing the new crypto booming up the whole market – NFTs. This crypto has literally made broke and average people millionaires in dollars overnight.
I know you're excited about it already, but before you try to invest in it, you have to understand the basics of NFTs. So without any further ado, let's dive in!
What is an NFT?
An NFT stands for – Non-Fungible Token. But what does that mean? In technical terms, NFTs are designed based on blockchains like Bitcoin, Ethereum, Cardano, Polkadot, etc. There, people stake money into smart contracts and issue their own uniquely customized tokens to which digital arts are attached. Stakes made into NFTs are liable for exchange, buying, and selling anytime.
Are they treasured, as many say?
Oh yes! NFTs are as valuable as any piece of art in the world – they're valued for the same reason you would appreciate any work of art. It's rare, and people want it.
Aren't NFTs digitally sold? Why are they rare, then? Can't creators just make more of them?
Sorry to burst your bubbles, but no, they can't be made excessively. NFT creators are not permitted to mint the same token excessively due to its presence on the blockchain. This same rule also applies to Bitcoin, which has only 21 million (max) coins that can ever be produced.
So it pretty much means that once an NFT contract is written and the rules have been mapped out, as soon as the token (NFT) is launched, the creator cannot step in and just create more.
Although the creator can make more editions of that token, it would have variations in the ticker symbol or launch date, which is provable by the blockchain and would definitely not be the same as the original, even if the artwork was redesigned to be completely identical.
They have value because creators attach physical assets or invitations to experiences and collaborations with the token owners. This is a big part of NFTs that really help them shine over their physical counterparts.
Which ones are worth buying?
Here are my 3 criteria to look at. Try not to smile when you find out how I coined out my criteria:
(1). Notorious
The creator, brand, or genre of the NFT should be someone or something "notorious" or famous. The bigger the fame, the more safe your investment will be. Global brands have been known to always have fans that support their favorite creators.
(2). First
The NFT should be the first of its kind in the industry. Everyone naturally wants a piece of history. The first-mover advantage is everything in life nowadays, so if you can buy into something that is 'first,' chances are it will be highly valued by fans of that artist, brand, or genre.
(3). Tangible
Ideally, the NFT should have something more than a digital element attached to it, like an experience or a physical asset behind it. Something similar to Logan Paul's (Famous American YouTuber) NFT, where many had a chance to meet him in real life.
(4). Scarce
This is no doubt a bonus. Because the more rare something is, the more valuable it will be.
Disclaimer: These criteria are made up and fictional, but it's a way to easily remember the best NFTs are one that has the NFT factor:
– Notorious – Non
– First – Fungible
– Tangible – Tokens
Which NFTs are the best?
(1). Sports:
Recently, paying close attention to sports NFTs would really pay, as they're going to be huge. NFTs will allow players to negotiate the rights over the footage of themselves playing.
That's an entirely new way of monetizing sports.
(2). EDM Music Industry
EDM (Electronic dance music) is an umbrella term for a broad range of percussive electronic music genres made entirely for nightclubs, raves, and festivals. Artists like Marshmello, Avicii, Skrillex, David Guetta, etc., are into this genre of music.
The EDM scene is unbelievably enormous, and the artists can generate hype like nothing I've seen before, with the fans becoming extremely loyal. This scene is set for tremendous growth.
Are we in a bubble?
Short term, who knows? Long term, we are just getting started.
Where can NFTs be bought?
Top NFT marketplaces available all over the place include; OpenSea, SuperRare, Rarible, Foundation, and Multiple.
Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading!
Tags:
Business and Finance