NFTs Craze on the Digital Art market- Explained

A remastered digital version of the Nyan Cat meme from 2011 got sold for about $600,000 USD in an online auction last Friday, February 19.

Remastered Nyan Cat meme from 2011 by Chris Torres

What is NFT?

Blockchain?

Blockchain Process

And most of the NFTs are part of the Ethereum Blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain supports NFTs, that stores additional information which makes them function differently from an ETH coin.

So to clarify, NFT is a non-fungible token which that just means that the art is original, unique and the token cannot be duplicated because it lives on the blockchain.

The NFTs Hype

  • A group of 34 digital collectibles known as CryptoPunks which was sold for around 1 Million USD (in ETH) in just minutes to an unknown investor.
CryptoPunks, the first “Non-Fungible Token” on Ethereum
  • Logan Paul, an internet personality made $3,540,456 in 1 day by selling 3000+ unique digital copies of a pokemon card with a holographic image of him and then later made $5M.
Logan’s Pokemon Card Packs
  • And to cross them all, “Everydays — The First 5000 Days” — an NFT-based artwork by Mike Winkelmann known as Beeple was sold on Christie’s auction for 69 Million USD, making the author the third most expensive living artist at auction whereas the opening bid was 100 USD only.
Beeple’s collage, Everydays: The First 5000 Days, sold at Christie’s

How to enter into NFTs world?

100 ETH To USD

So for example, if you sell an art today for one Ethereum and after one year it would sell for 100 Ethereum which is basically equal to $211,541 as of now. And you will be getting $21,154 only from a 10% commission or depending on how much commission you put.

Can anyone make an NFT?

Rarible, a marketplace to create NFTs and sell them

This is the requirement that has lots of complications to look out for, like the hidden fees involved in transactions called as Gas fees, which is a fee or pricing value, required to successfully conduct a transaction on the Ethereum blockchain platform. There also exist different fees for buying or selling or for conversions which changes from time to time.

So all these fees can add up to a lot more than the price you get for selling the NFT. And since various sites have different fees associated, little research is needed before selling the NFT.

Conclusion

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