Dealing with the main reasons why people should at least consider taking an interest in the NFT market, we could cite data mainly concerning 2021.
OpenSea, in fact, has published very interesting data in this regard. The marketplace that is seeing its traffic increase more than others showed its valuation: $1.5 billion.
Now it should come as no surprise, at least to those who have from the outset grasped the extraordinary importance of NFTs, that the same platform did not have in the following year a considerable but even exaggerated increase: 13 billion.
What has characterized, unfortunately, the NFT environment has always been skepticism.
A state not supported by the data apparently.
That is why it might be useful to know the reasons for buying an NFT; to begin to dissolve uncertainties often based on untrue beliefs in favor of real data.
Supporting the artist
Among the main main motivations we mention artist support.
In addition to the main feature of the NFT ecosystem starting with the most important element, which is the relationship between artist and community, artist support has been the most powerful element of attraction for artists.
Thanks to the new paradigm that NFTs have brought to the way art of any kind is created, many artists have been able to manage their work themselves by being able to derive more meritocratic gains from it.
Too often, in fact, artists were blocked by auction houses or record labels that effectively carved out large slices of profit at the expense of the artist.
This way of producing art has relegated the artist to the sole position of creation without allowing him, in many cases, to dispose of what was being created. In this situation, the artist, in addition to the inability to dispose of his art, does not receive adequate compensation or at least compensation that would allow him to continue working and, above all, progress.
This paradigm has seen, therefore, the most imperative power always in the hands of the multinational companies with which artists sign for their collaborations.
All this with NFT has been turned upside down.
Flipping is the term that comes closest to what artists have discovered through the marketing of their art through NFTs.
Indeed, in this market, the artist is central; in fact, he or she plays a crucial role not only in the creation of his or her own lens.
The most important plus brought by NFTs is the possibility of being able to sell one’s art independently.
By minting NFTs on a blockchain and then putting them up for sale, the artist has complete and direct control over what his or her art is generating at that moment and thereafter.
Through so-called royalties, the artist can also earn a percentage on secondary and subsequent sales of the NFT.
Needless to say, such individual and market management breaks down many of the industry barriers to entry that the conventional art market still presents today.
This is why many artists continue unabated to migrate to NFT platforms as their main source of income.
Buy collectible NFTs
The collectibles market has inspired much of what happens with NFTs.
Just think of what has long been happening, for example, with collections of rare baseball cards in the United States.
Collecting in many cases transcends the cost incurred in making the object but is based on what that object represents, the values it portrays or the message it gives.
In this respect, NFTs follow the same path.
In the large NFT ecosystem there are collections that because of their rarity and beauty become unique and unrepeatable, consequently highly sought after.
With this approach, the temptation to build one’s own collection of rare NFTs is very strong.
In fact, many investors have started from the very beginning to create their own collections of rare NFTs.
Based on this interest, creators have continued to push by reducing more and more the production of NFTs helping to make them increasingly rare and increasing their value accordingly Bored Ape Yacht Club is an example.
Indeed, in that collection many NFTs possess their own rarity encapsulated in characteristic traits unique to each NFT.
Creating one’s own collection represents a medium-term investment that is expected to be unprecedented both in terms of the numbers it could generate and the ease with which this is made possible.
Investment
Speaking of investments, that of rarity is not the only way.
In many cases one can invest in something that can increase in value over time.
In this way one approaches conventional art somewhat, as one seeks to unearth those works that can explode in valuations attracting users over time.
There are not a few cases where the same artist created his own work and waited for his community and following to grow over time before publishing it and putting it up for auction.
The famous example that is cited in such cases is that of Mike Winkelmann who managed to sell his own Everydays: The First 5000 Days for $69 million.
Numbers such as these should be one of the many guarantees for the NFT market, but on the other hand it must be remembered that the NFT sector also represents an economic sector subject to the fluctuations inherent in the open market in any case.
In such environments it is natural to create a fairly volatile market where the attention of the public and investors plays a central role.
he ease with which it is possible to trade in the NFT market should never be misrepresented as actually simplifying the success possible in the market.
P2E Gamens and Utility
Another area where NFTs have essentially implemented a real revolution is in gaming and utilities.
After completely conquering the gaming industry with P2E i.e. play-to-earn, NFTs have innovated the gaming market in every facet.
Every little gaming dynamic has been permeated by the possibility of being able to interact through NFTs.
With tokens, in fact, it is now possible to acquire useful accessories for the game, different skins and everything needed to pass a given level.
While NFTs have seen entirely encouraging numbers, having conquered the video game industry represents a victory for this technology as it automatically encompasses a huge swath of users.
While on the one hand we find NFTs dedicated to P2E gaming, on the other hand we find so-called utility NFTs.
Wanting to start from a broader and more general context, it is possible to say that these NFTs are used to interact with a platform.
Thus, they are not NFTs to be used because they represent a work of art or a piece of music.
They are tokens to invest in order to, for example, participate in an event such as community NFTs or a sporting event such as fantasy NFTs.
Among the reasons to invest in NFTs, then, is to participate in special events that take advantage of this technology for the login and authentication stages.
Joining a Community
The real hallmark of NFT technology is that of community.
Through this technology much of the work an artist has to do relies on creating a community of users who are passionate about what will be the next work or creation.
The purchase of an artist’s NFT is not an end in itself, therefore, it represents a distinctive mark of belonging. Membership can be exploited in a positive way by creators.
Everyone who makes a purchase of an NFT created by a particular artist can have priority access to the next work over those who have not purchased anything previously.
This is why Bored Ape Yacht Club wanted to create an exclusive community in all respects in that anyone who has purchased an NFT automatically has access to a number of very interesting exclusive services.
The first of these benefits is precisely access to a restricted community of members.
Beyond this, users have commercial ownership of the NFT, i.e., full use in the marketplace; membership in a community also gives access to exclusive events and more extensive sharing on future creations.
Conclusions
Entering the NFT world today represents an investment with a high probability of success.
By starting with the right steps and doing the proper thinking, buying an NFT can turn out to be the first of many transactions that can gradually lead to more and more interesting experiences.
Whether it is to support one’s favorite artist, to begin investing in the sector most adjacent to one’s interests, or because of the attraction and the numbers this sector is making from quarter to quarter, getting started with an NFT will undoubtedly be a never-before-seen experience.