How to invest in non-fungible tokens (NFT)
Last month Claire Elise Boucher, known in the music world as Grimes, won $ 5.8 million in 20 minutes with the sale of non-fungible tokens, or NFTs.
In fact, the major NFT platforms made nearly $ 500 million in sales over the past month, according to CryptoSlam.
Recently, Tesla founder Elon Musk gifted us all with a song:
“NFT for your vanity. Computers never sleep. It is verified. It’s guaranteed, “he said. tweeted (isn’t it always)?
“I’m selling this song on NFT as NFT,” the tweet said.
Musk’s tweet, including his caption, music video, and song, was offered for sale as NFT on “Valuables”, a platform owned by the social media network Cent. The auction reached $ 1.12 million. (Valuable objects requires users to connect to the platform via their Twitter account to verify that the tweets offered for sale come from their creators.)
Musk then changed his mind (isn’t he always?) And decided not to sell the NFT.
But you don’t have to be Elon Musk or Grimes to make big bucks very quickly in the current NFT craze – non-fungible means they’re certified authentic by the blockchain and can’t be tampered with. You can always invest at a low price and wait for your NFT to appreciate.
For example, Cryptokitties, which were first launched in 2017, are now popular NFTs according to the Ethereum standard. Some can still be acquired for a very low price, and they have a good track record. A CryptoKitty named Dragon was sold for 600 ETH or $ 172,000 in 2018. (CryptoKitties will soon migrate to an alternative network called Flow.)
But investing in NFTs is not always easy. Besides choosing a winning investment, buyers have to pay a significant fee on top of the cost of the item, which can be intimidating.
“Choosing an NFT,” says one trader, “is not about paying a high price or a low price. The important thing is to choose one that will be worth more. This is not always easy to do in such a young market which follows many different trends.
The price of “gas”
A large percentage of NFTs are traded and sold on Ethereum blockchains, and there are official standards. “Most NFTs are built using a consistent standard known as ERC-721. However, there are other standards that you may want to consider. the ERC-1155 The standard allows semi-fungible tokens, which is particularly useful in the field of games. And more recently, EIP-2309 was proposed to make typing NFTs much more efficient. This standard allows you to manufacture as many as you want in one transaction! “ the official website tell us.
The official currency for doing business on Ethereum is Ether. Transactions using ether also incur a charge for “gas,” which is the amount of computing power (electricity) needed to process the transaction. Gas prices are shown in small fractions of ether called gwei.
Many users find the gasoline costs quite high. They go up when the price of ether goes up, investors make money and will want more. Usage is increasing, pushing up the price of “gas”.
Thus, a $ 30 NFT purchase may add up to a “gasoline” charge of $ 50 or more, depending on the state of network congestion.
The Ethereum blockchain has the most cash for NFT sales, but there are alternatives. The NFT can be made to alternative standards and then sold on WAX or Flow.
WAX, which stands for Worldwide Asset Exchange, is actually faster and cheaper than Ethereum, according to traders. It is also environmentally friendly because it uses a lot less energy to operate – it relies on the Proof-of-Stake system which requires a lot less computation than the Proof-of-Work system used by Bitcoin and Ethereum.
WAX is called the “King of NFTs” and has a custom tool to allow users to create NFTs quickly and easily.
The WAX Creator program rewards people who use a very simple WAX Creator tool that allows anyone to create non-fungible tokens (NFTs) like stickers, collectible carts, and artwork. This WAX Creator program has already created over 150,000 NFTs, according to the official website.
WAX does not provide statistics on NFT’s overall sales, but a recent example gives an idea of the high demand on the platform.
“Last month, trading card giant Topps announced the launch of its NFT Major League Baseball Series 1 collection on the WAX blockchain – featuring base cards, throwback designs, and motion-driven backdrops. Standard and premium packs containing pre-made cards were available, giving players the chance to experience rare and legendary cards ”, CoinTelegraph Reports.
WAX reported attracting a record number of buyers, with over 70,000 NFT packs sold in less than an hour. This is Topps’ biggest sale on the blockchain to date. A legendary exclusive collector’s item ended up being sold for $ 87,672 in the secondary market, just three days after the primary sale, according to the report.
As we mentioned, Cryptokitties will definitely migrate to Sink, an alternative NFT platform created by DapperLabs. Flow debuted in 2017