Let’s admit it. Every Elon Musk tweet has enlightened us to invest our time and energy in cryptocurrency. But this time, the world is going gaga about NFTs. What does NFT mean, and why is it traded in such huge numbers?
A JPEG was sold for millions of dollars, Jack Dorsey auctioning his first tweet, a meme being NFTed to millions, and Elon Musk making a song about NFTs for Dogecoin and not selling it for reasons best known to himself.
Are you as amazed as I am? After reading and following the topic closely for a whole week, I have clarity over the non-fungible token now (yes, thats’ what NFT means); rest assured, it is not as complicated as you think.
Let’s start with the basics first.
In other news: Remember ‘Bad Luck Brian Meme‘? It was sold as NFT Crypto for $36,000.
What does NFT crypto mean, and what does it stand for?
NFT, known as a non-fungible token, has a simple meaning that needs to be understood with the literal translation.
“Non-fungible” means something that cannot be replaced. Thus, NFTs are a license to keep things OG forever. In simpler words, NFT’s is the latest form of crypto art to go mainstream that transforms digital works of art into blockchain trade-worthy assets.
The pay-off has been surprisingly good for the artists so far, and if utilized in the right way, can turn into a gamble worth taking the shot for.
What commodities are included in NFTs?
NFTs can be pretty much anything. It can be digital art, a meme across the internet (that you have created), a song, a tweet, or your brain copied into AI and stored in a file.
NFTs are a security lock to protect your digital creation, and you can choose to auction it later.
Many high-profile NFT sales and projects have highlighted the concept of NFT and are creating awareness in the media. Does this mean NFT is a recent innovation?
NFTs crypto: A brief history
NFTs aren’t new. They have been in the market for quite some time now. CryptoKitties, a digital trading game for Ethereum, was one of the first entries under NFT.
It let people trade in virtual cats that were stored on the blockchain. And every cat was unique in itself. But the first mention of NFT was in 2012 from Colored Coins.
Colored coins are multipurpose and can represent multiple forms of assets, including property, subscriptions, or accessories. Have you ever heard of Rare Pepes?
Rare Pepes lets you create memes that will live forever on IPFS and Ethereum! Isn’t that something we have always wanted? This is a goldmine for members and people surviving on it.
But if NFTs have existed in the world forever, what’s the fuss about now? Why the heck is the world going gaga about it lately?
In other news: This week, Taco Bell has come up with taco-themed NFTs. You cannot eat them; it’s digital art. People are still buying them!
How does NFT affect me?
Have you seen the Gucci Ghost? The baby was sold for $3600, and the current owner is auctioning it for $16,300.
You must be wondering, why should you put that kind of money in digital art when one cannot tell the difference between real art and a copy of the same across the internet?
Or should I stop painting and give my heart and soul to digital art? For all I know, it is paying way more, and the fame is an add-on.
Don’t stress up. This is what you can do to make the most out of the crypto art trend.
Exploring NFT as a creator
Congratulations! Appreciating art is different, and being an artist is different. To understand the business part, you might be interested in NFT to sell your work and get decent pay in return. It sounds like a fair trade, right?
We have NFT in the market to support artists and cater to the same purpose. Whether you create your digital art using Mac computers or iPad, what matters is the value and innovation you bring to it. Every life is unique; maybe that’s why we opt for life and health insurance as a protective layer. NFT is insuring your art for life.
Not just that! With NFT done right, you can get a percentage of money every time your NFT changes owners. More power to you, fellow artists!
Exploring NFT as a buyer
NFT buyers, you are a piece of art because you appreciate art and support artists worldwide. You make them happy with every meme that they have created. You are paying them for every time they have gotten viral, which is a cumulative effort of all the hustles over the years.
Well, you also get to brag about the art being backed up with a blockchain entry. If you collect the art, wait for the prices to go high and sell it for a profit someday.
Four months ago, Pablo Rodriguez Fraile spent $67,000 on a nude digital artwork of Joe Biden and Donald Trump, which he sold recently for $6.6 million.
Pablo identifies himself as a digital art investor.
Obviously, I thought it would take a bit longer. Having said that, funnily enough, I think it was a fantastic deal for the buyer.
The artwork is titled ‘Crossword’ and is celebrated for its changes according to the winner post-elections.
Wait, this isn’t very clear. This art in question here is a crossover of nudity and politics and is worth millions. Does this mean I should be making controversial content? How does it work, and what’s it worth?
How does NFT work?
Blockchains can implement their versions of NFT. Today, most NFTs are backed up by the Ethereum blockchain, making them work differently from an Ethereum coin, which you can buy from popular exchanges.
Collecting art with cryptocurrencies, Charles Darwin, isn’t that an evolution now? But that doesn’t answer my question, what’s the worth?
What is the worth of NFT?
Are you one of the Crazy Rich Asians? Then you can make any piece of content on the internet worthwhile. Here are a few examples:
- Someone bought a digital Cryptokitties cat for $172,000. Don’t call yourself a cat-lover if you cannot do this.
- Remember Pokémon cards? Logan Paul sold soft NFT video clips for up to $20,000. He also sold a Logan Paul Pokémon card; all of this is available on YouTube for free and watched anytime.
But I have a painting that I need to sell. Do physical objects have an NFT advantage?
