Forex in this article
• Cryptos and blockchain are becoming increasingly popular – interest in NFT is also growing
• ARK Invest founder Cathie Wood sees great potential
• NFTs are not quite mainstream yet
An NFT, short for Non-Fungible Token, is a unique and therefore non-replaceable digital asset. With the enthusiasm for cryptocurrencies and blockchain, interest in NFTs has also grown in recent times. The non-fungible tokens became known primarily through news of digital works of art sold for millions of dollars. Theoretically, however, all assets that can be tokenized can be an NFT – in addition to works of art, such as trading cards, videos, photos or pieces of music. And the NFT hype has not even stopped in the real estate market.
In digital art, blockchain technology has added value. It could be seen, for example, at Christie’s auction house’s first purely digital art auction in March. A work of art by digital artist Mike Winkelmann, known as Beeple, was auctioned off. The work received a retail price of $ 69.3 million, making it the most expensive digital work of art at the time, NZZ reported.
In the spring of 2021, the auction of Jack Dorsey’s first tweet as an NFT also attracted public attention. This went to a software entrepreneur from Malaysia for 1,630 ethers, which was worth about $ 2.9 million at the time.
The NFT trend has developed significantly and is now partly reaching mainstream. For example, pop star Katy Perry announced this summer that she wants to offer a range of exclusive content in collaboration with blockchain operator Theta Network via NFTs in the last quarter of 2021.
And in the real estate market, real estate NFTs are now available at record prices. According to the ArchDaily blog, the luxury property “Mars House” was sold for more than half a million US dollars on the digital art platform SuperRare. The property can only be viewed via virtual reality and was therefore delivered to the buyer as a digital 3D folder.
ARK Invest founder Cathie Wood sees great potential
The NFT hype also seems to have caught on with Cathie Wood, founder and CEO of the investment company ARK Invest. During a panel discussion with CNBC host Andrew Ross Sorkin at a conference hosted by industry network SALT, Wood expressed her enthusiasm for the concept, saying she particularly likes a provider that allows users to buy pixels for digital artwork and create new ones. oveni. of them to create layers. “I smiled from ear to ear because I thought, ‘Man, this is going to be so explosive,'” MarketWatch Woods’ response to the NFT platform’s business concept echoed. “That was exactly how I felt when the Internet first came along.” Although the ARK chief does not own NFTs, Benzinga wrote that she expects strong growth in this area, which could also benefit the second largest cryptocurrency by market value, Ether, as most NFTs are located on Ethereum blockchains.
Create NFTs yourself
But of course it is not only possible to buy NFTs – as an artist you can, for example, also create and sell NFTs yourself. You do not necessarily need to know crypto in detail to do this, but you should have some basic knowledge and be willing to invest in a cryptocurrency, for that is a prerequisite for creating your own NFT.
First and foremost, of course, you need to have a digital object – such as a picture, video or song – that is best stored in a common format that the platform on which the object is to offer also accepts it. It is also very important that you are the author or owner of the rights to the item you want to sell.
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In order to sell your own NFT, you need to create your own crypto wallet initially. According to the Bitcoin2Go portal, it is recommended to create an Ethereum wallet, as most NFT marketplaces are based on the Ethereum blockchain. The corresponding currency – in this case ETH – should then be purchased so that a certain amount is available in the digital wallet, as fees may be incurred when setting up or selling the NFTs. To find out what amount makes sense, you can find out in advance what fees are charged in the respective marketplace for creating or selling NFTs. The Futurezone.at portal recommends investing between 50 and 100 euros in the corresponding currency.
The next step is to choose a marketplace where the digital object is then “remembered” – ie converted to an NFT – and released for sale. futurezone.at cites OpenSea, Mintbase and Rarible as examples of well-known marketplaces suitable for Ethereum. The wallet must then be linked to the hosting platform and the artwork uploaded, including name and description.
In order to sell your own NFT, certain information must be provided, either by upload or later on sale (if the NFTs are not offered for sale on the platform by default). One of the details to be disclosed is whether NFT should be auctioned off or sold at a fixed price. In addition, royalties can be set, a percentage of the sales price that the seller receives for each sale of NFT. In addition, the accepted currency must also be stated – whereby you as the seller must choose the currency that you also own.
Since NFTs are not tied to the platform on which they are created, but are located on the respective blockchain, they can also be offered across different platforms.
NFTs are not quite mainstream yet
But even though the trend is increasingly towards NFTs, and theoretically anyone can create and sell NFTs themselves, non-fungible tokens have not yet fully reached the mainstream. At least that’s what Alex Salnikov, co-founder of the Rarible platform, thinks. He told Markets Insider over the summer that in order for the NFTS to truly become mainstream, commodities need to become more affordable and easier to buy. Companies have a responsibility to think about how they can make NFTs more attractive to customers.
The obstacles also include that the NFT purchase requires a crypto wallet in which cryptocurrencies must be stored. “It’s not as smooth as just going to Amazon and buying something,” Salnikov said. “It is still not suitable for the end user.”
Image Sources: archy13 / Shutterstock.com