If you’re newer to the world of crypto and NFTs, some big questions you’re likely asking are:
- What are NFTs?
- Why do they matter?
- How do you know how much they’re worth to you?
NFTs are non-fungible tokens
That means they are unique digital assets on the blockchain that cannot be copied. This identification means you can be sure that you’re the only owner of your NFT and not some reproduction, and it’s tracked on the blockchain so you can follow the trail back to the creator.
While you likely have seen the most popular like Bored Apes, Cryptopunks, and doodles, NFTs include a wide range of projects, not just digital art. It’s part of what we love here at Mooned Mints. The NFTs’ digital art can be combined with community elements, event tickets, courses, music, tweets, and much more.
How Does the Market Determine Value?
NFTs are valuable because of the value people place on them and the trackable uniqueness that they offer. Sometimes that can be due to scarcity, popularity, utility, artist, or collection they belong to. This is not new for collectibles or the art world. People pay prices for original works of art from famous artists, or for first editions of books based on the value they put on the content and meaning, as well as the scarcity and purpose of the collectible.
The same rings true for NFTs and how they derive value. Collectors want to know that they own a piece of a collection by one of their favorite creators or to be a part of a group or movement. Because all NFTs are on the blockchain, you always know exactly where yours came from and be able to prove the content of the original asset.
Add in the growing interest in NFTs and other crypto and the exciting new tools and technologies that open up all kinds of new uses, and it points to a likelihood that value in the NFT world will grow and expand.
A Note on Special Utility
As we’ve seen with Gary Vee, his Vee Friends NFTs function as tickets to events and special opportunities and meetups. Gary focused on keeping the characters unique and meaningful, with the payoff of things like his conference or dinner, video games, UNO, or mentoring time with him.
Physical artwork from Picasso to some of today’s most unique artists has been tied to NFTs, too. It’s used as a pair (physical and NFT bought together), an option (you can buy the physical or the digital piece), or sometimes the physical artwork will even be destroyed once the NFT is issued.
Other NFTs can give ownership in a business, get you backstage to a concert, in-game items, or the ability to join an exclusive community. The utility that these NFTs carry is a big part of what gives them value.
The Big Picture for NFTs
While there can be a lot of new ideas and special vocabulary that we see associated with NFTs and crypto in general, our main takeaways are:
We look for these elements with NFTs to help maximize value and enjoyment, as well as to build out a well-rounded collection that grows with us over time as collectors. At Mooned Mints, we look at NFTs as collectibles you believe in for the long run, and can enjoy in the meantime.