Instructions for NFT: what are non-fungible tokens, how to sell them and from whom to buy

The popularity of NFT continues to gain momentum. In the first half of the year alone, NFT’s turnover exceeded $2.5 billion. This is 180 times more than last year. We’ve put together a short guide on the topic for those looking to understand how NFT works.

What is an NFT

NFT, a non-fungible token, is a digital object that has a unique characteristic. A virtual object is proof of ownership of assets such as pictures, videos, audio, gifs, etc.

Non-fungible tokens are a new model of interaction with culture. NFT fans regard them as exceptional collectibles that are of immense value in a cultural context. And for others, non-fungible tokens are one of the options for a profitable investment. This approach provides for further resale of NFTs at a higher cost.

By purchasing such an asset, its owner confirms ownership. Of course, various cultural objects, including digital ones, could be purchased before the emerging of NFT. However, ownership was not secured in any way. Today, this data is stored in the public domain on blockchain platforms.

Where to buy and sell NFT

Perhaps the most popular non-fungible tokens are objects from the world of art and entertainment, for example, paintings, photographs, videos, music, memes.

NFTs only exist digitally on servers. Technically, objects are transformed into non-fungible tokens on special platforms that work with this type of asset. One of the largest platforms is OpenSea. Rarible and Mintable are also popular among users. The platforms have the functions of a non-fungible token marketplace and at the same time are NFT workshops.

How to issue your own non-fungible token

Virtual objects are sold on the air. This means the user will need to open an electronic wallet, for example, MetaMask or Ledger. After that, the wallet needs to be synchronized with one of the selected platforms.

NFT cannot be divided into parts like cryptocurrency. You also won’t be able to change non-fungible tokens for similar ones. In this sense, such assets have the qualities of a unique object.

Entertainment and arts

One of the first NFTs to appear on the crypto market was CryptoKitties. The pioneer was DapperLabs, behind an online game that could raise digital cats and then sell them. One of the crypto kittens was bought for $170,000, and the game became a sensation that attracted the attention of the press and new fans to ETH.

In the art world, the market was shocked by the deal of graphic designer Mike Winkelmann, working under the pseudonym Beeple. He tweeted about the sale of 21 paintings. All art objects were tokenized in the form of NFT and had documentary evidence of their authenticity. During the auction, the first 10 works were sold for about $ 00,000. And the total amount that Beeple raised was $3.5 million.

However, the artist did something incredible. His follow-up work “Everydays: The First 5000 Days”, a collage of all the paintings that Winckelmann has posted online since 2007, was sold for $69.3 million. It is unknown who became the owner of the most expensive NFT.

Business

Burger King recently launched the Real Meals NFT campaign, which raffles off tokens. The NFT marketplace Sweet has become a partner of the fast-food chain. It is reported that QR codes will be printed on 6 million food packages, providing access to virtual collectibles.

Burger King will hand out autographed souvenirs to its visitors by renowned artists Nelly, Anitta and LILHUDDY. Customers will also be able to chat with the stars by phone. In addition, there will be a draw for 3D Burger King collectible objects and free Whoppers.

Media

TIME has released 4.6 thousand NFTs, with the help of which users received “unlimited access” until 2023 to the website of the oldest American magazine. The collection was created under the slogan Building a Better Future, and it is based on the work of more than 40 artists from different parts of the world.

Each of the tokens cost 0.1 ETH, which is about $ 300. NFTs were sold out literally in a matter of minutes against the backdrop of greatly increased commissions on the ETH network.

The sale of tokens issued by TIME was carried out blindly — the buyers did not have information about which tokens they were purchasing. One of the most expensive NFTs went for 69 ETH, which is more than $215,000.