NFT - Non-Fungible Tokens
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NFT - Non-Fungible Tokens

NFT - Explain Like I'm 5

  • Non Fungible Tokens (NFT) is the ability to create 100% unique, digital 'finger prints' that can be bought, sold, or transferred.
  • Basically, NFT = "hey I own this (asset) and I can prove it with the unique token I have in my crypto wallet"
  • Instant Authentication / proof of ownership.
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NFT Frequently Asked Questions:

Q: What do I actually own when I buy an NFT?

A: You get a 100% unique token in your wallet that represents whatever asset you chose to purchase (and can be verified). This token can be transferred, sold, etc...

Q: But can't a .jpeg file I buy be copied / pasted etc...?

A: Well, the mona lisa is "copied and pasted" every day, and hung in homes, offices, etc... But copy / paste doesn't mean they own the Mona Lisa. Value is in ownership. Which NFTs can prove very easily.

Q: How can the REAL artist prove that a copy is a FAKE?

A: this is what makes NFTs revolutionary. Every time an artist mints an NFT, it is permanently timestamped on the a public database (blockchain), and cannot be reversed or deleted. So pointing your finger to your "time stamp" is all you need.

Q: Can only GIFs and images be sold as NFTs? What about physical items?

A: Surprisingly, NFTs have no bounds! Check out these phyiscal Uniswap socks that released as an NFT. At the time of the screenshot, they were going for $115,000!

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Where to buy NFTs?

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Just like collectible baseball cards, NFTs can be purchased from an artist, organization's website, or a public marketplace (OpenSea) when they are created (i.e Crypto Punks)

NFT Marketplaces:

How To Purchase NFTs?

👉 Check out our guide on purchasing NFTs here: Buying NFTs

How To Mint and Sell NFTs?

👉 Check out our guide on minting and selling NFTs here: Sell NFTs

NFT Royalty: Crypto Punks

There are 2 NFT projects that basically revolutionized and inspired the creation of the NFT token itself which we now know was Ethereum's 'ERC-721 token.'

  • These 2 projects are crypto kitties and crypto punks.

Basically, when you buy an NFT, you're buying a unique token, which represents the item you have purchased ownership of. (can be any asset not just art)

The main catalyst of NFT's:

Crypto Punks - Highest sale in the millions $$$

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What?

  • Crypto punks are a set of 10,000 unique pixel art avatars which have different attributes.
  • Attribute examples: Glasses, beard, male, female, smile, frown, etc...
  • These 10,000 punks got randomly mixed with different attributes, some rarer than others.
  • in 2017, each of the 10,000 punks were redeemable for FREE by LarvaLabs.
  • Now, since no more will ever be made, they are being re-sold for insane amounts.

Why so expensive?

  • Punks are seen as the first NFT. ("NFT Royalty"), which gives them historic value.
  • 10,000 punks means very limited supply, and demand is only INCREASING.
  • Punks are showing to be a great Store of Value for Ethereum holders. Like real art.

Where can I buy punks?

  • On the organization's website that created them: LarvaLabs
  • On NFT marketplaces such as (OpenSea)

Popular NFT Collections

Collections

NFT Flipping Opportunities Everywhere:

Watch this story of Mark Cuban's NFT saga, and how an experiment turned into a lot of money:

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BE CAREFUL: NFT is a revolutionary movement in ownership and the market is being saturated with NFT art. Many NFTs will NOT be a good investment in the long term. Purchase what you can afford to not resell.
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