Words by Alana Harris.
If you’re anything like us, when the term NFT started cropping up all over the place, you were probably thinking, what the fu*k is that.
We’ve dipped our toe into the ocean of knowledge that is crypto, blockchain and marketplaces and now we *think* we’re ready to give you the basic low down on all things NFTs so that you can be clued up on this cultural phenomenon.
How do they work?
These totally unique tokens are supported by blockchain technology, which basically just means that they are made using the same kind of programming as cryptocurrency. The blockchain helps to authenticate the unique identity and ownership of an NFT.
What makes NFTs different from bitcoin?
Unlike cryptocurrencies like bitcoin, NFTs aren’t just virtual cash. NFTs can be any kind of digital item, be it music, videos, art, images or graphics, it just depends on the creativity of the person making the NFT.
Famous NFTs – which have all fetched eye watering amounts of money – have been the ‘Disaster Girl’ meme image, which sold for $473,000, the Charlie Bit My Finger video, selling for $761,000 and Beeple’s Crossroads artwork which fetched $6.6 million.
So can only the owner of an NFT access it?
Well, no, much like with real art, you don’t necessarily have to own an NFT to download and look at it.
So you can literally watch and download this Grimes video right now, but someone paid nearly $390,000 for it.
I don't get it?
You may be thinking, why the fu*k would someone pay so much dolla for something you’ve just seen for free.
Well, the selling point of NFTs is that only one person can own the original.
In the words of Joe David, founder of Myna & Nephos Accounting ‘View an NFT as one of a kind Pokemon Card — back in the day, we would want particular shiny cards that not many others have and would buy or trade to get them. Some of these one of a kind cards are more expensive and exclusive than others, and some start off small and get more desired as people talk about them. An NFT is like this, but it’s digitalised, it’s one of a kind, they hold data that highlights this. Some are incredibly exclusive and others are just starting out.’
This is why a lot of the hype surrounding NFTs is to do with NFT artwork, NFT’S are basically the latest digital age collectible investment.
What are some other benefits of NFTs?
Joe told us, ‘Other than the fact they can become an incredible profitable asset, they’re a great way to create community and live amongst a community of individuals in the metaverse who all hold similar interests to you.
As NFTs continue to become more popularised, they’re offering a great opportunity for others to build and create memberships or exclusive online clubs.
If you’re an artist, whether professionally speaking or holds it as a hobby, they provide a great way to create additional income in the online space – but for every trade or further sale down the line, NFTs can hold royalties (meaning you continue to make money for years to come).’
Who can make an NFT?
Despite the fact that NFTs can sell for an obscene amount of money, anybody can make them, you don’t need to be a famous artist or celebrity.
Unfortunately, if you made and sold an NFT tomorrow, you’re unlikely to become a millionaire from it, but NFTs have opened a new avenue for creative business, so if you’re an artist, it might be a new domain you want to explore and sell your art in.
How can I make an NFT?
Making, or in tech terms, minting an NFT isn’t as tricky as you might think. Here’s our uber quick overview of how to do it.
First off, you just make whatever you want to sell, whether it’s an audio clip, a photo or a digital piece of art.
Next you need to get a crypto wallet and some crypto to put in it, you need the wallet so that you can receive money, and you need the crypto so you can pay the fees you come across when you put your NFT up for sale.
Now that you’ve got your wallet and your cash, you need to choose a marketplace to sell your NFT on which you’ll then link to your wallet.
Once your wallet is connected you’re good to go. You put you’re NFT up for sale, either at a fixed price, or you can choose to auction it (a bit like a ebay bid) either for a set or unlimited amount of time.
When it comes to buying NFTs, Joe’s top tip is research research research, and not to get ahead of yourself.
‘Your own research is key. I do think that you should seek guidance from respectable sources, and then lean into what feels right for you. Make sure to get yourself set up first and all your wallets ready to roll & go from there. If you’re looking at seriously buying NFTs, make sure to seek guidance later on when it comes to management and taxation, but find a project that resonates with you and keep an open mind. My biggest tip is to NEVER spend more than you can afford to lose, this is only because some NFT projects can flop.’
The final consensus on NFTs
NFTs have been discussed, disputed and debated ever since they made their appearance and a bit like a certain well known spread, you either love the idea of them, or hate them.
For a lot of people, they’re a bit pointless, and we have to say, we’re not too sure why someone would shell out millions of dollars for a tweet turned NFT.
We can however see that, for artists and creatives, NFTs present a new way and space to connect directly with their audiences, one that maybe isn’t as gatekept and conventional as real world environments.
NFTs have created a new digitall community that for like-minded enthusiasts and creatives can be exciting, diverse and innovative.
