The boundaries between offline and online worlds are being merged. Leaders in technology, biotechnology, economics, cybersecurity, futurology, philosophy, and other fields talk about bridging the gap between the real and virtual worlds. And part of the futuristic realities is already here with us.
Digital assets called non-fungible tokens (NFTs) are one of the building blocks of the bridge between the real and virtual worlds. This article will help you know what an NFT is, how to find NFT projects early, and how to choose them correctly.
Technologies connecting the physical and digital worlds are altering human evolution and changing the world we live in. And NFTs, which appeared in 2014, play a unique role in this.
A non-fungible token is a digital asset, also called a cryptographic asset. They’re records of digital ownership stored on the Internet, specifically, on a distributed ledger powered by the blockchain. A distributed ledger also referred to as a shared ledger or distributed ledger technology (DLT), is a type of database or a system of information recording.
NFTs are called non-fungible because they’re unique and can’t be matched with an equivalent or replaced with anything. They come with their unique identification codes and metadata, data that describes other data. For example, author, date created and modified, and file size represents basic document file metadata.
These tokens are shared and replicated among a decentralized network’s members. NFTs are bought and sold like the decentralized digital currency Bitcoin. However, unlike an NFT, each Bitcoin is the same in value. That’s why Bitcoin is fungible: it’s interchangeable and isn’t unique.
Conversely, a non-fungible token represents a real-world object such as art and music. Their sales are completed online, frequently via a cryptocurrency. Moreover, NFTs are often encoded with the same underlying software as cryptocurrencies.
Non-fungible tokens can theoretically be attached to any intellectual property. So far, the art, music, collectibles, gaming, and virtual reality sectors have gained more attention. But what are some examples of NFTs?
Art lovers can own part of an NFT of Austrian symbolist painter Gustav Klimt’s painting “The Kiss.” The digital copy of the painting is divided into 10,000 pieces, and you can purchase the digital rights to a piece.
Even if you purchase all the 10,000 pieces, you won’t own the physical panting. Instead, you will be the owner of the digital copy.
Here is another example. Digital artist Mike Winklemann (Beeple) created a composite of 5,000 daily drawings. The digital artwork, for $69.3 million.
In 2021, Twitter founder Jack Dorsey sold his first-ever tweet as an NFT to crypto entrepreneur Sina Estavi. The deal cost $2.9 million.
Currently, metaverse NFT projects are a hot-button topic. The metaverse will allow its users to showcase digital forms of art and property. And NFTs will enable users to put a price on that content with proof of ownership. After all, an NFT is a digital certificate of ownership.
Amid a digital and physical transformation, you might be seeking NFT projects. The NFT industry growth has paved the way for numerous projects to come to life. According to Business Wire, the global non-fungible token market is forecast to make up $211.72 billion by 2030, with a compound annual growth rate (CAGR) of 33.9% from 2022 to 2030.
To find good NFT projects early, first, you need to figure out where to look for NFTs and whether it’s a good investment. For this, you need to carry out thorough research and analysis.
Recently, crypto markets have witnessed a plunge. Therefore, it may be impossible to avoid risk altogether when it comes to NFT investing. However, can help you gain better insight into market trends and opportunities for good investments.
To find an NFT project early, you can use various apps and NFT marketplaces, calendars, and platforms, such as:
The first calendar in the NFT Universe is NFT Calendar. They cover the most notable releases, significant occasions, and eye-catching drops. Look for upcoming releases using the NFT calendar offered by Business2Community and NFT Calendar that present details for the weeks and months ahead if you’re interested in how to find NFTs early.
Conduct research by going through the information available on Twitter. Many web artists use Twitter to market their creations and collections, so you can follow them to hear about upcoming drops. Alternatively, you can take advantage of various Twitter accounts that inform their followers of exciting projects in real-time.
Discord is the highest-ranked invite-only app that NFT fans use to build community. To use Discord, you need to create an account, join the Discord server of a particular project, unlock your permissions on the server, and choose a channel of communication. This is how you can connect with like-minded people and look for projects with higher engagement.
