What is NFT? Where to find and sell them?
Top Non-Fungible Token Marketplaces (NFT)
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| Image: flckr |
If you are a regular internet
user, there’s a big possibility that you have come across the big term – NFT.
How can anybody miss the biggest internet sensation of 2021?
You may have heard about the
crazy auction of Beeple’s (Mike Winklemann) digital art – Everydays: the first
5000 days – which was sold for a staggering $69 million in an online auction
arranged by historical auction house Christie’s. You may also have heard about
everything from - Jack Dorsey’s tweet to Charmin’s Toilet paper, to decades-old internet
memes such as the Disaster Girl, Nyan Cat, and Bad Luck Brain, being converted
and sold as digital art.
If you have missed anything about
it, don’t worry. This blog will answer all your queries about the buzzing word
– NFT.
What is the full form of NFT?
The full form of NFT stands for
Non-Fungible Token. NFT is the latest internet storm and it is being doubted as
the next big thing.
What is NFT?
A non-fungible token or NFT is a
form of digital asset backed by Blockchain, which certifies it to be unique and
identifiable. It is a special kind of crypto-asset stored on a digital ledger, Blockchain,
that guarantees it to be one of a kind and non-interchangeable.
What kind of assets qualify for NFT?
A non-fungible token can be
anything. It can be a video clip, picture, illustration, Gif, an audio file, music,
or anything else. So, what kind of digital art qualifies for an NFT?
When it comes to NFT, there’s no
limit. It can be a special moment; it can be a collectible card; It can be a
Tweet; It can be a meme; It can be anything. For example, Twitter co-founder
Jack Dorsey sold his first-ever tweet – which merely says “just setting up my
twttr” – as an NFT for $2.9 million.
How Disaster Girl Meme Turned into Fortune
Toilet paper brand Charmin
introduced their own collection of NFTs – digital toilet paper. Quartz put one
of their articles for sale as NFT. NBA sells highlights of special moments as
NFT on their own platform. Even popular memes are being drafted for sale in the
market. Pop star Taylor Swift put pictures of her cat as digital art, while
rapper Azealia Banks sold her audio sex tape as NFT.
So, you can be sure about one
thing – that there’s almost no boundary, and, in the future, many unexpected things
might be listed as digital assets.
Why is NFT being hyped so much?
If you are new to this term, you
might wonder why would someone buy a digital piece that can be copied,
replicated, downloaded, or recreated so easily? Many of the things mentioned
here have been on the internet forever. Where is the value in owning one of
these?
Here comes the magic of
Non-fungible tokens and Blockchain, and the creativity of the human mind.
The value lies in the human mind, and it
is a spectacular example of it. Surely, anyone can have a copy, but the authenticity of ownership is a different ball game.
The real value of a digital asset
lies in the guarantee of ownership. Non-fungible tokens are backed by Blockchain
technology – the same technology on which cryptocurrencies are founded. Once a
transaction is made, it is verified and recorded in the digital ledger, which
is open for everybody to check.
This is hugely different from
just having a copy. I have copies of some of those multi-million dollar digital
assets saved in my computer’s hard drive, but they are worth nothing. I don’t
own them, and nobody will pay me a dime for them. My name isn’t inscribed in
the Blockchain.
This could be compared to the
physical art collection. Anybody can recreate or buy a copy of Picasso or Van
Gogh, but owning one of the original paintings is a different matter and it
would cost a fortune.
Where’s the deal?
When you acquire a piece of
artwork for a personal collection, it doesn’t give you any monetary value. Owning
a piece of art is related to the artistic and emotional response of a collector.
Art lovers may find value in an expression. But, not everybody is driven by
artistic values. Artworks have resale value too. Owning a brilliant piece of
work may turn into a big profit in the future. That is true for digital assets too.
NFTs open the gate for monetization of digital arts too.
Can I create my own NFT?
Yes, you can create your own
non-fungible token. That’s the beauty of it. You can create, buy, and sell NFTs.
For that, you will have to go to an NFT marketplace – a dedicated marketplace for
digital assets. Most NFT Marketplaces are based on the Ethereum blockchain, but some
marketplaces use other blockchains.
How to Buy and Sell NFTs?
To buy something, you
need to visit a market. NFTs have their own digital marketplaces. Compare it to
an art gallery – where you can explore and buy artworks of various artists.
There are many popular NFT marketplaces where you can do business.
Before anything, you need a
digital wallet from where you will fund your transactions. Think of it as a
bank account or credit card. A digital wallet is a software-based online
transactions and payments service. It securely stores users’ information. There
are many digital wallets in the market. For example, Opensea suggests a MetaMask
plug-in.
Some of the popular digital wallets
are – Coinbase wallet, Exodus, MyEther Wallet, Trust Wallet, Trezor, Ledger,
SoFi, Mycelium, BitGo Cryptocurrency Wallet, Jaxx, StalkedWallet, Binance
Chain, Gemini, Wirex, Kraken, etc.
