NFT Primer for You
When did you first hear and keep hearing about these three letters “NFT”? Someone makes millions of dollars in just a few minutes with a few clicks. Aren’t you curious about what are the differences between JPG and NFT?
NFTs are non-fungible tokens: digital assets that can be obtained in exchange for cryptocurrency. These assets are uniquely identifiable, traceable, and verifiable, making them impossible to hack or duplicate.
Generally, NFT is coming along with the art, such as graphics, and music. However, technically, any digital good that has indestructible proof of ownership and the ability to last forever can be an NFT. For example, nearly every Twitter Web3 influencer has at least one digital clothes which are a kind of NFT. Even Adidas is launching and releasing NFT clothing on Adidas Confirmed for the metaverse.
The keywords of NFT
Drop: A drop, on the other hand, is the initial launch of a new collection or project.
Mint: Minting means registering the NFT as a token in the blockchain. The minting process can be sophisticated for creators unfamiliar with tech but can be done relatively easily on platforms like OpenSea and Raible. Simply, the progress that turns a JPG into an NFT is minting.
Whitelist: In the NFT space, one of the best ways to buy cheap is to buy (AKA “mint”) the NFT as soon as it is released (AKA “dropped”) on the project’s website to avoid price hikes after it reaches secondary marketplaces. A whitelist in the NFT world is a list of people who get early and guaranteed access to the mint at a specific date and window of time. Given the benefits, whitelists are like a golden ticket in the NFT world. To get on that list, you need to find the project early, join the Discord group, and follow the eligibility requirements.
Airdrop: Airdrops are free collectibles or bonus NFTs offered by creators to either generate interest in their project or reward existing users. An airdrop may be a reward to loyal community members such as active community ambassadors or it may be a function to attract new collectors. Either way, the result is the same, you receive NFTs for free by meeting certain criteria. Where can you get the firsthand information? Keep an eye on projects’ Twitter and join their Discord group.
Floor: In the NFT market, the floor is the lowest current market price you can spend to acquire an NFT within a particular project. In other words, the lowest point of entry. It is often used as a short-hand gauge of the value of an NFT project.
Gas: Gas is the tax you’ll pay to mint, buy, or sell your digital assets on a blockchain network. Now, depending upon the supply and demand part, gas prices can be different!
DYOR: Do Your Own Research. NFTs are sensitive and nascent, you shouldn’t give in to Twitter roars and chants of LFG (Lets Fing Go!). Remember, in Web3 space, don’t make any financial decisions before you fully realize what you are doing.
WAGMI: WAGMI is short for We’re All Gonna Make It! which is expressed when there is good news. Based on the asset we have, its price, and the supply-demand picture, we are either gonna make it or not. However, the term isn’t specific to a particular NFT. It can also represent the whole community of NFT.
Where can you trade NFTs?
From the overview of the total volume distribution of all chains, Ethereum has the highest volume which has reached $19.85B.
Digital-artwork NFTs are mostly traded on specialized marketplaces like Opensea, Zora, X2Y2, and MagicEden. Those are the common places for people to trade PFP, which is short for picture for proof and profile. Some of the most famous projects (also very expensive) are Bored Ape Yacht Club, Okay Bears, and Moonbirds could be minted on Opensea. Opensea is on ETH before, but recently they have built Beta on Solana. Solana is a fast-growing market for NFT nowadays. Someday the trade volume of MagicEden (built on Solana) was even higher than Opensea.
If you’re more interested in games and sports collectibles, developers like Dapper Labs have created experiences including NBA Top Shot. People who own the virtual trading card can hold, sell and trade official digital collectible NFTs of the NBA’s greatest plays and players.
And for runners or joggers, Stepn is a great choice to combine the interests. The concept of Stepn is run to earn, people could make crypto through running and jogging (depending on the move speed). The combination of socialfi and gamefi makes this project boom since it launched last year’s August. Now, the verification code which is like the entrance ticket of the app is very hard to get. The floor price of Stepn NFT shoes, which are the initial input for users are as high as 12 SOL. People are asking whether it is too late to join, but there is always someone out there eager to join.
Another creative socialfi project like Lens is trying to make a shift in how people think about social media. The decentralized principle is highly embodied in their product. They allow people who own the idea or insights to match with the creator, to carry their own data and governance, and to curate their collections.
Online games including DeFi Kingdoms, and Gods Unchained are starting to use NFTs to sell in-game assets like characters, weapons. Real estate in new virtual worlds is sold via markets including Decentraland and The Sandbox.
Where is the future of NFT?
For most people, the appeal is in buying and selling and gaining profit from the gap, just like a stock or other asset. Some people buy virtual real estate in which they could build their architecture such as museums. The virtual space they bought would be used to hold commercial activities like art galleries or fashion shows.
Instead of focusing on short-term gain, members from high-quality projects tend to hold their NFT for long. In some communities, the NFT is treated as a symbol, a pass for membership. For example, one newly released project Surge Women has over 1.4k owners (of 1.45k) who are not selling their NFTs. It is a weird phenomenon from some peoples’ point of view since these owners tend not to earn money from it. Surge Women community is a purpose-driven community and all its holders have access to their perks, such as educational courses, scholarships, discounts on Web3 tooling, access to events, etc.
The dramatic price valuation era of NFT will eventually pass. If the projects would not find out ways to keep their holders engaged and interested, it is by no means the price can keep flying.
The real-life meaning of NFT that convinces people to mint it, hold it and believe in it is the only way for NFT projects to sustain long.
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