Intro to NFT (Non-Fungible-Token)
It is very obvious that the NFT world has been booming given the media attention recently. Like many you may be asking yourself what is an NFT anyways? Well it stands for NON Fungible Token. Basically it's a digital asset that has uniqueness and rarity in terms of value that is stored on a blockchain. We give it rarity and value. Like the Mona Lisa for example in the physical world, its worth millions, or not? The market decides. Also the only one way to validate the painting is done by examining it. This video parallels that concept to the NFT realm so you have a base understanding to work from.
If you own an NFT on the blockchain the validation comes from the blockchain it's used with. Validation meaning how do you prove it's the original. The different blockchains can be compared to different oil paintings, pastels, watercolors they are different mediums similar to the different blockchains that exist. The most common being Bitcoin and Ethereum. Bitcoin is far to expensive to work with so Ethereum has proven a big gateway for the early development of the NFT space. Now there are many blockchains running NFT marketplaces that are far cheaper and faster than Ethereum. Ever evolving. Like Solana for example. I have actually built a marketplace on the blockchain and it has great potential and not too hard to do without programing knowledge. Ok back to NFT's. The truth is there are many projects on the market and nearly all of them will end up loosing you money. The Punks and World of Women are a few examples. The Punks have retained if not gained in value and WOW has decreased in value recently. So now you are thinking of owning an NFT, what to think about? The key is is timing. Ill say it again, timing. If you purchase the NFT's above floor value then you will most likely panic sell and end up kicking yourself in the ass. The floor price is the lowest average estimated value of the project. So usually the floor price or lower is what you are aiming for to enter and buy the NFT. Next you have to identify what project is actually worth a dime? How do you do that is the question. What do all the good projects have in common, I would say either a large group of people who are active on twitter and discord that follow and contribute to hype up the project or the person behind the project like Beeple. Next what does the art look like, is it designed by an artist? If the artist behind the project has a big following then there is a larger possibility that it will succeed. At least from what I have observed.
Mekaverse for example, before the actual mint launch of the NFT's the hype behind this project was huge. The pre mint NFT's that have not been minted (bringing the NFT to life on the blockchain) yet were trading for 7 Ethereum at about $4,000 for one single Eth. Some images are attached. If you had bought at the peak before mint which is the day that the NFT's reveal themselves then you would have lost a great deal of money. They are now selling at 1 Eth which is 1/7th the original pre mint price. This is why you must be careful and also be willing to lose you NFT investment.
Due to the difficulties in choosing good NFT projects I have focused more on blockchain gaming digital assets. These are also NFT's yet also have a real utility within the game. There is also another opportunity involved where you can rent out your assets. This is the sector that I will focus on.
What should you do to get started? I would take a look at some of the links provided below. Get involved and start playing. Maybe connect to the games discord and follow the development. These actions will help you understand how this metaverse works. There are many layers to this and once you understand how it all works together the better you will be able to take advantage of the opportunities when they present themselves. This is a short summery on the NFT world and I hope it points you in some direction you can follow. Ill be posting another article shortly talking about specific projects that I like and why.
Blockchain Games
Splinterlands - Collect, Trade, Battle!
PlanetSandbox
Gala Games
Mines Of Dalarnia
Star Atlas - Marketplace
Illuvium
Welcome to Decentraland
Land Sale - Ember Sword
MekaVerse | 8,888 unique Mekas who need Drivers.
Altered State Machine – Non Fungible Intelligence
BLOKTOPIA – the home of crypto
NFT Marketplaces