The Non Fungible Tokens Bubble is Ballooning and HOW?
A meme that was so popular and everyone had access to it turned out to be so valuable. How was that value created?
The original creator remastered the original piece of art and auctioned it as a digital piece of art in 2022 for 300 Ethereum. This piece of art is Non-Fungible, meaning it cannot be exchanged with something of similar value. The sanctity of the art is preserved due to its one-of-a-kind nature.
Is NFT a Crypto?
Since these NFTs exist on a blockchain network, they’re cryptocurrencies just like your Bitcoin.
The blockchain network is a series of numbers and letters encrypted and stored on the distributed ledger across the web.
Blockchain then authenticates the creator of the art via a digital signature to establish who owns it and the originality.
Each node on the network consists of information on the seller’s details, the buyer’s, and the date on which the NFT was sold. The encryption makes this information scarce and leads to an upward projection of the price of the NFT crypto art.
- NFTs can not be replaced, and it exists on blockchain technology. It is an exclusive cryptographic token
- Real world items also can be NFTs like artwork and educational materials, real estate, and many others.
- NFT can help real world tangible product sales, buying, and trading. It can be more effective. Also, it can help to stop the probability of any fraud.
- NFT can function as an intellectual property right, property rights, individual identity, and many more.
The most interesting possibility of NFTs is they can make a big investment area. Consider a specific real state-owned by many people. Real estate buying is not easy. It is normally a complex and long legal process. But for the NFT, it can be shared in the malty party. It can be under a smart contract. one may have a share of the beach house and entertainment plaza while having the space in a shopping mall. These are different properties with different prices, but they can be shared, and many people can also have ownership.
The originality of the art piece
The downside to owning the original art piece is that the owner cannot control the number of replicas created in the market and claimed to be actual. Like a Louis Vuitton bag has plenty of copies floating around in flea markets that look so much like the original, the difference is barely negligible.
Additionally, there also isn’t a way to verify who the creator is. For instance, anyone can hop onto a Non fungible tokens marketplace and claim that they own the token. There are no ways to cross-check the actual creator because their identity may or may not be public information.
Nonetheless, the ownership of NFTs enables you to use them anywhere you like, without it being a case of copyright infringement. It can be utilized for public or commercial use.
What can be sold as an NFT?
Any asset which is unique and can be tagged as a collectible digitally can be converted into an NFT for sale
This is a classic case of a video of LeBron James’ slam dunk at the NBA that went viral, but the original video was truly collectible for fans and was auctioned for over 200 thousand dollars.
We’re already familiar with Nyan Cat, and we have the popular cryptocurrency: a meme coin, aka DOGE coin. The coin has become a very popular form of investment, and so has the Disaster girl meme that has been sold for thousands of dollars.
Collecting actual art pieces is a thing of the past, and collectors fancied digital art more than ever in 2021. Digital art could be anything, such as the 3D render of the “Mars house” created by the artist Krista Kim. This is now regarded as a piece of digital real estate.
Under the title “Crypto Kicks,” Nike received a patent in 2019 that allows blockchain technology to link cryptographically secured digital assets in NFTs to real objects, such as a pair of sneakers.
The University of California, Berkeley is selling an NFT that includes patent disclosures for Jim Allison’s Nobel Prize-winning work.
Several other forms of non-fungible tokens hold a ton of value that can go on sale.
Non-fungible Tokens Stocks
If you aren’t a digital art collector by any means, but you still want to cash in on this bubble. You can look into some NFT stocks to buy. These stocks are related to the upcoming NFTs or could be a platform for a good deal of NFTs in the future.
The top 3 NFT stocks are as follows:
Your one-stop-shop solution to all your e-commerce needs. Being the major leader in providing access to the best online shopping tools, it wouldn’t miss out on an opportunity to be a potential marketplace for NFTs.
Over a decade ago, this company started the business and began selling snowboards online. They have built their eCommerce and doing business successfully. All kinds and all sizes of business use Shopify.
Dolphin Entertainment is a film and television production company that offers corporate and individual brands strategic marketing and PR services through all these businesses. The company’s NFT division is in charge of its NFT-related activity.
ZK International Group
ZK International Group Co., Ltd. is a steel manufacturing company based in China. The firm’s research and development unit, sigma Corporation, declared the smart contract development for the launch of a non-fungible token marketplace.
The NFT markets are booming now, and this NFT market attracted various benefits that can make incredible profits day by day.
Also, this market has risks and challenges for regulatory intervention. The importance of reflecting on the legal and regulatory NFT risks is evident. Using different cases, this NTF market continues to grow and expand and raises the importance of having an international regulatory body for Non-fungible tokens for better regulation and legalization.