Wealthy people compete to own works of art. Internet nerds have their counterparts – NFT tokens, which have recently become very popular and reached high values of several million dollars.
The author of the text is Jakub Putyło – Personally, a lover of cryptocurrencies, blockchain and cycling (head of the support team of ultra racer Remek Siudziński), as well as espor (formerly a member of the editorial board of Pentagram G-Shock Gaming). Professionally, he is a business developer at a company engaged in the production of software for companies in the fintech and healthcare industries using blockchain technology.
After all, it is normal for the villains mentioned above to be among the wealthy. These people also have their own investment needs – this is the basis on which NFT tokens are created. This allows them to create and manage property rights through a decentralized, distributed network, including the ability to make money from it after acquiring any value. Thus, NFT tokens have become an extremely interesting offer in the world of investment, and it’s time to say: this is not a song of the future, but a reality that is already waiting for us.
NFT (Non-fungible token) is nothing more than a token built into the Ethereum network, but on a different standard. Typical ETH tokens are the ERC-20 standard, while NFT is the ERC-721 or EIP-721 standard (details here >>). There are other, newer standards, such as the ERC-1155 used by ENJ Coin.
The uniqueness of NFT tokens is determined by their uniqueness – each of them is different and it is impossible to copy them. Of course, the idea of using NFT tokens to verify authenticity arises.
Earlier there were Crypto Kitties …
The idea of NFT tokens stems from the characteristics of the blockchain network – it’s about uniqueness, counterfeiting, inability to reverse edit and transparency. The history of NFT tokens began around 2012, when the possibility of using bitcoin units that could represent different types of value (stocks, voting rights, or collection items) was explored. It turns out that Ethereum is a better solution for this type of purpose, and NFT tokens have become a permanent device in the second most popular blockchain network.
NFT tokens became very popular in the second half of 2017 due to the hype associated with cryptocurrencies. Then, for the first time, Crypto Kitties appeared, ie only virtual Tamagotchi in the blockchain. Their unexpected popularity literally blocked the network, and the price of gas (“gas” is the Ethereum operating fee in the colloquial language) flew into space. It also showed that the team of Vitalik Buter (creators of Ethereum) still has a lot of work to do.
… now Crypto Punks and …
We all know what cryptocurrencies are like this year. With the advent of the cryptocurrency market again, new creations have emerged, such as decentralized finance (defi) or modern artwork (based on NFT tokens).
Startups compete to create places where such works of art can be created, purchased or exchanged.
One of the most popular places on the Internet to trade NFT tokens is OpenSea. Crypto exchanges are also trying to stay afloat and are starting to offer NFT trading. Binance was the first exchange to decide to allow its users to trade NFT. Krzysiek Gonciarz has been invited to take part in a marketing campaign in Poland (more information here >>)
This use has appealed to so-called digital creators (photographers, influencers) or standard celebrities. Sometimes there are reports that someone known in the market has issued NFT tokens (Messi, Jay Z or Snoop Dogg).
Recently, the influential Polish Martha Rentel sold “digital love” for almost a million zlotys.
However, the real hit was a copy of Crypto Kitties – Crypto Punks. The Internet community was literally so mad about them that one of them sold for less than $ 12 million.
At the beginning of the previous one, a new madness appeared – Pudgy Penguins. My Twitter is full of penguins in a variety of outfits – from sunglasses to evening wear. Thanks to all the new NFT tokens on sale. The starting price was set at 0.1 ETH and the sale ended after 19 minutes. How many penguins are currently on OpenSea? Check … -> https://opensea.io/collection/pudgypenguins
Metaversum – what is it?
For some time now, many people in the “industry” have been predicting the rise of Metaversum or the alternative world. It is a digital world with its own identity, community and forms of governance. Many well-known companies are announcing a return to this creature. The head of Facebook recently announced that the portal will explore the possibility of joining the metaverse. Epic Games (founder of Fortnite) has raised $ 1 billion to create its own version of digital reality. Recently, Zoom had the idea to make video calls instead of people sitting in a room with avatars (in our way) talking to each other. That’s interesting, isn’t it?
Metaversum fans believe that our digital identities will one day be as important as those offline, that instead of buying designer clothes, we will wear our avatars in Gucci or Armani skins, and our artwork will be NFT in the background at Zoom instead of pictures. on the wall at home. Interesting moments are ahead.
NFT as an investment
Consider how NFT tokens can bring us any financial benefit.
In the short term, in my opinion, not necessarily, but it depends …
If you are an influencer and have a large community, you have a good chance to sell love or other feelings, or if you don’t know a part of the body (of course, practically) and you make good money. What about grays? I think it will not be profitable for ordinary people in the short term.
In the long run, the situation is changing dramatically. A long time ago, I was able to catch dozens of NFT tokens on free airdrops (editor’s note. Airdrop is an organized campaign to issue tokens in exchange for social media marketing activities such as page likes or retweets). Of course, at that time it was either worthless or low (<$ 1). You won't believe my surprise when I have an airdrop wallet (I use a separate metamask wallet to collect airdrop for safety) and it costs about $ 1,000.
Therefore, I invite everyone to study the subject in depth, because something that has no value now can change its value in 3, 5 or 10 years.