NFT Investment Guide
Why NFTs Are a Safe Investment
They’re stunning. They’re expertly designed. They’re coveted among the rich and famous. They are the iconic NFT. Ever since auction houses like Christies and Sotheby’s took a giant leap into investing in the future of NFTs, the art world, finance world and Metaverse geeks all rejoiced. This new technology has blended together our culture in a completely new way. People either love it or hate it, but one thing is for certain, the NFT is here to stay.
In this guide we will explain how NFTs have become a safe, worthy, and savvy investment for anyone who can get their hands on one and why investing in Icon Gold or Bronze is likely to provide better returns than other, more traditional, investments.
Investment opportunities
It’s the combination of being extremely rare and also the first investment worthy brand in NFT, Icon Cards are expected to maintain their value as collectable items. Due to their high quality and designing process that includes rarity, along with collections that are difficult to source, only a handful of NFTs are actually made by brands like Icon each year. This limits the ability to purchase new NFTs directly from Icon, hence the infamous long waiting list.
This has created a valuable and profitable resale market for Icon Cards Bronze and Gold. An NFT associated with a lower membership level can fetch up to or more than 80% of what the previous owner invested, an NFT in mid range membership levels up to or more than 100% of what the previous owner invested, and a high level exclusive membership up to or more than 120% of the previous owner invested.
There are obviously other considerations beyond the membership level of the Icon Card which affect the resale value. Attributes such as rarity of lower than 6% is more valuable in all NFTs on the resale market. Icon invests time into creating rarity, Black, for example, is one of the most expensive memberships and uses a rarity of 3%. There will only be ten Black memberships ever produced, making it the most rare of Icon Cards.
When making an investment in an Icon card consider the length of the investment also. If you are planning to hold on to the NFT over a long period of time, seek custom colours as these are produced on a one off basis for the client and will maintain its value. However, new or seasonal colors which are the must have in the immediate market can fetch a healthy profit for short term investments.
How to buy an NFT
Purchasing a Custom Icon Card or Icon Bronze isn’t as simple as searching Opensea, going to the Icon Card Collection and picking up a NFT, paying, and then walking away. Only a handful of very lucky investors receive their Membership directly from Icon each year. Others sit on waiting lists, expecting an email for years. Some are even told the waiting list is closed, slamming the door on any chance of buying a card directly from Icon.
The simple fact is that Icon doesn’t sell these custom cards to just anyone. Celebrities and the super-rich receive priority. Next in line is people who have built up brand loyalty by investing in other collection purchases from Icon over time. But, even these people have no guarantee of Icon crafting a coveted NFT card just for them.
For 99% of investors, the secondary market is the only way to get your hands on one of these cards. However, it is essential to be extra careful when using the secondary market. The popularity and price tag of these cards has led to a thriving counterfeit market which we will look at briefly below. The best way to ensure authenticity is to use a reputable marketplace company, such as Opensea.
Be aware of fake NFTs
We briefly mentioned this above, but it is worth reiterating — be cautious of fake NFTs. They are associated with cartoon NFTs that are in for the quick cash grab like Bored Ape Yacht Club, World of Women, and Invisible Friends. The sales techniques of these brands are aimed at teenagers who are easily influenced thinking a trending cartoon image they like will be worth money in the years to come. Seasoned investors will always be looking for an investment for five to thirty years. The Opensea platform has already banned ape NFT collections such as PAYC and PHAYC. A brief glance at the NFTs listed will show you that they often cost as much as the NFT they are copying, if not more. If you find a NFT with a price that seems too good to be true, it more than likely is.
Another way to stay a step ahead is to do your homework on the NFT themselves. There are many features and small details on NFT which help identify them as genuine or fake. Brands are adding unlockable content to prove authenticity. Icon have developed a card that can be added to Apple Walet or Google Pay. Each smart wallet card has a unique QR code for authenticity.
NFT pricing factors
The first thing to understand is what makes these NFTs so expensive in the first place. Back in the beginning of NFT platforms, creators were using the number of copies as a way to set their pricing. It was a quickly duplicated sales strategy employed by skilled marketers who listed their own NFTs. The gimmick of “flipping” collections of 10,000 images is now becoming less of a trend as consumers are becoming smarter with their investments. Other schemes that have always existed in the market is the use of celebrities. The celebrity endorses the brand until the price goes sharply up. This strategy is famous in penny stocks and is referred to as a “Pump and Dump”. Be wary of celebrity and influencer endorsement in the markets and always do your due diligence on your invesment.
Brands that are clearly establishing themselves for the next ten to thirty years of sales are ones to look to for long term growth. These brands are offering stable designs that have real world value. A simple check is, does the brand have a distinctive look? We all know real world brands like Mercedes and Louis Vuitton when we see them. NFT is no different. Brands like Icon Card are one of the first to include an authenticity code similar to the one used by luxury brands. This will no doubt become the standard amongst the developing NFT community moving forward.
NFT value is also dependent on the quality in every single NFT created in a collection. In Icon’s collection, each card is created by one professional designer, who is responsible for the NFT creation from start to finish. This can take anywhere from 15 to 24-plus hours to complete.
Each card is an investment for life, meaning it can be passed down from father to son, gaining value with every passing year. They are designed to stand the test of time with each design created for longevity.
