NFTs (non-fungible tokens) are not such a new concept as you would think - true blockchain enthusiasts will know that the first NFTs ever created were not in 2017 with the CryptoKitties on the Ethereum blockchain but 2012 on the Bitcoin blockchain. Although Bitcoin being NFTs is the opposite of its point as a currency. An NFT is a non-fungible item that cannot be replaced or substituted, a bit like a plane ticket, it has a unique number and has one and only owner although its ownership can be transferred. Bitcoin managed to create NFTs for the first time back then with the coloured coins by incorporating the colour code within its blockchain - it was the first test case for these NFTs also known as collectables.
Latest hype: EmiSwap and Crypto.com
One such endeavour into the NFT space recently has been made by EmiSwap, an automated market maker exchange with its ESW voting token as well as yield-increasing NFT Magic Cards mechanics. EmiSwap is the first project in the EmiDAO ecosystem which aims to create an ecosystem of community-governed projects operating and meeting the emerging users' needs. Thus, to succeed they have created the EmiDAO Alliance and have been partnering with many important figures and developers of the crypto-verse such as Alpha Sigma Capital, DigiFinex, BitMart, Emirex and a few days ago MahaDAO, IDCM and HollaEx.
NB: bitHolla has just released their second version of their HollaEx Kit making them very active at the moment and worth looking into. They’re a white label exchange software company allowing their clients to create their own market. They are also working on including NFTs within their crypto kit solution so that anyone can create an NFT market.
Creating your very own NFTs seems to be the new thing to do but it can be quite scary in terms of development. Luckily there are a small number of companies which have developed platforms where anyone can create NFTs but can also sell and buy them. The newest of these being the daunting Crypto.com platform which has launched this month and enables its users to create, display, buy and sell non-fungible tokens.
There are many different types of NFTs and not all of them have the same function/ goal. Here is a list of the different catégories of NFTs.
The different categories of NFT
- Collectables such as CryptoKitties
- Metaverses: used for video games or a website they are usually like a part/ field within the game for the buyer to build what they would like on it - big companies buy space to market their product
Example: Sandbox: NFTs of LAND are sold and the holder can build what it would like. Its map has become a real marketing feature and Sandbox has enjoyed a fairly big success with more than 70 million shared creations on the 2D and pixel art universe creation application and has been downloaded over 40 million times!
Digital real-estate as illustrated by the bought space taken up, notice ATARI one of the first video game companies making big moves into the NFT land digital realm. Sandbox LANDs
- Trading card games: the most famous ones are God Unchained. Although there is no synergy between all the game card yet that leaves room for a potential partnership allowing cards to be used in different game and not one exclusively
- Utility NFTs: Two examples would be Ternoa and Nike. Ternoa’s project is a personalised capsule that will contain your personal data. Apparently designed originally for testimonies to be stored, a function would release it to a specific address if the blockchain gets the information that the owner has passed away. Nike has also an NFT project for each of their shoes, that will ensure the traceability but also counterfeit fake shoes.
- Artistic: all the NFTs related to art whether the NFT represents a part of the art or the whole piece of art.
NFTs being sold is could be the first glimpse towards digital ownership Source
Why are NFTs so interesting? How come I can own the internet?
I can own it! Well yes and no, it all depends if its very first code is being put on sale digitally on an ERC contract. After all the first tweet ever posted on Twitter by its CEO Jack Dorsey has been sold as an NFT for $2,5million! At the moment it is quite new and sur evaluation might happen although who is to really define the value of an item like Bitcoin it all depends on the belief the buyer puts in that particular item.
Isn’t it a bit silly when we see the price these NFTs sold for?
The NFT's latest craze is the work of art made by a humanoid sold for $700,000 at auction. Amongst the impressive slightly crazy sales of NFTs another would be the Beeple NFT for $69 million and an article sold by a New York Times columnist for $560,000. Let’s also quote the Banksy painting that was burnt straight after his sale in an NFT - the stunt was made with the aim of “bringing the world of physical art with NFTs.”
But is the NFT really worth millions of dollars or is this just the result of an euphoria or even the fear of missing out?
Well again yes and no: it is worth it but not really. The main fact on value is that It is a personal opinion and whether or not the buyer wants to own the NFT: why would you buy a magical card or a painting for x amount of money. Everyone has hobbies and passions making them buy these kinds of items. I would personally pay a lot of money to own Satoshi’s notepad or a legendary pokemon card.
Why not just copy the NFT?
It is a question of art but also digital ownership that cannot be denied or stolen because of its origin from the blockchain technology: adding the cryptography makes its value even stronger. Another important aspect to the NFT revolution is the digital scarcity: it is not replicable meaning not everyone can buy them making them special and unique in a way. The burnt Banksy painting will only be available as an NFT from now on making it very precious.
World first attempt to force value into the NFT version of the artwork. Source
Should we invest in NFTs?
NFTs are supposed to gain in interest a bit like autographs or paintings but there is always a risk whether it is a sur evaluation on the initial price or a devaluation of it with time. A little note to add on NFTs related to art would be that regardless of sky high prices and the perhaps superficial nature of it, it is a nice change to see artists and creators getting rich for a change.
We are still in the early stages of the NFTs therefore a lot of projects might die soon a bit like the ICO madness in 2017. For the moment, NFTs are a way to support artists again and to perpetuate the digital crypto trend.
