What are NFTs?
NFTs are non-fungible tokens. Unlike cryptocurrencies, which are identical in usability and value, NFTs are unique, cannot be replicated, and are impossible to counterfeit. This is possible thanks to a secure digital ledger known as the blockchain, or technical framework and way to track ownership. Anything digital can be minted into a certified-unique NFT, from online pictures and screenshots to videos and even sports trading cards. Jack Dorsey’s first-ever Tweet was turned into an NFT in 2021 that sold for $2.9 million. Other popular NFTs include Taco Bell GIFs, the Nyan Cat meme, Metaverse items and property, 3D fashion models, and more. The average cost can range from $3 to $150 million.
How Do You Produce and Sell an NFT?
Let’s say you want to sell an NFT version of a photograph you own. You need to use a do-it-yourself service, such as Opensea or Rarible, to complete the task of creating and selling it. Once an NFT is minted, the identity of the artist or the original issuer is noted in the blockchain contract. This means that both will benefit from future resales. The possibilities for NFTs are limited only by the creator's imagination and the buying market. You can almost think of them as gift certificates for the digital world.
How Do I Buy an NFT?
There are many marketplaces to buy and sell NFTs. Depending on your choice, you’ll be able to purchase different art or collectibles. Most marketplaces accept Ethereum-based cryptocurrency tokens as payment.
The NFT marketplace is expected to reach $35 billion in sales by the end of 2022 and is estimated to double that by 2025. Creators and buyers curious about investment should be aware of the taxes that accompany NFT sales and look to marketplaces and the IRS for guidance on adequately managing this part of transactions.
Tre Goldsborough, Huumanize Intern
Stay tuned for our very own Huumanize NFT roll-out in the coming months. Want to create your own as well? We’re an agency of digital media & design experts who collaborate with businesses of all sizes to perfect their brand presence and optimize their digital kingdoms. Connect with us, and let’s explore how we can help your business grow!