In the second step, you will need to
open an account in an NFT marketplace. This process is a simple one just like
any other account registration. Then, you will need to connect your digital
wallet to your NFT marketplace account. This is a critical step.
Your wallet needs money. As NFT
transactions are done in cryptocurrency, you will need to buy them. Most NFTs
are based on the Ethereum blockchain. So, you will need to buy Ether
(cryptocurrency). However, there are other blockchains too such as Binance and
Tron. At first, you will need to know about your marketplace and its supported Blockchain.
In the next step, you will fill
your digital wallet with crypto money. There is a variety of popular platforms
from where you can buy cryptocurrency. Some of the popular places to buy cryptocurrency
from are – Coinbase, Robinhood, eToro, CoinMama, Bisq, BlockFi, MyEtherWallet,
Portis, etc. Coinbase is the largest and the most popular crypto buying
platform.
After purchasing Ether, you will
be ready to trade NFT.
Buying a digital asset in an NFT
marketplace is a quite simple procedure. Compare it to a shopping mall. You
explore the mall and inspect the displayed items. When you like an item, you
decide to buy it. Marketplaces follow the auction house model. So, when you chose a crypto asset, you submit a bid to purchase it. Cryptocurrency is transferred
from your digital wallet and the process is complete.
How to create and sell your own NFT
Are you wondering if you could
create your own NFT? As mentioned before, get your digital wallet first. Then
go to your desired marketplace. Connect your wallet with the marketplace. You
will see a Create option. When you click the create button, you will be
directed to a detailed form, where you will need to upload your file and fill in the details. After finishing the formalities, your NFT will be ready.
However, the process is not
completely free. You will have to pay the Gas fee and service fee.
NFT Marketplaces:
Now that we have covered the
basics of non-fungible tokens, let’s talk about the marketplaces where all the
actions happen. There is a range of markets for NFTs. Some focus on artworks,
some focus on gaming, and some focus on sports. You should choose your market
according to your needs. Here is a list of top NFT marketplaces –
Opensea:
Opensea is the largest NFT
marketplace on the internet. It was established in 2017. Currently, it boasts of
having more than 101k users and 477k collections. This platform has a range of
products including Arts, Domain Names, Trading Cards, Virtual World, Collectibles,
Sportscards, etc. It operates on two types of tokens – ERC721 and ERC1155.
Opensea supports a variety of
digital wallets such as Bitski, Fortmatic, Walletconnect, Walletlink, Dapper,
Torus, Coinbase (mobile only), etc. However, it officially recommends MetaMask. When
you visit the site, you will see a profile option in the top right corner. Don’t
worry; your profile hasn’t been created yet. Upon clicking the button, you will
be navigated to a page where you will be asked to connect your digital wallet.
Installing the MetaMask plug-in takes about 30 seconds. From there, you can fill in the formalities.
In the marketplace option, you
will see a variety of NFTs. It has two types of pricing – fixed price and
auction. You can also see rankings and numbers in the stats. Opensea runs on
Ether, so you will need to buy that cryptocurrency. Anybody can join the
platform.
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| Opensea Marketplace |
Rarible:
Rarible is another top and most popular NFT marketplace. This marketplace’s key focuses are Artworks and
Digital collectibles. The market supports a long list of cryptocurrencies. It has
two types of NFT tokens – Rari and ERC-721. The former one is Rarible’s native
token. The platform champions a decentralized user-operated governance system,
which is why it has its own Rarible governance. It rewards its most active
users with Rari. This token can only be earned through mining. Every week
Rarible distributes a portion of the total Rari to its creators and collectors
divided equally. Rarible is also a distributed network backed by Ethereum Blockchain.
Rarible is connected with digital
wallets such as Torus, Portis, Coinbase, WalletConnect, MyEtherWallet, and
Fortmatic. To submit your NFT file, you will have to click the Create button on
the top right and follow the procedure. The platform is run on Ether and it
takes a 2.5% service fee. Rarible allows its users to put their own percentage of
royalty fees. Like Opensea, Rarible is open to everybody.
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| Rarible Marketplace |
Nifty Gateway:
Nifty Gateway is another premiere
NFT marketplace. Artist Grimes sold $6 million worth of NFT on this platform. It
has collaborations with famous artists and brands. Nifty Gateway is built on
Ethereum Blockchain. The platform has terms like Nifties and Drops.
Nifties are digital assets
available on the NFT marketplace. Nifty Gateway opens its limited edition
collection once in three weeks for a specific amount of time. The specific time
is called ‘Drop’ – refers to the dropping of collections. You have to do a
routine sign-up on Nifty to start working.
SuperRare:
SuperRare is also a peer-to-peer
marketplace for NFTs. It is built on Ethereum Blockchain. SuperRare focuses on
creating unique and single-edition digital artwork. The platform markets itself
as “Instagram meets Christie’s”.
You will have to sign up on the
platform to gain access. However, as a creator, you will have to
submit a request form to get approved. SuperRare is only boarding a small
number of artists at the moment. So, posting NFTs on SupeRare is limited.