Recently, YouTube has announced it is expanding into NFTs to allow users to “own” videos produced by creators. On YouTube, you can use various channels to keep your finger on the pulse. Specifically, consider following channels like NFT Zerk, Ryan D Crypto, Kosher Plug, Bento Boi, and Champ Crypto.
This platform is built on the Crypto.com blockchain and doesn’t charge any transaction fees for its purchases. Use the “Drops” page to search for new upcoming projects. Also, subscribe to the email list to get notifications about the drops going live.
This is the largest NFT marketplace in terms of asset selection and the most frequently used source. Its monthly trading volume accounts for billions of dollars. OpenSea charges 2.5% of every transaction. You need to open an account and use “Explore” to do your research and browse through rankings to figure out which projects are popular.
Binance is among the top crypto exchanges in the world. You can take advantage of its large asset selection and substantial daily trading volume. The marketplace takes a 1% transaction fee for making purchases. You need to sign up for an account, set up a wallet, and search for good projects.
Rarible is another helpful resource for keeping tabs on upcoming drops. Currently, you can make a purchase only on its web-based platform. As for charges, buyers and sellers must pay a 2.5% fee for purchases. You need to sign in to Rarible by synchronizing your wallet so you can purchase and store your digital assets.
Nifty Gateway Marketplace
Nifty Gateway is known for exclusive offers. It doesn’t charge fees for purchases, but sellers must pay a 5% commission and a $0.30 transaction fee. You need to open an account and buy a wallet, though it’s optional to buy digital assets.
SuperRare is another good choice in terms of exclusive crypto art marketplaces. Here, you can find a curated array of digital artwork produced by prominent artists and creators. You need to create an account with SupeRare, look for projects, and use your digital wallet for NFTs.
To choose a good NFT project, focus on the following points:
Below, you can read some of the top NFT projects in 2022:
Autograph.io, also known as Tom Brady’s NFT platform, is centered around sports. This project sells popular athlete-related non-fungible tokens. This project has big-name partners such as Tiger Woods, Wayne Gretzky, Tony Hawk, and more. In addition, Autograph’s NFTs are individually signed, which makes them one-of-a-kind. Specifically, a signed Brady NFT is currently being sold for $4 million.
In the Axie Infinity game, users can purchase, collect, and battle Pokemon-esque monsters. The game allows you to breed in-game creatures and sell them for real-world crypto. Some Axie Infinity NFTs have sold for $600,000.
The game received $7.5 million Series A funding from Mark Cuban alongside other investors. Additionally, Axie Infinity received support from Ubisoft and was valued at $3 billion in October 2021.
CryptoKitties was the original blockchain-based game that started in 2017. Like Axie Infinity, CryptoKitties users buy, trade, and breed unique digital cats. Moreover, CryptoKitties also has the support of Ubisoft and Warner Music Group.
As of October 2020, CryptoKitties were sold at a total volume of $21 million. Due to the large trading volume, the company moved from the Ethereum platform to its own dedicated blockchain, Flow.
The online world Decentraland, based on the Ethereum blockchain, allows users to create their avatars and buy plots of virtual land. Here, all the digital assets, such as clothes, cosmetics, and land, are structured as non-fungible tokens.
Decentraland experienced immense growth between 2020 and 2021, with a 1,300% increase in the userbase.
This project is created by famous marketing guru Gary Vaynerchuk (GaryVee). These non-fungible tokens are digital art, and each “character” features traits GaryVee admires. The 10,255 tokens are divided into categories, with a limited category featuring eight rare, five very rare, and two epic tokens.
The gift token category comes with additional perks. For instance, one of the tokens grants users one-on-one meetings with GaryVee in New York City. Another token grants the user six physical gifts over three years.
Non-fungible tokens (NFTs) are closely connected with the merge of real and virtual worlds. These tokens are digital assets attached to real-world objects such as paintings. To know how to find NFT projects early, you can use calendars and top marketplaces to monitor upcoming projects and pay attention to NFT rarity and the team behind it to reveal good projects.