What is the value of NFTs?

As we have written before,NFT– a non-fungible token. If a fungible asset is identical to another unit of the same asset, for example, one hryvnia is identical to other hryvnias, and exchanging one for another doesn't change the essence. Then the non-fungible asset is unique. In the real world, this could be a house or a car, for example. In the digital space, blockchain technology enables the implementation of fundamentally new ideas that were previously unattainable. A non-fungible token has a digital certificate that can be attached to anything:domainThis makes it possible to create proof of authenticity for digital content that can be owned, bought, sold, and exchanged. Moreover, the metadata and transaction history of such an asset can be verified by anyone with internet access. This means we can all know which digital wallets hold which tokens.

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What types of NFTs are available on the market?

NFT is a fairly broad term. There are many types of NFTs on the market, and as new use cases for the technology are discovered, the number of variations will grow. Currently, there are ten main categories of NFTs:

Art

For example - Beeple, Chromie Squiggles, Where My Vans Go.

Collectibles

For example: CryptoPunks, Bored Ape Yacht Club, VeeFriends.

Membership cards

For example: Proof Collective, Quantum Key, VaynerSports Pass.

Tickets

For example - VeeCon, Rocket Factory Mothership.

Virtual lands

For example – Otherside, Sandbox, Decentraland.

Domain names

For example - ENS domains, Unstoppable domains.

Games

For example – Axie Infinity, Sorare, Illuvium.

Fashion

For example - RTFKT, Adidas Originals, 10KTF.

Music

For example – Royal, Snoop Dogg, Spottie WiFi.

Movies

For example – Calladita, Keepers of the Inn.

What is the value of NFTs?

The value of NFTs lies in their collectibility and exchangeability. These are fairly subjective characteristics, as two people may value a piece of art or the benefits of attending, for example, a VeeCon conference differently. Therefore, it can be useful to have a baseline for understanding the value of specific NFTs.

An NFT can have collectible value for a number of reasons. First, it's an NFT because of its historical nature. Second, it can be a component of a specific project, in which case the NFT's value lies in the opportunity to participate in the project. Third, an NFT can be a collectible if it was created by a well-known brand or culturally relevant creator, in which case it can serve as a symbol of fan club membership.

A brief excursion into history

The first real example of NFT use was crypto art. Most projects launched between 2014 and 2019 were collectibles (Rare Pepes, Curio Cards, and CryptoPunks).

As early blockchain artifacts, these collections remain highly sought after. Participants in this relatively new market place a significant value on them due to their OG status. Moving further back in time, it's worth noting a group of art projects thriving in today's market, such as Fidenza by Tyler Hobbs and Where My Vans Go by Drifter Shoots.

While many NFTs are valuable solely for their collectible nature, most digital goods released today are valuable for their practical properties. Common examples include tokenized content access and IRL (real-life) events. Many projects, such as Kevin Rose's Proof Collective, create content exclusively for token holders. These are like membership cards to a club. Tokens, in turn, serve as entry tickets to Web3 conferences, parties, and major events. They can also serve as a mark of quality for limited-edition merchandise from fashion brands. We wrote about this in more detail in ourmaterial.

Some NFT projects reward token holders by holding events such asAirdropsDuring these events, the project team sends additional NFTs to wallet addresses that already own a particular asset. For example, the largest airdrop for the Bored Ape Yacht Club (BAYC) wasApeCoinEach Bored Ape token holder was entitled to 10,094 $APE tokens, equivalent to approximately $38,000 today. Tokens can be used to participate in the ApeCoin DAO, a decentralized autonomous organization. Owning any number of tokens allows one to propose ideas and vote on various initiatives related to the project. This type of interaction is becoming increasingly popular among NFT projects.

How to find out the value of NFT projects?

The most common way is to search inOpenSeaOn its pages, you can find the collection you're interested in and see the current minimum price and all-time sales volume.

Other useful resources for NFT research include Cryptoslam, NFT Price Floor, and Nansen. These platforms aggregate prices from multiple marketplaces and are fairly easy to navigate. If you're also developing your own business in addition to focusing on the rapidly evolving digital space, you'll need towebsitecompanies with reliablehosting, which can be ordered onNIC.UAYou can register a suitable one with us.domain, trademark (TM)and purchaseSSL certificatefor safe work with clients.