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NFT Market Matures - Are NFTs Worth Investing In?

  • Author

    Coinhunt CC

  • Reading time

    5 min read

  • Published

    5/8/2022

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The $2.9 million non fungible tokens (NFT) of Twitter Inc. founder Jack Dorsey's first tweet was sold for a humiliating highest offer of less than $14,000. In March of last year, the CEO of the Malaysian blockchain business Bridge Oracle, Sina Estavi, purchased Dorsey's first tweet, which read, "just setting up my twttr ''. An NFT marketplace called OpenSea advertised it earlier this month, and Estavi was hoping to get at least $50 million. Although the NFT industry has been around for some time, it exploded in 2021, and it's still unclear whether the high pricing for NFTs is warranted. Since their all-time highs of $4.64 billion in January, worldwide NFT sales have fallen 41%. The data suggests that the market for NFT art is developing

 

According to Ramkumar Subramaniam, CEO and creator of GuardianLink, every NFT in the future would be transformed into a utility. Creators, artists, and businesses may use the no-code NFT platform to create their launchpads for their NFTs. NFTs are becoming more popular for use cases and consumption. According to Subramaniam, people would wish to wear digital clothing for their virtual formal meetings when Metaverse becomes a reality. Some clothing companies at the time took it extremely seriously and saw it as more than just a promotional or collecting activity. Digital clothing is something that people can buy, wear for a while, then trade in something new if they become tired of it or the style changes.

 

When this happens, NFT space will become more commercial. The future of NFTs lies in their ability to be used. According to the CEO of GuardianLink, the uniqueness of each NFT artwork now exists, but this will change in the future. "Commodity status for NFTs is on the horizon. The importance of NFT's worth will rise dramatically"


NFT Use Cases


You can create distinctive digital art using NFTs that are only available once. NFTs are beneficial for proving ownership, from the likes of Beeple, who sold a collection of digital art for millions, to the expanding number of NFT markets that showcase a wide range of creative masterpieces. This NFT-based art file provides the buyer with enough assurance that there is only one copy of the original in existence since digital files are so easily replicated by other artists and consumers alike. Blockchain's immutability enables this degree of rarity and uniqueness in a digital file. A code that may be written into the NFT to give back a portion of the sale to the original artist is another benefit of NFTs for artists.

 

In the gaming industry, NFTs might be one of the most beneficial innovations. As a result, gamers will be able to experience a new level of ownership that has never been possible before thanks to NFTs. As an example, consider a game in which players advance through the stages by collecting virtual, non-fungible in-game coins. After they've achieved the most desirable objectives, they may sell the virtual coins they've accumulated for a profit since they own them.

 

Tickets may also benefit from non-fungible tokens. Tickets for sporting events and concerts might utilize NFTs on the blockchain to reflect their value. That way, all attendees will have their unique ticket and any unauthorized resale will be detected and prohibited. NFTs may be used in the real estate market to represent actual land or property. You might think of it as a digital token that represents a piece of land with many different characteristics like location and price. Because of its potential to transform almost every industry in the world, NFTs are very trendy right now.


What Are The Pros Of NFTs?


When it comes to NFTs benefits, there are dozens. Because NFTs are part of the blockchain, they may be used to link ownership to a specific account. As a result, customers are protected from the risk of purchasing counterfeit NFTs. However, it is critical to inquire as to whether or not you possess the item in question. In the case of the Mona Lisa, for example, obtaining a photograph of the painting does not make you the owner of the copyright to it.

 

Using NFTs, you can be confident you're holding onto the actual item and therefore maximizing the value of your possession. To put it another way, NFTs have the potential to revolutionize the current rules for validating and controlling asset ownership. You can simply transfer ownership of NFTs since they can be found on a blockchain network. You may also reap the benefits of NFTs' quick asset ownership transitions in a wide range of real-world settings. The uniqueness of non-fungible tokens is a major factor in their advantages.

 

NFTs are produced on the blockchain, which implies that they are linked to a specific set of unique data. NFTs stand out because of their unique characteristics and the potential they have to provide value. In addition, NFT issuers have the option of issuing a limited quantity of NFTs to create a sense of scarcity. The immutability of the blockchain, on the other hand, ensures the legitimacy of the NFTs. The immutability of blockchain-based NFTs assures that they cannot be changed, removed, or replaced.