NFTs have opened up a whole new world of opportunities that are available to every industry. In the art realm, some artists have begun encoding their digital illustrations into Non-Fungible Tokens and selling them in NFT marketplaces. Beeple sold his piece as an NFT for millions of dollars.
Musicians are not left out of the trend, as many now mint their singles and albums as NFTs. Kings of Leon was one of the first bands to mint their album as an NFT, before donating the proceeds to charity.
Till now, many feel that NFTs are meant solely for entertainers and creatives, but that is not the case. The likes of OfficialNFT are opening up a league of use cases that could benefit the business world. For instance, some brands have to battle piracy, which makes them lose millions of dollars annually. With NFTs, these brands can encode data into an NFT that is linked to every product they sell, thereby allowing their clients to know if the product is genuine or not.
Popular NFT Marketplaces
Many of these marketplaces offer their users tools to mint and sell the NFT in their ecosystem.
Community governance seems to be the mainstay of this NFT platform because the holders of its utility token, RARI, determine what happens in the ecosystem. Community members can submit proposals and vote on them based on how many RARI tokens they have. Apart from that, active community members are rewarded for their service to the Rarible platform.
Like other NFT marketplaces, Rarible allows its users to easily encode data into NFTs and sell them. As long as the item can be tokenized into data and minted, it can be sold as an NFT on Rarible.
Various options exist for those that want to sell their NFTs in the NFT supermarket, as they can put it up for auction, leave them with a fixed price, or even make a declining price listing. The opportunities are massive.
Digital collectors have an intense love for Opensea because of the massive collections of exclusive NFTs that it offers. If a digital collectible is exclusive, there is a great chance that it may be found for sale on Opensea.
Creators are also availed with easy-to-use minting, listing, and selling tools on Opensea.
Many know BakerySwap as a DEX and AMM, but this platform also hosts an NFT marketplace that offers meme competitions, digital illustrations, as well as gaming NFT. Using the NFT marketplace is quite easy because of the seamless process of minting, listing, and sales. Apart from it offering an NFT marketplace, it also offers other DeFi features like a crypto launchpad.
Some marketplaces tend to attract NFTs of a particular genre, and Enjin is one of them. As the blockchain gaming world expands, the demand for gaming collectibles is increasing. Enjin tends to satisfy this thirst, as it is the home of exclusive gaming collectibles.
NFT game lovers can list their skins, weapons, and other gaming collectibles from popular fantasy games set in different multiverses.
Like Enjin, KnownOrigin is an NFT supermarket that focuses on a genre, which is art. Art is one of the popular use cases of NFT, and the rising demand for digital illustrations has created a void that KnownOrigin fills.
It created a platform that makes it easy for artists to mint their illustrations and artworks, then place them up for sale. Art lovers can find exclusive art pieces, and authenticate them.
Why Do People Demand And Supply NFTs?
If there was no demand for NFTs, there wouldn’t be numerous NFT marketplaces in existence.
Non-Fungible Tokens have allowed creative individuals and brands to tokenize assets and sell them off to potential collectors. Celebrities like Snoop Dogg and sports organizations like the NBA have created collectibles for their fans. Owning these collectibles can be likened to holding a slice of history. Some collectors are obsessed with NFTs from popular brands because of the potential them increasing in value. To some, it is a type of investment.
Musicians have dealt with issues like piracy, low income from streaming platforms, and much more. These have taken a turn for good with these digital assets. They can tokenize their singles, albums, tickets, and illustrations into NFTs, then sell them off to their fans. Some music creators are embracing the warm arms of NFTs because it offers them an extra stream of income since the pandemic sliced a large part of their revenue stream.
A key aspect of these tokens is the sense of ownership. People that purchase these tokens are sure that they have the original copy and not the pirated version. It is easy for a buyer to check the history of the ownership and sales through the data on the blockchain.
Operations of an NFT
NFTs like their counterparts, fungible cryptocurrencies are stored in the blockchain. At the moment, many NFTs are hosted on the Ethereum blockchain. Many marketplaces are integrating with the Ethereum chain to make it easy for their users to mint and sell their creations.
Before a creator can create this token, they have to undergo the process of minting. While minting on the Ethereum network, a certain amount of Ether would be requested to tokenize the data into tokens. As long as an item can be converted into digital format, it can be minted. Creators can mint tickets, digital format of a pair of sneakers, music, GIFs, memes, sports cards, and much more.
For every item that is minted, the owner has the exclusive right to it, though they can decide to sell it to someone else. To sell the non-fungible token, the owner can decide to opt for an auction process or to place a fixed price on it. If the NFT is on the Ethereum network, the buyer would have to use Ether to purchase exclusive ownership of the digital asset.
What To Consider Before Creating an NFT
Many marketplaces have created a seamless system that makes it easy for creators to churn out their NFTs. Anyone can create an NFT, as long as the said person has peculiar content that they want to tokenize and the required crypto to fuel the process.
Before a person mints an NFT, some things have to be considered to ensure that the tokenized digital asset is not removed from the marketplace.
What are the legal issues surrounding it?
Before minting an NFT, it is important that the user has the content rights to do this. Requesting for permission from the content creator prevents the user from facing lawsuits and probably paying compensation. Does your country tax NFTs? How does the Securities and Exchange Commission view NFTs and their sales?
Is it unique enough? Will there be a demand for it?
With the high gas fees on the Ethereum network, it may be pointless to mint an NFT that no one wants.
One way to find out if there would be a demand for digital assets is by looking at the purchase trend within the ecosystem.
Are you the owner of the item?
If the answer is no, why do you want to mint it? It is advisable to mint when you have the exclusive right of ownership over the item or have received permission from the owner.
Can you deal with the cost?
Minting an NFT is not free, as it comes with some resultant costs. Are you ready to pay the fees attached to the minting process? If the estimated sales price is not more than the minting fees, it may be pointless to mint the token.
Some virtual ecosystems now have in-house NFT marketplaces, where users can sell the digital assets minted within the ecosystem. This is common in virtual platforms with gaming tendencies. Examples are:
This is a virtual universe, where users can explore a different world, and create a civilization to their taste. They can buy lands, erect properties, interact with other residents of the virtual city and do much more. It comes with an NFT marketplace where users can sell digital assets to other community users.
• Axie Infinity
When it comes to popular gaming multiverses, Axie Infinity ticks the box. In this platform, players can battle it out with others, negotiate, and do much more. It has an in-house NFT marketplace, where people trade Axies, a digital pet. This ecosystem has evolved to the extent that many are playing it professionally and earning a living through it.
- Regularly, a new NFT marketplace is born, and many of the new ones are starting to see the need to focus on a genre. As the use cases of NFTs expand, it is expected that more marketplaces will fill the void.
- While minting an NFT, it is important that the guidelines of the marketplace be followed to the latter to ensure that you do not lose the crypto earmarked for the minting process.