Forex in this article
• Cryptocurrencies and blockchain are growing in popularity – and interest in NFTs is growing
• ARK Invest founder Cathy Wood sees great potential
• NFTs are not quite common yet
NFT, short for Non-Fungible Token, is a unique and therefore non-fungible digital asset. With the enthusiasm for cryptocurrency and blockchain, interest in NFTs has also grown in the recent past. Non-fungible tokens gained notoriety primarily through news of multi-million dollar digital artworks. However, in theory, it could be all assets that can be converted to an NFT token – as well as artwork, for example, trading cards, videos, photos or music tracks. And the NFT buzz did not stop even in the real estate market.
In the field of digital art, blockchain technology has added value. This can be seen, for example, at Christie’s first purely digital art auction in March. Artwork by digital artist Mike Winkelman, better known as Beeple, has been auctioned. NZZ reported that the work fetched a retail price of $69.3 million, making it the most expensive digital artwork at the time.
In the spring of 2021, the auction of Jack Dorsey’s first tweet as an NFT caught the attention of the general public. This went to a software entrepreneur from Malaysia for 1,630 ether, which was worth about $2.9 million at the time.
The trend of NFT has developed significantly and is now partially reaching the mainstream. For example, pop star Katy Perry announced in the summer that she wanted 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 rates. According to ArchDaily blog, the luxury property “Mars House” has sold for more than half a million US dollars on digital art platform SuperRare. The property could only be viewed via virtual reality and was therefore delivered to the buyer as a 3D digital volume.
ARK Invest founder Cathy Wood sees great potential
It also appears that the NFT fanfare has caught on with Kathy Wood, founder and CEO of investment firm ARK Invest. During a panel discussion with CNBC host Andrew Ross Sorkin at a conference organized by industry network SALT, Wood expressed enthusiasm for the concept and said she particularly likes a provider that allows users to purchase pixels for digital artwork and create new ones on top of them to create layers. “I was grinning from ear to ear because I was like, ‘Man, this is going to be so explosive,’” MarketWatch Wood reacted to the business concept of the NFT platform. “That’s exactly how I felt when the Internet first came out.” The head of ARK does not own NFTs, but Benzinga wrote that it expects strong growth in this area, which could also benefit the second largest cryptocurrency by market capitalization, Ether, as most of the NFTs are placed on the Ethereum blockchain.
Create your own NFTs
But of course there is not only the possibility of buying an NFT – as an artist, for example, you can also create and sell an NFT yourself. You do not necessarily need to know cryptocurrencies in detail to do this, but you must have some basic knowledge and be willing to invest in cryptocurrency, as this is a prerequisite for creating your own NFT.
First of all, of course, you need a digital object – such as a photo, video, or song – that is better stored in a common format so that it will also be accepted by the platform on which the object will be served. It is also 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 be able to sell your NFT, you have to create your own crypto wallet at first. According to the Bitcoin2Go portal, it is recommended to set up an Ethereum wallet since most of the NFT marketplaces are based on the Ethereum blockchain. The corresponding currency – in this case ETH – must then be purchased so that a certain amount is available in the digital wallet, as a fee may be incurred when creating or selling an NFT. In order to find out the logical amount, you can find out what fees are charged in advance in the respective market for the creation or sale of NFTs. The Futurezone.at portal recommends investing between 50 and 100 euros in the corresponding currency.
The next step is to identify a market in which the digital item will be “minted” – that is, converted to NFT – and offered for sale. Futurezone.at cites OpenSea, Mintbase, and Rarible as examples of well-known and suitable markets for Ethereum. The wallet must then be linked to the hosting platform and uploaded artwork, including the name and description.
In order to be able to sell your NFT, certain information must be provided, either when you upload it or later when you sell it (if NFTs are not offered for sale on the platform by default). One detail that needs to be provided is whether the NFT will be auctioned or sold at a fixed price. Additionally, royalties can be set, which are a percentage of the sales price the seller receives for each NFT sale. In addition, the accepted currency must also be specified – as the seller you have to specify the currency that you also own.
Since NFTs are not tied to the platform on which they are created, but are on the respective blockchain, they can also be offered across different platforms.
NFTs aren’t quite mainstream yet
But even if the trend is increasingly towards NFTs and everyone can theoretically create and sell NFTs themselves, non-fungible tokens have yet to fully make it into the mainstream. At least that’s the opinion of Alex Salnikov, co-founder of the Rarible platform. He told Markets Insider over the summer that for NFTS to truly become mainstream, commodities must become more affordable and easier to buy. It is the responsibility of companies to think about how to make NFTs more attractive to customers.
The hurdles also include the fact that purchasing an NFT requires a crypto wallet in which the cryptocurrency must be held. “It’s not as easy as going to Amazon and buying something,” Salnikov said. “It is still not suitable for the end user.”
finanzen.net editorial office
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