NFT tokens - investment hit or kit? We explain what NFT tokens are

Sales of NFT tokens fell to USD 8,7 million in the first two weeks of June. Still a lot? Not really, because in May it was $ 176 million, so some experts predict the end of fashion. Or is it the stabilization of a market that will now reasonably grow, as other commentators believe? Let's take a closer look at non-exchangeable tokens and the prospects for earning on them.

What is NFT?

First, let's explain what NFT really is, i.e. non-exchangeable token (Ang. non-fungible token). In a nutshell, it is based on blockchain technology certificate of ownership given to digital goods. It's still a digital token, but unlike cryptocurrencies - you can't trade NFT in pairs. A "non-convertible" NFT token can therefore only be sold / bought for cryptocurrency or fiat currency. 

By purchasing an NFT token, we become the owners of not only the collector's image of the Juventus Turin football player and the Portuguese national team Cristiano Ronaldo, or the painting of a famous painter, but most often also the property rights to it. 

Virtual cats for 100 thousand. USD

CryptoKitties

The first attempts to introduce NFT tokens appeared in 2012, but only 5 years later they gained wider publicity thanks to the game CryptoKittiesthat allowed its users to adopt and trade virtual cats. It turned out that the rarest and most difficult to get cats reached dizzying prices of up to 100. USD. At the turn of 2020 and 2021, the greatest craze at the NFT took place, when virtual equivalents of the works of artists, athletes, celebrities and influencers appeared. 

The collapse of the NFT market?

Today, however, analysts are alarming about the collapse of the market. NonFungible estimates mid-June NFT sales were $ 8,7 million, compared to $ 176 million in early May. In the entire first quarter of 2021, the value of NFTs sold amounted to as much as USD 2 billion. In the whole of 2020, it was USD 338 million. In the last 6 weeks, however, NFT sales fell by 95%. Is this the end of fashion or maybe a speculative bubble burst?

- More important for the NFTs is their long-term value, which we believe is very significant. Remember that as augmented and virtual reality technologies mature, people will spend more and more time in virtual environments and spend more and more money there - underlines Nadya Ivanova from the research company L'Atelier in an interview for CNBC.

This may be indicated by the growing interest in the market. Although sales fell, because there were no recent investment hits, in May and June there were already 45 thousand. new wallets that entered into a transaction with NFT. Most of those created at the turn of 2020 and 2021 are also still active, and the rate of new users remains constant at 25%.

Why NFT works?

Okay, but why should anyone buy NFT tokens? Some compare it to songs that can be listened to for free in applications, but there are also those that offer to buy and listen to them, e.g. without advertising. It's not quite a good comparison. The NFT token is a complete acquisition of a good, confirmed by a blockchain certificate. This is what creates their value, because we have confirmation of their originality - like a watermark on a banknote or the opinion of an art expert about the originality of a work of art.

The NFT token can be created by anyone. For just a dozen USD, you can create NFT tokens based on our work: music video, song, image or anything else. And you can earn a lot from it, not necessarily being an artist. 

Binance launches NFT Marketplace

On June 24, 2021, the largest cryptocurrency exchange - Binance - launched a platform for trading NFT tokens - Binance NFT Marketplace. The promotion period has thus started with a 50% discount on transaction fees when purchasing crypto with a card - details.

 BINANCE: Register from the link below i save -10% on commission.

The most expensive NFT tokens

Zoe Roth, "Disaster girl"

She proved it even Zoe Roth, more known as Disaster Girl. For half a million dollars, she sold a photo taken by her father, Dave Roth, in which, as a 4-year-old, she is grinning against the backdrop of a burning house in the neighborhood. The photo appeared thousands, if not millions of times, on different occasions, it became the background of countless memes, but its heroine did not earn anything from it. Only the NFT allowed her to sell fame for 500. USD.

He sold his first Tweet for $ 2,9 million Jack Dorsey, founder of Twitter. On March 21, 2006 he wrote:

"I just set up my Twitter account."

He also collected $ 5,5 million Edward Snowden, a former US National Security Agency employee who released security surveillance documents. $ 5,5 million was paid for his face from court reports declaring surveillance illegal by the NSA.

The work, however, achieved the highest valuation by far "Everydays: the First 5000 Days" artist "Beeple"which was valued at the equivalent of $ 69,3 million. Mike Winkelmann's painting took several years to develop. It is a digital collage of 5. futuristic images, each of which was created consecutively for 5000 days since 2007.