Hunt for the right NFT – Classifying NFTs’

By February 25, 20225 minute read
Hunt for the right NFT - Classifying NFTs'
Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.

With the help of Colexion, a digital collectibles website, cricketer Yuvraj Singh debuted his Non-fungible token (NFT) collection in December 2021 in order to give back to his adoring fans some of the most memorable moments of his career. Yuvraj Singh’s famous bat, which he used in his first-ever century against Bangladesh in the 2003 ODI match in Dhaka, was propelled into space by a hot-air balloon from Earth.

Fans can now buy a replica of the cricketer’s 1st-century bat and a 3D model of him from the NFT listed. Collectors of Yuvraj’s NFTs will be able to follow his life’s journey through a unique virtual NFT museum created by Colexion. 

Indian superstars like Yuvraj are cashing in on the increased demand for digital collectibles.

Nonetheless, why is it that NFTs have become so popular?

Blockchain is used to produce non-fungible tokens, which are digital valuables that are one-of-a-kind. Decentralized data is recorded in a time-stamped public ledger known as the blockchain, which is also utilized by cryptocurrencies like bitcoin.

NFTs can represent real-world artifacts like art, music, in-game goods, and films. On the internet, they are bought and traded mostly in cryptocurrency, and they share much of the same software. In most cases in India, NFTs are purchased using Ether or Indian Rupees, and the blockchain retains a record of the transactions. Anybody can view the NFTs, but only the buyer has the ability to claim ownership.

So, to Begin With, What Exactly Are NFTs?

Making an exact reproduction of the Mona Lisa from the brush strokes and the original paper is far more difficult than doing it with digital material, which can be simply copied and circulated. NFTs are unique digital collectibles of art that cannot be reproduced in the same way as their physical counterparts. You can’t copy or replace these properties at all.

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However, even if the content itself is reproduced and shared on social media, the buyer retains ownership of the NFT. An NFT may be analogous to a photograph or a work of art that you can place on your wall. Here, the original owner still possesses the original.

The Different Types of NFTs

The term “NFT” is still quite vague, with practically anything qualifying as an NFT. Here are some of the most popular and sensible NFTs that are now available on the market.

To begin with, there are the visual arts.

Of all the NFT methods, art is by far the most widely practiced. When NFTs were first introduced, artists had a golden opportunity to sell their greatest work online as if it were real. The most costly NFTs now on the market are pieces of art. “EVERYDAY’S: THE FIRST 5000 DAYS” by popular artist Beeple is the most expensive NFT ever sold, according to Luno. This artwork fetched $69 million at auction. Other exorbitantly priced NFTs are shattering the financial accounts of billionaires.

This applies to video art as well. There has been a massive demand for short films and GIFs. “Crossroad” is a 10-second film that shows Trump resting on the ground, and this was sold for $6.6 million, which is extraordinary. Beeple was once again responsible for this one.

A musical composition or performance

The NFT spectrum also includes music. Records, cassettes, CDs, and now digital formats have all been used to record and disseminate music as a fungible product for decades. On the other hand, musicians and DJs have recently begun selling their work as NFTs, making millions of dollars in only a few hours.

Due to streaming platforms and record label cutbacks, musicians generally only receive a percentage of the money their music produces. NFTs allow musicians to keep nearly all of the money they make, which is why so many musicians are turning to this form of making money.

Items from Video Games

Video games are yet another uncharted territory for NFT. NFTs aren’t being sold as entire games by companies, but Skins, characters, and other in-game stuff are up for sale instead. While millions of DLC assets are offered to players, an NFT item can only be bought by one individual. Developers can even sell limited edition Downloadable content (DLC) on the NFT market.

Collectibles and Trading Cards

An analogy for NFTs is that they are digital trading cards. We’re all familiar with the tens of thousands of dollars that some limited edition baseball and pokemon cards get on the secondary market, and the NFT market is no different. If you’re looking for a way to keep your trading cards, you can purchase and sell them online, just like the real thing. A few even sell for more than a million dollars.

The NFT market is open to the sale of a wide range of collectibles, not simply trading cards. A piece of memorabilia that you consider to be valuable can be sold.

Major Sports Moments:

Memorable sporting events are something that can’t be replicated in the real world. These are small snippets of historic sporting moments, such as game-changing slam dunks or touchdowns. As brief as 10 seconds, these recordings may sell for as much as $200,000.

Memes

Memes may now be purchased and traded on the NFT market, making the internet even more intriguing than it already is. Interestingly, the individual who appears in the meme is sometimes the product’s vendor. Nyan Cat, Bad Luck Brian, Disaster Girl, and a slew of other well-known memes made the cut, earning anything from $30,000 to $770,000. The Doge meme, which sold for $4 million, is the most valuable meme to date.

Domain names

NFT fever has expanded to domain names, and they’re not immune. On the NFT market, you may register a domain and then sell it for a profit. Your domain name is often managed by a third-party firm that charges a fee for its services. You may avoid the middlemen by purchasing one on the NFT market and claiming sole ownership of the name.

Virtual Fashion

The NFT market has been virtual since the beginning, so why not fashion? Even if you spend a lot of money on an NFT of a flashy suit, you won’t be able to wear it. Fashion NFT buyers will be dressing up their online avatars rather than real people.

Remember that someone on this world paid $4 million to buy the Doge meme. Individuals who are lavish and fashion-conscious are more likely to own a virtual handbag or jewelry. Of course, there will only be a small number of each of them made.

Other Online Products

A few months ago’s NFT market meltdown exemplifies the wild west nature of online business, as demonstrated by the other topics on this list. As previously reported, Jack Dorsey was able to sell a tweet for a profit. This means that anyone may sell anything on the NFT market, and it’s open to everyone. No one can say what people would want to sell when it comes to selling their own social media content.

Conclusion

Regardless of whether or not NFTs are here to stay, for the time being, they are making a lot of people a lot of money and opening up new avenues in practically every industry. But we do recommend caution and thorough study of the platforms you use to engage with this shiny new investment sector.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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Rony Roy

Rony Roy

Rony Roy is an electrical engineer who turned tech author in the Cryptocurrency space. He got block-chained in 2012 and fell in love with tech and its use-cases and has been writing his way through problems since 2016.

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