What You Need to Know About NFTs

Let’s start with: What the heck are NFTs, and why should you care about them?

Pringles recently unveiled its latest flavor, “CryptoCrisp,” as a one-of-a-kind digital collectible known as an NFT–and the bids to get one went up to more than $2,000. Taco Bell’s NFT taco GIFs sold out in a mere 30 minutes. The New York Times sold a column about NFTs for a whopping $560,000. NFTs were even the subject of a sketch on Saturday Night Live, which SNL subsequently auctioned off as an NFT. The winning bid garnered roughly $360,000. 

It’s clear that NFTs are big business, at least for the moment. NFTs, which stands for non-fungible (or not interchangeable) tokens, are unique digital assets that exist on the blockchain. The original function of NFTs was to verify digital art, because they can function as certificates of authenticity. Now luxury fashion labels, real estate companies, pro sports leagues, and even legacy art auction houses such as Christie’s, Sotheby’s, and Phillips are selling NFTs. Tom Brady recently announced that he is launching an NFT company that will feature collaborations with famous athletes, entertainers, and artists. 

It’s enough to make any business owner wonder whether this is a trend worth exploring. Some finance experts warn investors to tread with caution, noting that the price of NFTs has plunged by more than 70 percent since their high point in February. Skeptics warn that the NFT bubble may soon burst as the market is flooded with more creations and the novelty of crypto collectibles begins to fade. At the same time, enthusiasts such as billionaire Mark Cuban say NFTs could provide important new revenue streams for small businesses and creators–and now is the time to jump in. Here’s what you need to know before you do.

The Risks and Potential Rewards

Most NFTs are a part of the Ethereum blockchain, meaning that they are bought and sold using Ether, a major cryptocurrency. This means you could, in theory, trade an Ethereum-based NFT for another Ethereum-based NFT. The price of NFTs is pegged to the value of Ethereum and bitcoin, both highly volatile assets. And, like any investment, you have to buy low and sell high to make money. 

Pringles recently unveiled its latest flavor, “CryptoCrisp,” as a one-of-a-kind digital collectible known as an NFT–and the bids to get one went up to more than $2,000. Taco Bell’s NFT taco GIFs sold out in a mere 30 minutes. The New York Times sold a column about NFTs for a whopping $560,000. NFTs were even the subject of a sketch on Saturday Night Live, which SNL subsequently auctioned off as an NFT. The winning bid garnered roughly $360,000. 

It’s clear that NFTs are big business, at least for the moment. NFTs, which stands for non-fungible (or not interchangeable) tokens, are unique digital assets that exist on the blockchain. The original function of NFTs was to verify digital art, because they can function as certificates of authenticity. Now luxury fashion labels, real estate companies, pro sports leagues, and even legacy art auction houses such as Christie’s, Sotheby’s, and Phillips are selling NFTs. Tom Brady recently announced that he is launching an NFT company that will feature collaborations with famous athletes, entertainers, and artists. 

It’s enough to make any business owner wonder whether this is a trend worth exploring. Some finance experts warn investors to tread with caution, noting that the price of NFTs has plunged by more than 70 percent since their high point in February. Skeptics warn that the NFT bubble may soon burst as the market is flooded with more creations and the novelty of crypto collectibles begins to fade. At the same time, enthusiasts such as billionaire Mark Cuban say NFTs could provide important new revenue streams for small businesses and creators–and now is the time to jump in. Here’s what you need to know before you do.

The Risks and Potential Rewards

Most NFTs are a part of the Ethereum blockchain, meaning that they are bought and sold using Ether, a major cryptocurrency. This means you could, in theory, trade an Ethereum-based NFT for another Ethereum-based NFT. The price of NFTs is pegged to the value of Ethereum and bitcoin, both highly volatile assets. And, like any investment, you have to buy low and sell high to make money. 

PUBLISHED BY– inc

NFTRADAR

Share and Enjoy !

Shares

Leave a Reply

Your email address will not be published.