Non-Fungible Tokens (NFTs) are such a fun topic to talk about because almost everyone loves acquiring music, art, games, and surfing the internet.
In the first half of 2021, we observed a ton of celebrities and memes approving NFTs. What’s the fuss about NFTs? To find out, read till the end as Investor, Marketing Pro, and NFT Professional, Jurgen Cautreels shares fascinating insights on the NFT Markets.
Jurgen, what’s the working model behind the NFTs?
The NFT has a data structure (token) that connects the metadata files attached to an image or file. Usually, the token is loaded and modified to suit the conditions of blockchain networks such as Ethereum.
When the art file is imported to a blockchain network, a metadata file of the token data structure is created. Right after, the NFT takes up a cryptographic hash, a tamper-proof record with the date, and a timestamp for the blockchain network.
As soon as the data is uploaded, it cannot be retrieved or deleted by anyone. And the possibility of an erased work is zero if your NFT is registered on a blockchain. That’s what makes it incredible.
Why is there so much buzz around NFTs?
Did you know, the CEO of Twitter, Jack Dorsey, sold his first tweet as an NFT for more than $ 2.9 million last March. Additionally, many companies in the traditional market are jumping on the NFT market. For example, in Brazil, the first Havaianas NFT collection was auctioned last month.
Consequently, trading volume of NFTs has risen. And since December 2020, the volume has multiplied further. Now NFTs are encountered in the routine and daily life of people. It can be one of your favorite songs or a cartoon of your favorite superhero.
How is the NFTs Market faring?
NFTs skyrocketed in 2021 into becoming the new trend for digital collections and investments. This is because people who believe NFTs can shape the new digital world and those who only see it as a fast avenue to earn money are keying in.
As the call for NFTs increased, OpenSea, the largest exchange location for NFTs, raised $123 million between the series A and B financing rounds in 2021 alone. All these have translated to the marketplace getting a most recent valuation of about $1.5 billion.
Mind-blowing, Jurgen Cautreels! There is prevailing news that although there’s a spike in gas prices, investors don’t seem to be discouraged.. What’s your thought on that?
The projects that release NFTs into the market have low fee placeholders for users to mint a specific number of the resalable pieces. So, as the prices of the NFTs spike up, more people decide to secure their own NFTs with the hope of selling them at a much higher price. This decision spurs their willingness to settle for higher gas fees.
Which NFT collection has achieved the ‘blue-chip’ status?
While there is a lot of debate about the most valuable NFTs, each of these four is a leader in their rights: Meebits, Bored Apes Yacht Club (BAYC), CryptoPunks, and Art Block’s squiggles.
Meebits was launched as a 3D avatar for the metaverse.
— Jurgen Cautreels (@JurgenCautreels) November 9, 2021
Art Blocks is taking the lead in the generative art narrative.
CryptoPunks was arguably NFTs’ first collection, and
BAYC is currently an expanded community with innovative options.
Nonetheless, it’s safe to say Art Block’s squiggles rank higher with over a 48,000% raise in ETH terms.
Enjoyed the session with Jurgen Cautreels? Drop your thoughts or observations in the comment section.