Wondering why people buy Non-Fungible Tokens (NFTs) for such an unrealistic price? What are those unimpressive and weird digital images making so much noise? Why are so many brands and celebrities jumping on the bandwagon? Are they a good investment option?
Experts believe the best time to invest in NFTs is now. Here are five best reasons why you must. (To know more about NFTs, read our previous article)
1. Grabbing those early and exclusive editions
Yes, because these collections come only in limited numbers. For example, among the top five collections on OpenSea marketplace, Azuki, Bored Ape Yacht Club, and CryptoPunks have a fixed set of 10,000 items. CLONE X – X TAKASHI MURAKAMI by RTFKT and Takashi Murakami are 20,000 next-gen Avatars.
For other collections like Creepz Shapeshifterz, chances are you might be able to collect all the different variations (1-5) of your favourite character if you grab them early. Killer GF, another NFT that is making noise, is a 7,777 generative portrait art collection by a former Riot Games Artist, Zeronis. In contrast to popular appealing girlfriends, they are dangerous assassins.
2. Buy before they become more expensive
Early time is the right time? Definitely yes. Like the stock market, buying low and selling the same at a higher price applies to NFTs. Investors must keep an eye on the trends to understand which one to pick up early. Think of all those investors who bet big on the internet in the early 1990s. Take the example of Amazon. Back in 2001, the price of each share was just $12. Today, it has reached $2,945.02. How much money would you have gained even if you had bought shares worth $100? The stories of Facebook and Apple are no different.
Another good example most of us are aware of is bitcoin. Many techies could see the worth of it as early as 2012. The story of John Ratcliff, a developer of video games from Colorado, is much known. He had bought a token at $13. In 2013 the price rose to $72. In October 2021, the cost toughed as high as 61,000. Imagine all those early investors would have made money overnight.
Timing also matters for NFT. Very often, when you come across a popular NFT project, it might have been already late and had become too expensive.
Why would you think so many brands, entrepreneurs, and celebrities are largely invested? Companies like Taco Bell, Pizza Hut, Pringles , Crockpot, Campbell’s, and Twitter are coming out with their own NFTs. Recently, Visa bought an NFT for $150,000, and Adidas for $156,000 for a digital piece of art.
Another example that amazed the entire world – a rare version of CryptoPunks was sold for $11.7 million.
3. They’re tickets to a whole new lifestyle
If you thought those animated and not-so-impressive digital art are of no use to you, think again. Buying an NFT is not only about owning that piece of digital art. It is much beyond that. It opens a whole new world for you, and you can make a lot out of that. These are evolving as a global hub for the most like-minded, forward-thinking smart techies and individuals.
For example, by buying a Bored Ape, you will get the Bored Ape Yacht Club (BAYC) membership that will grant access to members-only benefits, the first of which is access to THE BATHROOM, a collaborative graffiti board.
Describing the benefits of the BAYC, the website mentions:
The BAYC Bathroom will become operational once the presale period is over. It contains a canvas accessible only to wallets containing at least one ape. Like any good dive bar bathroom, this is the place to draw, scrawl, or write expletives.
Each ape-holder will be able to paint a pixel on the bathroom wall every fifteen minutes. Think of it as a collaborative art experiment for the cryptosphere. A members-only canvas for the discerning minds of crypto twitter.
Another collection of 10,000 avatars, Azuki gives membership access to The Garden: a corner of the internet where artists, builders, and web3 enthusiasts meet to create a decentralized future. Azuki holders receive access to exclusive drops, experiences, and more.
4. An early ticket into Metaverse
On top of their scarcity and collectability, one primary value proposition of the NFTs is your entry ticket to Metaverse. Metaverse will be a gamechanger and will disrupt the way brands connect and engage with the audience.
Much has been talked and written about Metaverse but to say the least, it is not possible at this point to estimate the transformation it will bring.
In November 2021, globenewswire.com reported a launch of a novel NFT project combining NFTs and the blockchain to disrupt the perception of NFTs in the ecosystem.
The article writes:
The Metapreneurs have announced the launch of their novel NFT project. Metapreneurs is the biggest community of entrepreneurs in the Metaverse, created on the Ethereum blockchain. In the newly created Metapreneur Metaverse, NFTs and the blockchain combine to disrupt the perception of NFTs in the ecosystem. The whole Metapreneurs’ Metaverse will start from a limited collection of 11,111 unique NFTs…Owning a Metapreneur will grant you access to an elite community of successful entrepreneurs and a never-ending list of utilities that come with many advantages and benefits.
In 2022, The Metapreneurs will hold their very first exclusive mastermind in Bali. This event will only be accessible to holders of the NFT and will get a chance to network and connect with elite entrepreneurs as well as attend private parties.
5. And what’s even better, your digital identity
Once you own an NFT, you have exclusive ownership. What is trendingthese days is to showcase your ownership by making it on your profile pic. These tokens are like your ID cards on digital world. You can be an influencer on Twitter and Discord.
Twitter is the first social media platform to support this trend by customizing profile pic to show off the NFTs in a hex-shaped profile picture on your Twitter account. It is of course to available to only verified accounts. Several influencers already have them as profile pic. Look how Tai Lopez (@tailopez) his Bored Ape as his profile pic.
TechCrunch has reported that Reddit is testing a feature that would allow its ow users to set any NFT they own as their profile picture — not only its own Ethereum-based NFTs, called “CryptoSnoos,” released in limited quantities last year.
To conclude, NFTs are a good investment, and it is always good to be an early adopter. The possibilities are currently promising and dynamically vast. This blockchain market for Utility NFTs offers outstanding potential, with the NFT community developers having innovative ideas and its linkage to Metaverse. However, they are still in their infancy, the market niche for NFTs with utility usage remains a mystery.