Non-fungible tokens, or NFTs have been around for a few years but their popularity exploded when artist Beeple sold his artwork. A digital token of an original piece of art that is unique and can’t be replaced by another copy – this concept has taken off in the world! NFTs (non-fungible tokens) rely on blockchain technology to designate an official copy of a piece of digital media, allowing artists and musicians alike the ability sell their products at whatever price they desire.
Recently we’ve seen Twitter cofounder Jack Dorsey use his platform as well as Tesla founder Elon Musk do so with relatively inexpensive items such as Tweets or Youtube videos respectively; hardly traditional marketplaces but nonetheless profitable ventures if executed correctly.
Don’t forget to check out all the hottest upcoming NFT mints, here.
The Growth of NFT
NFTs are a multibillion-dollar industry, fueled by art lovers and memorabilia hunters who buy up rarefied digital creations of celebrities from fields like music or movies.
The recent rise in popularity for NFTs has been unprecedented. They’ve jumped into the mainstream this year and they’re accelerating faster than anything else within cryptocurrency, digital assets space – it’s fair to say that there will be an impact on our society as we know it.
NFTs are empowering artists and creators with new opportunities to not only earn money, but also develop connections. People from around the world have flocked to invest in these digital assets because they want a piece of what’s being offered.
NFTs are not just a way to enable artists and collectors sell their work. The digital tokens have the potential for wide-ranging disruption in industries that relied on traditional means of doing business, NFTs bring about what was thought impossible with new technology: innovation.
This is because NFTs can represent ownership of anything unique, such as a contract conveying rights to songwriting or indeed any other asset that can be transferred through contracts.
Here, we look at five trending NFT sectors that are becoming more popular with investors and provide some insight into which one you should invest in:
1. NFT and the Art
NFTs are taking the global art industry by storm. The pandemic-led mobility restrictions, social distancing and working from home forced those who love artwork to find a new way to feed their passion for it; this led them into discovering NFT (non-fungible tokens), which provided exactly what was needed – endless possibilities with no boundaries or limitations on how one might use these objects as desired.
The spectacular results are fueling a technological art boon, as museums and blue-chip artists consider NFTs.
The use of blockchain for digital art is a new opportunity that artists are already taking advantage of. With NFTs, we can trace provenance and authenticity in ways previously impossible as well as show our work to more people than ever before.
Investor Tip: A collector’s eye is key to understanding what makes any artwork worth. An investor hoping for profit will have caution, but the real beauty of NFTs lies in how they can be whatever you want them – all thanks to your imagination. With the market exploding and just about anyone peddling NFTs without regulation or checks and balances, it is hard to know whether you are buying a rare gem of value or one of many duds that will be left holding when their tide goes out. The world of crypto-currencies is a highly speculative market, so it’s best to limit your overall NFT exposure and be prepared for most if not all investments in this space will lose value.
2. NFT within Music Industry
The music industry is jumping on the NFT train! Artists like Snoop Dogg, Lionel Richie and Boy George have made millions by selling their art as an investment in cryptocurrency.
First, they introduce a dimension of authenticity with certified ownership; second, each digital artwork will only have one or at most limited number. Musicians are exploring new ways of releasing albums. Now, Kings of Leon has become the first band to release an album as an NFT and tie special perks and features with its purchase in mind.
As the music industry continues to evolve, NFTs are becoming more and more popular with regards to ownership of songs.
Nowadays, copyright law is a complex system of rules and regulations that require people to jump through many hoops when they want to make changes.
While NFTs do not necessarily address the issue, they effectively offer a new asset separate from copyright. The “non-fungible token” or simply just one of those cool crypto things you can buy with your cash now.
Investor tip: The NFT market is a hotbed for speculators looking to make quick bucks. This leads to high prices and volatility in the markets, which can prove hard on investors who purchase items without truly wanting them just so they have something valuable sitting around their house or office—especially if you’re not an established artist with big followings already. Smaller artists without a large fan base will find it hard to replicate the success of their more popular peers, but they can still offer NFTs that fans may want.
3. NFT Galvanize a Memorabilia
NFTs have been embraced by the sports memorabilia sector. The NBA was quick to capitalize on it and blockchain company Dapper Labs made a splash when they unveiled their new platform that allows fans buy, sell or trade top-shots from all 30 teams in virtual tokens via Blockchain technology.
The high-five from LeBron James is worth more than $210,000 on the app. A single highlight of his recent dunk auctioned off and Michael Jordan himself invested in a company that got over 300 million dollars from current or past NBA players including him. Dapper Labs took a novel approach to ownership with blockchain, creating permanent certificates that cannot be replicated or deleted.
Investor tip: NFTs might be a good opportunity for those who want to invest and trade. But it is important not let yourself get caught up in all of the manipulation happening within this market, as there are many people with multiple accounts manipulating prices by trading between themselves or even just on someone else’s behalf . The issuing company behind a memorabilia NFT might go out of business and stop hosting those digital pieces of celebrity souvenirs, investors would be left with files that no longer exist tokens.
4. NFT to Put Away the Collectibles
The trainer industry is already taking notice of the lucrative opportunity in NFTs. They are focusing on investors who collect rare, limited-edition pairs and for many digital collectibles feel like an extension to physical entities.
If you’re looking for a way to invest in the future of your child’s running career, then look no further. NFTs from RTFKT Studios will make that dream come true! These collectible trainers are already selling at $10k apiece and there is an estimated amount worth nearly 3 million dollars so far made by this brand alone–in just two years time since their inception last year.
For creators, NFTs are the gift that keeps on giving. They can be sold off or gifted to others and still generate revenue for RTFKT with each transaction. The global collectibles market is booming, and virtual currency has made it even easier to invest in rare items. From baseball cards to stamps – if you’re looking for an investment that will pay off big time over the long term then check out NFTs (non-fungible tokens) today.
Investor tip: Something that’s been gaining traction in recent years is the notion of “non-fungible tokens” (NFTs), which can be used as a form or digital collectibles. Values can vary wildly depending on taste and trends; there isn’t much history yet for these types things meaning investors don’t know what they’re getting themselves into – but many advisers stress understanding your purchase well enough before hand so you won’t regret it later down the line. The more you invest, the higher your return. The idea might seem daunting at first but if done right there’s no reason why it shouldn’t work in your favor and even provide an opportunity for some nice profit on top
5. NFT Arrived in Property Market
In today’s world, real estate has been considered one of the most recent targets for NFTs. In fact property is a unique item that requires transparent and reliable record-keeping which makes it an ideal candidate as far as uses go.
The future is now a reality. In 2021, an online piece of land was scooped up for over $900K in the blockchain-based Decentraland world–the most expensive sale yet. Decentraland is a virtual world made up on blockchain technology where anyone can buy and sell ownership in online land. Users are able take an interactive walk around buildings, attend events or showcase their NFT artwork collections without ever having to leave the game.
Investor tip: Property NFTs are often the playthings of ultra-wealthy individuals. These digital collectibles have become more popular than traditional investments, but this may be because they don’t offer stability or longevity–their value can change by tenfold in just one day. Don’t worry about investing in the online property market, but if you’re looking for an investment that will provide steady income when retirement comes around then don’t forget collectible pixels.