NFT, or Non-Fungible Tokens, are like crypto-collectibles. They are one of the newest types of crypto tokens that have been gaining a lot of attention recently.
The first thing you should understand is what NFTs are not.
- They are not like your typical cryptocurrency token.
- They never intend to be a currency or a way to pay for things. T
- They are also not like ERC-20 tokens, which may be more familiar to some people.
Why are they called NFTs? They derive their name from “fungibility.” Fungibility refers to whether you can exchange one cryptocurrency for another cryptocurrency without any loss in value.
For instance, if I were to hand you a U.S. dollar bill and you gave me four quarters in return, you’d likely not consider the trade equitable, because the dollar bill holds more value than the quarters.
Cryptocurrencies that have been designed as a payment method generally have low fungibilities due to this (low) exchange value.
NFTs are designed to be held by an individual as an asset and not intended to be exchanged like traditional cryptocurrencies.
Or at least they’re not supposed to be exchanged on cryptocurrency exchanges (although some will trade an NFT that is part of a larger ecosystem). While they can be transferred on exchanges, they are not intended for that purpose.
In this article, I’ll cover why are nfts worth so much, is NFT a scam, and the best marketplace for NFTs.
Why Are NFTs Worth So Much?
How do NFTs gain value? NFT (Non-Fungible tokens) are an entirely new type of digital asset that are unique in that each single token is completely separate and distinct from one another. Inherently valuable, these tokens can easily be tracked, and each can only be owned by one user at any given time.
The biggest crypto kitties have been sold for more than $100,000. These cats appeared on the network at the peak of the hype, when the community was going crazy, trading millions of dollars in tokens daily and enabling viral growth.
One of the exciting things about non-fungible tokens (NFTs) is that they have an intrinsic value, whether they are being used in games or exchanged on a market. Users can own and trade unique assets.
Non-fungible tokens are different from cryptocurrencies such as Bitcoin or Ether in that they represent something unique and can only be owned by one person at a time. Therefore, when a NFT is transferred to another user, it ceases to exist for the original user and is newly minted for the new user, which creates scarcity.
Fungibility is a simple concept that can be explained with an example:
Let’s say you sent $100 to an online friend through PayPal. Later on, that friend used that same $100 to pay for dinner at a restaurant. In this case, the $100 PayPal payment was fungible. The owner swapped $100 from your account to his, then back to yours again. And so long as you trust PayPal and your friend not to screw you over, the payment was still worth $100 in both directions!
One week later, your friend takes the $100 you sent him and buys a used gaming controller on eBay. A week after that, he uses that same $100 to buy a new laptop on Craigslist from Craigslist Jeff himself.
In this case, all of the items purchased were unique (no repeats!), but the value of that $100 is the same no matter what it was used for because PayPal recognizes it as the same $100 value every time.
Is NFT a Scam?
NFT is NOT a scam. You might think that NFT is a scam but I am here to prove to you why it is not.
- First of all, the founder of NFT is an academic person and he will never commit a crime like scamming someone. The fact that this project has an official youtube channel and people post reviews on it is proof that this project is alive, which means that it is not going to disappear under the radar and take everyone’s money.
- Secondly, NFT is created for people who are tired of scammy projects and want to trade in a safe and legal way. Of course, you can become a victim here if you don’t do your research before investing but that is true for any other project.
The crypto market is still developing. There are lots of investment scams in the market, everyone should pay attention to it. The lack of regulatory oversight has led to a number of allegations of fraud and security issues associated with certain coins.
The perfect scenario for an NFT-based marketplace is something that’s hyper passionate, really niche and really focused on gaming. It’s a very specific audience and something that’s very easy to monetize through affiliate marketing.
Why Should You Buy a Non Fungible Token?
The Internet is a Wild West when it comes to digital property. The Internet was originally built on top of the TCP/IP protocol stack, which provided no way for individuals to own digital assets. This made sense at the time since the Internet itself was originally conceived of as a means of sharing files and information, but as the web evolved, things changed.
One can own a car (or some other physical property) without owning the roads that it drives on, so why not own digital assets without needing to own the underlying technology?
To solve this problem, people started to create new protocols which enabled individuals to own digital assets in a decentralized manner. ERC-20 is just one example of such a protocol.
Most of the projects that are being done on the Ethereum blockchain layer right now are what we call “non fungible tokens”.
These projects are building some sort of decentralized application / game where you generally earn your “digital dollars” by doing some sort of work. It’s very similar in programming terms to how you earn money in Animal Crossing by catching bugs, planting flowers and fish, etc.
The hype around non-fungible tokens is real. I’ve heard people talking about how great they are and how they’ll be an alternative to the backpacks in Fortnite. There are a lot of examples of interesting applications for NFTs.
I’m a huge believer in how the use of Non Fungible Tokens (NFTs) will change and shape the world. NFTs allow us to represent digital objects that are owned, traded, or even simply desired.
What is the Future of NFT Tokens?
The future of NFT tokens is bright. We will continue to add more functionality to our platform. The future of NFTs is that they will become ERC20 tokens that will be compatible with all ERC-20 wallets and be used to create a limitless amount of digital scarcity on the Ethereum blockchain.
With the amount of innovation that is happening in the gaming & digital collectibles space, it’s a fair question. I have experience working on blockchain products that were able to bridge mainstream adoption with token use cases (such as CryptoKitties and GIFTO as an example).
Why Binance is the Best NFTs Marketplace?
NFTs are revolutionizing blockchain technology. They can be used to represent virtual goods, digital assets and non-fungible tokens. They can be used as a tokenized representation of real-world assets like CryptoKitties and Digibyte. We are excited about the recent additions to our Binance family – NFT.com, NFT Market and Jade Platform.
Binance has always been about making blockchain and cryptocurrency accessible for everyone. In the past year, we have made incredible strides, offering more trading pairs than any other exchange, a fiat-to-crypto exchange in Singapore, a DEX (Binance Chain) with cross-chain support, and much more.
They have also become a leader in the blockchain industry for social impact projects such as our Blockchain Charity Foundation..
They are also excited to release their crypto collectibles platform, Binance Decentralized Exchange (DEX), which will showcase a wide variety of non-fungible tokens (NFTs). The NFT market is an exciting new frontier in blockchain technology, something that we believe will become an important part of everyday life.
In addition to making it easy to buy and sell NFTs through their web platform, Binance Chain, NFT owners will also be able to use their favorite wallet to add their newly acquired NFTs to their collection.
Why Binance is the best NFTs marketplace? No other company offers these features:
- Low fees. The standard trading fee is 0.1% on NFTs.
- Settling orders in only three seconds. This minimizes the risk of chargebacks.
- More options for trading NFTs. Users can trade any NFT without first converting it to ERC20 and back.
- A secure, reliable digital asset exchange. Binance has never been hacked and never lost user funds.
And, most importantly, their tokenomics model incentivizes users with discounts, cashback and other benefits through their token, the Binance Coin (BNB).
This is the only crypto asset exchange that gives you more – much more – as it grows in value. There are no hidden surprises like negative voting rights or airdrops to existing investors; just real, measurable value and growth opportunities that you can see every day on the charts in front of you.
Leveraging their disruptive technology, world-leading security and trusted platform gives them the opportunity to dominate this emerging market. Get started with Binance to enter the NFTs family.