Thinking behind the NFT wave
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1. What is NFT
NFT is a non-homogeneous token (NFT, Non-Fungible Token) generated by the cryptocurrency market. It was born in 2017 in a pixel avatar project called CryptoPunks in Ethereum. It has a history of several years of development, but recently it has entered frequently people's vision. This is driven by some big events.We may always see such news recently: the encrypted art NFT "Ego Object" created by the famous artist Pak was sold at SuperRare for 111ETH; the American rock band Kings of Leon will release its new album "When You See" in the form of NFT tokens. Yourself”; the NBA sold 20 selected moments of the 2020-2021 season on the NFT market NBA Top Shot on Wednesday at a price of 100,000 US dollars each... The NFT wave hit, showing an impressive market potential.
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A large part of the reason why NFT has a high value is its originality, uniqueness and scarcity. The uniqueness can be verified through the creation date and ownership history of the work recorded on the blockchain. "NFT is a digital asset, and each one has different attributes. Your bitcoin is not fundamentally different from other people's, but each NFT is unique and irreplaceable, which coincides with the attributes of works of art ", which can be understood as a collection certificate of digital art.
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As billionaire investors such as Mark Cuban and Chamath Palihapitiya invest in NFT, NFT is also increasingly favored by digital currency investors, sports/music/art lovers, and collectors. There are currently the following investment methods:
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Method 1: Buy NFT tokens on the exchange
The following introduces several common NFT concept coins for digital currency investors:
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ENJ/Enjin coin
MANA/Decentraland
Enjin Coin was launched in 2009 by Enjin, the largest online game community creation platform. The launch of "Enjin Coin" allows players, content creators and game publishers to add virtual goods and provide value to games and communities.
SAND/The Sandbox
Decentraland is a virtual world platform based on blockchain, which aims to solve the problem of platform operators earning intermediate platform profits for decentralized open source projects, so as to achieve a low-price payment model between content creators and game players; the project uses Blockchain technology is used to obtain and transfer virtual property rights, and allow users to permanently hold these virtual property rights, and even operate them to create profits for their own content; there is no intermediary fee, which is the biggest feature of Decentraland.
RARI/Rarible
Rarible, an NFT-based digital collection and trading platform, launched the governance token RARI. Users can mint, buy and sell digital collectibles through Rarible without any coding skills.
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At present, common trading platforms include OpenSea, Ethart, MakersPlace, Rarible, etc. Users can freely browse NFT encrypted works published by different creators on the platform page and choose to buy them. However, it should be noted that the value of NFT works depends on the market. There are very subjective factors, and works with more consensus may have greater appreciation potential. Therefore, when purchasing, you need to consider various factors such as your own interests, the creator's identity and background.
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4. Thinking behind the NFT craze
For the art market, digital art NFT is becoming a new type of art auction, which may bring subversion to the inherent art market; for digital currency investors and art collectors, it may bring gains or losses Investment projects require prudent judgment and investment.