Nike, the famous Sportswear brand, patented CryptoKick in December 2019, a system that issues NFTs for footwear. According to Nike, it would help verify sneakers’ authenticity using NFT.
That sounds fancy. Does this mean I can sell physical objects as NFT?
No, Nike is the only brand that has found a ‘crossover’; I’d suggest don’t complicate the NFT system more and stick to digital art.
Okay, so can I sell my tweet with NFT?
Darling, don’t get too ambitious unless you are the founder of Twitter and want to auction your first tweet ever!
But if you want a crazy purchase, you can try buying this blog. Jokes apart;
In other news: Three collaborative sneakers were recently sold at $3.1 million, putting an unbeatable price tag at digital fashion.
What is the NFT marketplace?
NFT marketplaces are experiencing their prominence in 2021. An NFT marketplace is like Wall Street, where you can buy and sell crypto art. There are many marketplaces available across the internet that can help you list and sell artwork across the crypto world.
How do I sell NFT?
You can apply to either of the marketplaces to create a project and sell it as NFT on their marketplace. Yes, it’s that simple!
But what if someone copies my artwork and claims it to be theirs?
Can NFT be copied?
Sadly, yes. Millions of people have copied Beeple’s art and shared it countless times.
Being an owner gives you a token like a digital certificate that proves you own the original art. In some cases, the artist retains the copyright ownership of their work to produce and sell copies.
To be honest, this still sounds a fair trade, but what if someone steals my art from the NFT marketplace?
Stolen art from NFT
The future of art commerce isn’t that secure, after all. Recent reports of hacking on Nifty Gateway have raised tough questions about potential security flaws in the crypto art world.
Media Strategist Michael Miraflor tweeted about his account being compromised, and the account cleared in a matter of minutes.
The stolen works included an open edition piece by significant league basketball player Micah Johnson.
Many people reciprocated with similar problems after Micheal addressed this issue in public.
Quoting a Nifty spokesperson,
The Nifty Gateway team is communicating with a small number of users who appear to have been impacted by an account takeover. Our analysis is ongoing, but our initial assessment indicates that the impact was limited; none of the impacted accounts had 2FA enabled. Access was obtained via valid account credentials.
Nifty Gateway, however, claims that most of the thefts involved artworks that were sold outside the platform, on Discord channels, or Twitter.
The hacking has exposed that loopholes in the digital art trading world and ensured the fixes it would need before having a solid platform in the coming years.
People are still optimistic about the potential that NFT holds and are hoping for better security in the coming future.
Controversies surrounding NFT
The thefts, myths, and exorbitant amounts of money involved have been discussed a lot across social media handles. If you are actively following the topic on Twitter, you must have come across a climate controversy surrounding NFTs.
What! Climate controversy surrounding NFTs?
NFTs are partially responsible for carbon emissions generated by cryptocurrencies that are used to deal in digital art.
Artists who benefit from the money think that carbon emission can easily be solved and the trades shouldn’t be stopped.
When asked Beeple about the issue, he claims to be a believer in a more sustainable future for NFT. He plans on investing in renewable energy, conservation projects, or support technology that sucks CO2 from the atmosphere. He is promoting other NFT artists to do the same, discussing how he spent $5000 to offset the emissions from one of his collections.
The Verge has done justice, simplifying the issue to its readers. According to them, cryptocurrencies aren’t mined on renewables at the moment; if that changes, it can have a significant impact on carbon emissions.
Is this the reason Elon Musk chose not to sell the infamous NFT song?
What do Elon Musk and Jack Dorsey have to do with NFTs?
A tweet. That’s all! This is their contribution to NFT. Jack Dorsey is auctioning his first tweet ever as a philanthropic gesture.
Elon Musk made a song about NFT and dogecoins, chooses to sell it first, and then changed his mind. I know this was not necessary, probably unpredictable, but one always fails to understand his mind.
Maybe the CO2 emissions changed his mind, and he decided to go against it. Or, for all I know, he must have been bored of the entire situation.
These super influential people are possibly proclaiming NFTs to raise awareness.
The question here remains, should you consider NFT as an investment option?
NFT marketplace launched for Indian audience
Binance owned cryptocurrency exchange WazirX launched a marketplace for NFT earlier this week. This will let the Indian creators auction their digital creations and earn royalty.
The marketplace allows exchange of digital assets and intellectual properties such as art pieces, audio files, videos, or tweets.
“From the creative industry perspective, we believe this is a great opportunity for artists and IPR owners to monetize their existing assets via a new revenue stream. The myth of the starving artist needs to be rewritten. Every creator, artist, the influencer has the right to showcase their IP with dignity and on a credible platform with legitimate buyers,”Vishakha Singh, Adviser, NFT Marketplace.
Is NFT a good investment ?
Of all the investment options in 2021, NFT sure sounds promising. But, like stocks, one has to be careful while investing their money in it. Also, remember, anything and everything on the internet is not art.
If you are an artist, you should research the art before making an NFT and looking for potential buyers. If you are a collector, do not try saving money by buying it off Discord, Telegram, or Reddit. The gold rush is crazy; the hackers are crazier. Your losses may come up stronger than your gains.
I am concerned about the environmental impacts of minting these NFTs. The artist in me is excited for all those memes to pay off now finally.
What are your thoughts on NFT? Are you planning on experimenting with the industry? Let me know in the comments below.
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