NFT art and collectibles have taken the world by storm; and celebrities, sportsmen, artists and investors are quick to cash in on its sudden popularity, which all added to the billions’ worth of NFT transactions last year. The NFT market is expected to be volatile, but it continues to grow rapidly.
NFT stands for non-fungible tokens, digital assets like music files, limited edition trading cards, visual wear and sports video clips. Through the process known as minting, each of these assets’ information is stored securely on the blockchain, and by themselves serve as a certificate of ownership. This makes NFTs impossible to duplicate and makes transactions trackable.
There are millions of NFT art and collectibles being sold on various platforms these days. However, counterfeits and copies are mixed in with them. A wise consumer or art connoisseur naturally seeks NFTs that have a certain value and would inspect it based on uniqueness, use and rarity.
There is certainly quantity in NFT marketplace, but people search for products with unique qualities. An NFT may have been verified as authentic, but what makes this particular digital asset special?
One may study or observe the actions of a seller by visiting several online marketplaces. If they sell NFT art and other collectibles in different platforms or blockchains, they may not be as unique as announced. If they sell several similar-looking NFTs, then it may not be as special. “How many like it are being produced and sold by the same team or artist?” is an important question to get an answer to.
Buyers should also examine the NFT creator or artist’s history, their past projects and the NFT they are interested in buying. Buyers should take the time to research and read the project outline of a product. Is the creator actually good at his craft? What technology was used to create it? What level of skill is necessary and what amount of time is needed to finish this type of artwork or collectible?
One may also check how the creator’s previous works fared in the market. How the NFT’s value appreciate in time, and how fast did its value rise or fall? Another factor to look at is if the product has utility and relevance. A meme may be popular enough at the moment, but one must also consider the ways one can use and profit by owning it, especially in the future.
Oftentimes, there is sufficient data available and accessible to NFT purchasers and enthusiasts that may supplement one’s perception and knowledge of an item’s rarity and value. It is important to carefully evaluate a product based on its actual merit, function and collector value, because in time all the hype or promotion abates, and a buyer is left with an NFT, which can either be valuable or not. Smart and informed decision-making is necessary when buying NFTs.
People go through great lengths just to own rare objects, whether online or in the real world. Sometimes, consumers like the bragging rights attached to owning a unique NFT. To some, it may be enough to simply buy a thing out of genuine interest, but surely it is good to be certain that the price one pays for the product is worth it.