SuperRare talks about scarcity and quality. So, artists have to show a little
work to get approval. For example – proving that your identity is original,
promoting works on social media, having a consistent style, having uniqueness, and being active on the platform.
You can still buy and sell NFTs
on the platform.
SuperRare supports two digital
wallets – MetaMask and Formatic. You will have to buy Ether to trade on this
platform. It recommends Coinbase to buy Ether cryptocurrency. SuperRare charges
a 3% fee on all transactions. The platform allows 10% royalty on secondary
sales to the artists and cuts a 15% commission from primary sales.
MakersPlace:
MakersPlace is another popular
Ethereum Blockchain-based popular NFT marketplace. It was founded in 2016 in
San Francisco. MakersPlace is an invite-only platform; artists are required to
submit an application to join. It offers its artists to digitally sign and
verify their artworks. The marketplace takes a 15% commission from all trades. Creators
can set fixed prices for their assets or accept offers from buyers. MakersPlace
allows creators to issue 3 types of editions – one of a kind, a rare digital
edition (10 copies), and a limited edition (100 copies).
MakersPlace is free and open for
digital asset collectors. However, it takes a 2.5% service fee on all resales on
the platform. You will need to get a MetaMask plug-in to connect with the
marketplace; it also supports Coinbase and TrustWallet. You will have to go
through a regular sign-up process to begin your work. The platform also has a credit card and Paypal facilities for payments.
Foundation:
Remember Nyan Cat? We have
already talked about it. This decade-old meme made headlines last February and
shook the internet when it was sold for $600,000. The auction was placed on
Foundation. Another popular auction of the famous meme ‘Disaster Girl’ also took
place on this platform. This marketplace is an invite-only platform where
creators are required to be invited by the members of the community.
Foundation is run on Ethereum Blockchain
and it requires MetaMask digital wallet to connect. Invited artists can list
their NFTs for sale at a reserved price. The auction begins when the first bid
is placed. The window for an auction is 24 hours. However, if a bid is made
within the last 15 minutes, the time extends for another 15 minutes. Foundation
provides a 10% royalty to the artists.
Foundation is open to collectors.
Anyone can create a profile and start collecting digital assets.
NBA Topshot:
Sports fans have been buying
physical sports cards of their favorite teams and players forever. NBA has
brought that idea to the non-fungible market and created its own platform.
NBA Topshot is a dedicated NFT
marketplace for NBA fans to buy, sell, and trade officially licensed NBA
moments, such as video clips. It is based on Canada-based Blockchain DapperLabs.
In June 2019, NBA collaborated with NBPA (national basketball player’s
association) and DapperLabs to create the platform – Topshot.
On this platform, you will find
spectacular moments of NBA up for sale as non-fungible tokens. You will need to
sign-up to join Topshot. Official NBA is the only creator of NFTs in Topshot.
Like regular trading cards,
DapperLabs arrange them in digital packs and put them in Topshot for sale. The
prices vary in a range of matters such as the type of the star, the fan base, quality
of the highlights, etc. Users can buy in packs or individual moments from other
users.
Top listings in Topshot are as
high as $210,000. They are the highlights of superstars like Lebron James, Zion
Williams, Fred Vanvleet, Ja Morant, etc. However, not all listings cost
that much.
NBA generates revenue from the
sales while DapperLabs receives a transaction fee and players get their cut.
And, the Topshot buyers can make money through resell. Users expect to make a monumental overnight profit through resell.
Enjin:
Enjin is also a very popular NFT
market. It primarily focuses on Gaming NFTs. Enjin boasts of having more than 2
billion NFTs in its collection. It is based on Ethereum Blockchain, and it
allows anybody to join and mint coins. It follows the ERC-1155 standard for its
tokens. Enjin Coin (ENJ) is the Ethereum token of the Enjin ecosystem. It provides
a range of products such as Trading cards, Virtual world, Domains, Art, and Utility.
AtomicHub:
This platform is backed by Eosio Blockchain.
It was founded in February 2020. AtomicHub focuses on unique, original NFTs
and seeks proof of originality from the creators. This marketplace is open to
everybody. It charges a 2% service fee on all sales.
Other notable marketplaces
include - Simple Market, Known Origin, Cargo, Mintbase, Blockparty, and NFT
Showroom. Some other available NFT markets are – Cryptokitties Marketplace,
CryptoPunks Marketplace, Axie Infinity, Ethernity, Myth, Viv3, Arkane,
GhostMarket, etc.
Things you need to think about:
NFTs are mostly based on Ethereum
Blockchain. Every operation has a cost. In Ethereum, it is called a Gas Fee,
which is required to execute a transaction on the Blockchain. Users will have
to pay the fee. Sometimes the fee is very high due to high demand and
fluctuation.
NFTs also have skeptics who think
it is only a fad and will disappear in the future. But, the enthusiasts believe it
is the beginning of a new era and will evolve more in the future.
At this point, you should have an
overall idea about non-fungible tokens. If you are considering joining the
trend, you should also be ready to embrace it. Happy NFT journey.
What do you think of NFT? Share your thoughts.
Read More: NFT Gold Rush
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