The world of NFTs is changing by the minute, but what are they? NFTs or non-spongy tokens can be tied to one. Think of them as tokens attached to an expensive digital asset. It may (or may not) make you a lot of money in the future (more below). NFTs are similar to cryptocurrency, but there are some major differences. It is complicated.
Here’s what we know. You can bid on an NFT for a pretty penny (most are expensive). But that does not mean you own the asset. In short, NFTs offer a blockchain-created certificate of authenticity for a digital asset or work of art. You can find them everywhere from the NFL to Variety. And DC even provides free NFTs tomorrow (more below).
for you it’s ok. We will break down what NFTs really are, how much they cost, and how you can bid on a digital asset to get your own NFT.
What’s an NFT?
This is the part that takes a bit of open-mindedness. An NFT is a unique digital token, with most using theblockchain to digitally record transactions. It’s not a cryptocurrency like Bitcoin or Ethereum, because those are fungible — exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so there’s a listing of who owns each one.
What makes an NFT unique is the digital asset tied to the token. This can be an image, video, tweet or piece of music that’s uploaded to a marketplace, which creates the NFT to be sold.
What kind of NFTs can I buy?
NFTs can be tied to any digital asset. Anything you see online can be an NFT — music, social media posts, clip art and more. Here are some of the latest nifty NFTs we found.
Free DC x Palm NFTs
Starting tomorrow, new and existing DC fans that register for FanDome can get a free NFT. and a second free one for sharing on social media. The NFTs will feature three levels of DC superhero covers, including Batman, Wonder Woman and Harley Quinn. Signing up for FanDome is free and only takes a few seconds. DC will use the Palm blockchain.
The latest big news in NFTs is TikTok’s new video collection called TikTok Moments. The videos will celebrate the impact that artists have on TikTok. Proceeds from the collection will go to NFT artists and creators. The first collectionand be available starting Oct. 6 on the Etherum.
And Fortune gave its readers a chance to get in on the NFT craze. The company sold 256 copies of the limited edition cover from the graphic artist Pplpleasr for Fortune’s August/September magazine on OpenSea. The copies sold out within five minutes starting at 1 Etherum (estimated $3,000). But the NFTs were available for resale at three times the cost.
Sorare digital trading cards
But NFTs go beyond artists and music. Recently, Sorare released its “Super Rare” Lionel Messi digital trading card that’s currently bidding at €29,992.75, equivalating to over $35,000. Sorare also announced that it raised $680 million for its next-level sports fantasy game. The funding is currently led by SoftBank.
Tiger Woods’ Autograph collectibles
And in sports, Tiger Woods is currently selling thousands of digital collectibles on Autograph on the DraftKings marketplace. The collection starts at $250. Naomi Osaka, Derek Jeter and Tonk Hawk are also releasing digital collectibles on Autograph, which is co-founded by Tom Brady.
As the hype for NFTs grows, expect more digital assets to come up for sale and bring in some big money.
Where can I buy and sell NFTs?
While you may not want to jump right in bidding six figures, there are multiple NFT marketplaces out there to check out, with Opensea being the biggest. Buyers can search for art, domain names and random collectibles to bid on without having to break the bank. And Woods’ digital collection is one of the many NFT collections available on DraftKings marketplace, including Tony Hawk, Simone Biles and other athletes.
And Christie’s recently auctioned Curio Cards, a set of 31 NFTs, for $1.2 million. Christie’s pointed out that the Curio Cards are the oldest pieces of art on the Etherum. The collection, Post-War to Present: The NFTs, was auctioned off on Oct. 1.
On the other hand, if you want to sell an NFT of your art, you can use NFTify, the Shopify NFT store, to sell NFTs without creating your own store. You’ll also need a MetaMask account to get going. And Burberry recently announced a partnership with Mythical Games to gamify buying, selling and collecting toys as NFTs through the Blankos Block Party game. CNET’s own Chris Parker also made a step-by-step guide on how to make and sell your own NFT, in the video below.
If I have an NFT, do I own the asset?
That’s the real kicker to understanding the whole concept. The person who buys the NFT doesn’t own the actual asset.
“NFTs challenge the idea of ownership: digital files can be reproduced infinitely and you do not (usually) buy the copyright or a license when purchasing an NFT,” said Jeffrey Thompson, associate professor at the Stevens Institute of Technology in Hoboken, New Jersey.
For example, the creator of thesold an NFT of it for $590,000. The person who bought the token owns the token, but doesn’t actually own the meme. That still belongs to the creator, who held onto intellectual and creative rights.
What the owner of the token has is a record and a hash code showing ownership of the unique token associated with the particular digital asset. People might download Nyan Cat and use it on social media if they want, but they won’t own the token. This also means they can’t sell the token as the owner can.
Why are NFTs so expensive?
As with physical collectibles like Beanie Babies, baseball cards and toys, there is a market for NFTs. Buyers tend to be tech savvy people who understand the idea of wanting to buy digital goods and have probably killed the last year with cryptocurrencies. Ethereum, for example, went from just over $ 100 last March to a current price of around $ 3,400. In some cases, buyers just bend their digital wallets to show how much crypto they have, but for others, there is a deeper interest.
“Especially for art-related NFTs, there is a huge increase in demand due to their novelty and creativity among early artists,” said Jason Lau, CEO of the cryptocurrency exchange OKCoin, in an email. Whether it’s a physical work with an attached NFT (think of it as a digital autograph and proof of truth) or a completely digital work (where NFT is the art), this new medium opens up new ways for collectors and artists to explore their in relation to the work of art itself. “
It’s also great for the artists, Lau says. By selling digital art directly to those interested, an artist can start making money on work without having to try to sell it in a gallery.
What are the pitfalls of NFTs?
One downside is the hundreds of dollars in fees required to set up an NFT. If you make your own token on the Ethereum blockchain, you will need some Ethereum, which as mentioned earlier is a bit expensive. So after you make an NFT, there is a “gas” fee that pays for the work that goes into handling the transaction, and it is also based on the price of Ethereum. Marketplaces simplify the process by handling everything for a fee when an NFT is sold.
There is also an environmental cost. Like Bitcoin, Ethereum requires computers to handle the calculations, known as “mining”, and these computer tasks require a lot of energy. An analysis from Cambridge University found that mining after Bitcoin used more energy than the whole of Argentina. Ethereum is number two after Bitcoin in popularity, and its power consumption is rising and can be compared to the amount of energy used in Libya.