Three letters has become one of the more recent terms that have exploded in popularity. It is NFT, Non-Fungible Token, a certificate that authenticates digitally through blockchain technology, the same technology used in cryptocurrency (token), associated with a unique digital file. best. A new form of digital (and business) expression has been built.
Today, this is one of the most popular topics and articles on the topic can be found on the writing service. In this post, we will try to understand as deeply as possible what NFT is.
Now let’s move all of this to digital. NFTs are individual units – images, video, audio, text or compressed files – with a single value. It may be because each digital asset has an identification number where metadata (author name, initial value or sales history) is recorded using blockchain technology, ensuring that the part cannot be be duplicated Click here.
With these premises in mind, these assets sparked a new gold rush in the form of crypto art. Selling NFTs is a new way to (try to) make easy money in the online world. Many artists, influencers, celebrities, companies and organizations are jumping into the race.
In just one year, in 2021, NFT in the form of artwork files, memes, stickers and anything that can be recorded digitally has generated more than 3 billion euros. Another thing, as we will see later, is what the market will look like in the first quarter of 2022.
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The Beginning of Nft
The first NFT project, promoting the new cryptocurrency concept, was implemented in 2017 through the Ethereum network, an open source platform used to execute smart contracts. Cryptopunks, a limited collection of 10,000 original characters (no two characters are alike) created by two young Canadians, Matt Hall and John Watkinson (LarvaLabs), has achieved unprecedented success. .
With the idea that each character can have only one owner – recognized by blockchain Technology – a quick buy and sell market is created in which punks (24 x 24 pixels in size) change hands for bidder.
In May 2021, pioneer Larva Labs sold 9 crypto punk heads for $16.9 million. A year later, the cheapest punk was up for sale for just over $96,000.
$69 million for an Nft
Exact dates can also be recorded when NFTs enter a new dimension. It was March 11, 2021, when the JPG file ‘Everyday – The First 5,000 Days’ (‘Everyday: the first 5,000 days), created by artist Beeple (Mike Winkelmann), sold for 69.3 million dollars (57.8 million euros) by Christie’s Auction House in New York.
From a ‘tweet’ to A Van Gogh
Since then, news of crypto art pieces has multiplied all over the world. Not leaving March of that year, a columnist for The New York Times sold an article for $560,000; an internet user bought a digital chrome of Cristiano Ronaldo for 240,000 euros; Jack Dorsey, the co-founder of Twitter, sold his first tweet for $2.9 million and someone bought a Shopia robot digital portrait for 650,000 euros in auction .
Back in April 2021, the main character of the famous Meme Disaster Girl pocketed $500,000 from the sale of the original file. In July, Berners-Lee made 4.5 million from the sale of the original WWW archive he developed in 1991. And back in September, Russia’s top museum, the Hermitage in St.Petersburg, raised nearly half a million dollars by NFT auctioning works from its collection, namely Van Gogh, Kandinsky, Da Vinci, Monet and Giorgione Click here.
Nba and tournament card
The sports world has also seen in the NFTs a new business area to tap. The NBA has split great games from North American basketball history in virtual sticker packs with prices ranging from $9 to $299, creating a new business model. And LaLiga has reached an agreement with Sorare, a company owned by footballers such as Gerard Piqué, Antoine Griezmann and Rio Ferdinand, to distribute NFTs of players and thus open up a new revenue stream. for clubs. Brands like Marvel are also developing their own certified files.
Metaverse, where a digital yacht worth US$650,000
Special mention should be made of the metaverse, a new parallel in which tokens can establish themselves as a potentially valuable business. It’s not for nothing that $650,000 was paid for the Mataflower, a digital yacht made of bits and bytes, in the Sandbox multiverse.
Back to real life, galleries and auction houses continue to enter the world of NFT. For example, Julien’s Auctions in Beverly Hills auctioned off a Gibson ES-335 guitar by Keith Richards, accompanied by a clip of the rolling stone stamping his signature on the guitar.
What about the crypto crash?
So much for the stratospheric emergence and rise of the NFT. It remains to be seen whether these digital certificates are on top of a wave or in a bubble that will burst sooner or later. It’s not for nothing that these tokens are associated with cryptocurrencies, they have been going through a fragile moment recently Click here.
In mid-May 2022, crypto investors panicked and the market bled with the collapse of Bitcoin and other cryptocurrencies (LUNA and TerraUST bore the brunt). Rising interest rates, inflation or the Ukraine war would explain investors fleeing riskier assets.
Since the start of the year, NFTs showed similar symptoms to cryptocurrencies and closed the first quarter with a market crash.
Now is the best time we can be. Almost no NFT is emitted because there is no more noise. Now you can focus on those who are still working with the bear market. This is the best time.
