More than 70% of Americans still don’t know what an NFT is. Hence, this blog post is for every reader who wants to dig deeper into the world of the NFT marketplace, whether a US resident or not.
We had already come a long way from blockchain and cryptocurrency, from bitcoin to dogecoin. Then entered NFT – Non-fungible Tokens! As a matter of fact, NFTs can be considered a subset of the crypto economy. The only apparent difference is that cryptos, like other currencies, are fungible, and NFT is not.
The first NFT emerged in 2014, but this market is now gaining more momentum in 2022!
Users in the digital art world have gelled in very well with NFT. Today, people are looking for unique virtual arts in exchange for millions of dollars! ($$$)
Note – Here, art refers to paintings, digital illustrations, videos, and music tracks.
Reflecting the popularity of NFT, multiple marketplaces have been emerging recently. According to Finder, the top five countries that have embraced the NFT trend to its core are all in the Asian continent.
I am not writing this blog to influence you to start investing in any virtual art or purchase a piece of land next to some celebrity in the MetaVerse (it sounds fascinating though). Instead, the sole purpose of writing this article is to unveil 5 HUGE insights into the NFT marketplace chains.
5 Secrets About NFT Marketplace – Read Or Miss Out!
Newspaper articles say -“Whether you decide they’re a speculative fad or a great new possibility for artists, there’s no denying that NFTs are making headlines!”
It is high time now. One must at least be aware of the NFT and MetaVerse basics. Regardless of whether you are planning to invest in the NFT market or discovering how to create an NFT marketplace — you are reading this because the NFT concept interests you. At least you want to dedicate a percentage of your interest to this! Hence, throughout this article, I will reveal five BIG & CRAZY secrets about the NFT marketplace.
Let’s get started!!!
#1 – Supporting Community Has a Direct Impact On the Sale Value
Have you come across this quote by William Ralph Inge before?
“The wise man is he who knows the relative value of things.”
It is very simple to understand the first secret of how NFT marketplaces work.
Factually speaking, someone who does not know much about NFT might not see it on the pedestal as someone who knows about it.
This is pretty much like investing in the stock market. Investors speculate (and also wish) that the market value of their purchased stock keeps going higher. And then they decide to sell it off when the price has reached its peak.
Overall, the right users in a community will definitely value NFT more than those not interested in it.
#2 – Episodic Sales vs. Collections
The main USP of any NFT marketplace owner is more and more resales (episodic sales). But, the current statistics state something else.
Rather than NFTs getting resold, 73% of the purchased items are being withheld by the buyers.
Out of 6.1 million transactions, only 20% of NFTs were resold a second time. This implies that users are holding on to the purchases that they make. It is safe to say that they savor their belongings. Also, it looks as if people fancy the NFT collections just like they collect different wines in their bar. Here, to safeguard their NFT collections, they are using cloud security solutions.
Estimates say that the NFT owners are probably waiting for the hikes in values. Also, some have the mindset to collect as many tokens as possible from the same token collection board.
#3 – Variety of Digital Assets Are Sold in the NFT Marketplace!
Many exchanges take place in the NFT marketplace. These range from collectible items to artwork, from event tickets to music and media files, from gaming illustrations to big sports moments, from funny memes to domain names, and virtual fashion like sweatshirts to real-world assets like lands.
The basis of saying this is that as of 2021, only 10% of the total NFT transactions have been in art.
#4 – It is an Unimaginable Task to Draft a Rough Estimate of NFT Values
Remember how ‘.com’ was a new phenomenon for everyone during the late 90s? Similarly, this NFT is a bubble with a vast scope. Considering the complexity and size, nobody knows what level it will reach in ten years. Leave ten; it is a daunting task to calculate the same even after a year.
Let’s be practical — until NFT becomes common among more shares of the public, gauging the future current value would be impossible.
#5 – Your Skills Matter A Lot!
If you are still reading this blog, the above four secrets must have made you think that one has to be rich enough to buy anything in this esteemed marketplace. Although owning a digital asset can make you very rich, you may also earn a lot of respect in the market.
But, the reality is that you can get much richer by selling a digital asset in exchange for a currency of your own.
NFTs are beautiful! In the sense that NFT is what a person can do or regularly does. This can be drawing, dancing, singing, writing, and anything that can be converted into digital assets.
The originality of your talent or skill plays an important role here. You should not be scared or hesitant to sell your creations because there will be iterations and copies. But, remember, there can never be two originals! For instance, the Monalisa painting is a masterpiece. There can be repetitions, yet the original one is priced and the highest and preferred the most!
If your digital asset can be evaluated in the market, it can be sold, and the skill owner can earn quite a lot out of it!
BONUS Parting Tip!!!
Nobody knows if the future value of NFTs will remain the same as the current value of NFTs.
Am I right, or am I right?
While investing in the NFT projects, keep in mind the same utility. If you think it has a good value in real life, it is a green signal for investment today. As there would be lesser chances of this losing the momentum in the future.
I hope this article helped you come across and gather some extremely astonishing secrets about the NFT marketplace. This is still a newer industry and will emerge even more in the coming years. Until then, keep yourself updated with the NFT trends so that you can pace up with the new additions in the marketplace.