NFTs or Non Fungible Tokens are unambiguous representations of assets, both digital and physical, on the blockchain network. They use the same technology as cryptocurrencies, but unlike them, NFTs cannot be divided or exchanged because they are unique and can’t be replaced with something else. However, thay can be bought and sold.
Most NFTs are part of the Ethereum blockchain and they can be anything digital, like music, videos, drawings, virtual pets, characters, and even tweets. It was a real revolution in the world of gaming and it is also changing the world of art, since some digital creations are already being considered authentic works of art that are sold in auction houses for millions of dollars.
All of this may sound a little crazy, but this year the first tweet by Twitter CEO and co-founder Jack Dorsey was acquired at auction for more than US$2.9 million in the form of NFTs. While the tweet is still online for everyone to see, it is owned by the man who bought it, Sina Estavi.
A great number of digital artworks have also been sold, like the collage “Everyday: the first 5000 days”, created by Mike Winkelmann, which was purchased at the famous Christie’s auction house for US$69 million. Also, CryptoPunk #9998, part of a collection of 10,000 unique collectible characters, was sold for a staggering US$532 million.
But, what if you want to invest in NFTs? Then you’ll need to open a crypto wallet that has to be funded with the cryptocurrency required to buy the NFT you want to acquire. For example, if the NFT that caught your eye was built on the Ethereum blockchain technology, then it might require its purchase in Ether tokens. There are several marketplaces that support NFT purchases, some of them are OpenSea, Larva Labs/CryptoPunks, Axie Marketplace, Rarible, Foundation, NBA Top Shot Marketplace, among others.
Are you considering buying NFTs? Tell us in the comment section below.