Forex in this article
• Cryptos and blockchain are becoming increasingly popular – interest in NFT is also increasing
• 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-fungible 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 artworks selling for millions of dollars. Theoretically, however, any asset that can be tokenized can be an NFT – apart from works of art, for example trading cards, videos, photos or pieces of music. And the NFT hype hasn’t even stopped in the real estate market.
In digital art, blockchain technology has an added value. This could be seen, for example, at Christie’s auction house’s first purely digital art auction in March. An artwork by digital artist Mike Winkelmann, known as Beeple, was auctioned off. The work fetched a retail price of $69.3 million, making it the most expensive digital artwork at the time, NZZ reported.
In the spring of 2021, the auction of Jack Dorsey’s first tweet as an NFT also attracted the general public. This went to a software entrepreneur from Malaysia for 1,630 ethers, which was worth about 2.9 million US dollars at the time.
The NFT trend has developed significantly and is now partially reaching the mainstream. For example, pop star Katy Perry announced this summer that she wants to offer a series 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 brochure.
ARK Invest founder Cathie Wood sees great potential
The NFT hype also seems to have caught on with Cathie Wood, founder and CEO of investment firm ARK Invest. At a conference hosted by industry network SALT, Wood shared her excitement for the concept in a panel discussion with CNBC host Andrew Ross Sorkin, explaining that she particularly likes a vendor that allows users to buy pixels for digital artwork and create new ones on top . of them to create layers. “I was smiling from ear to ear because I was like, ‘Man, this is going to be so explosive,'” MarketWatch echoed Wood’s reaction to the NFT platform’s business concept. “That’s exactly how I felt when the Internet first came.” Although the ARK boss does not own NFTs, Benzinga wrote that she expects strong growth in this area, which could also benefit the second largest cryptocurrency by market capitalization, Ether, since most NFTs are located on Ethereum blockchains.
Create NFTs yourself
But of course there is not only the possibility to buy NFTs – as an artist, for example, you can also create and sell NFTs yourself. You don’t 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, because that is a prerequisite for creating your own NFT.
First of all, of course, you need a digital object – such as an image, a video or a song – which is best stored in a common format that the platform on which the object will be offered also accepts it. It is also very important that you are the creator or owner of the rights to the item you want to sell.
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In order to be able to sell your own NFT, you need to create your own crypto-wallet at first. According to the Bitcoin2Go portal, it is recommended to create an Ethereum wallet since 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 creating or selling the NFTs. To find out what amount makes sense, you can find out in advance what fees are charged by the respective marketplace to create or sell 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 “minted” – i.e. converted to an NFT – and released for sale. futurezone.at mentions 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 upon upload or later upon sale (if the NFTs are not offered for sale on the platform by default). One of the details that must be disclosed is whether the NFT will be auctioned off or sold at a fixed price. In addition, royalties may 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 specified – whereby you, as a seller, must choose the currency that you also own.
Since NFTs are not tied to the platform they are created on, but reside on the respective blockchain, they can also be offered across different platforms.
NFTs are not quite mainstream yet
However, while the trend is increasingly towards NFTs, and theoretically anyone can create and sell NFTs themselves, non-fungible tokens have not yet fully arrived in the mainstream. At least that’s what Alex Salnikov, co-founder of the Rarible platform, thinks. He told Markets Insider over the summer that for NFTS to truly go mainstream, commodities must become more affordable and easier to buy. Companies have a responsibility to think about how to 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’s still not suitable for the end user.”
Image Credits: archy13 / Shutterstock.com