NFT guide: understanding non-fungible tokens and how to buy them

What is an NFT?

NFT stands for non-fungible token, which is a digital object that possesses a unique characteristic. These virtual assets serve as proof of ownership for various items such as images, videos, audio files, GIFs, and more.

Non-fungible tokens represent a new model of interacting with culture. NFT enthusiasts consider them exclusive collectible objects that hold significant cultural value. For others, NFTs are viewed as a profitable investment opportunity. This approach involves reselling NFTs at higher prices.

When purchasing such an asset, the owner confirms their right to ownership. While it was possible to acquire cultural objects, including digital ones, prior to NFTs, the ownership rights were not established in any formal way. Today, this information is stored and accessible on blockchain platforms.

Where can you buy and sell NFTs?

The most popular non-fungible tokens are typically related to art and entertainment, such as paintings, photographs, videos, music, and memes.

NFTs only exist in digital form on servers. Technically, objects are transformed into non-fungible tokens on specialized platforms that deal with these types of assets. One of the largest marketplaces is OpenSea. Rarible and Mintable are also popular among users. These platforms function as NFT marketplaces and NFT studios at the same time.

How to mint your own NFT?

Virtual objects are sold in marketplaces. Therefore, users need to set up an electronic wallet, such as MetaMask or Ledger. Afterwards, they must synchronize their wallet with one of the chosen platforms.

NFTs cannot be divided into smaller parts like cryptocurrencies, nor can they be exchanged for identical tokens. In this sense, such assets possess the qualities of a unique object.

Entertainment and Art

One of the early appearances of NFTs in the crypto market was through CryptoKitties. The company DapperLabs, behind an online game where users could breed digital cats and then sell them, pioneered this trend. One of the CryptoKitties was sold for $170,000, and the game became a sensation, attracting attention from the press and new fans to Ethereum (ETH).

In the world of art, graphic designer Mike Winkelmann, also known as Beeple, made a groundbreaking deal. He announced on his Twitter page the sale of 21 artworks. Each piece was tokenized as an NFT and came with documentary proof of authenticity. During the auction, the first 10 works sold for approximately $900,000. Beeple generated a total of $3.5 million from the sale.

However, the artist achieved something incredible. His subsequent work, "Everydays: The First 5000 Days," which featured a collage of all the images he had posted online since 2007, was sold for $69.3 million. The identity of the buyer of the most expensive NFT remains unknown.

Business

Burger King recently launched the Real Meals NFT campaign, where tokens are being given away. The fast-food chain partnered with the NFT marketplace Sweet. It is reported that QR codes will be printed on 6 million food packages, providing access to virtual collectible items.

Burger King will give away souvenirs with autographs from famous performers Nelly, Anitta, and LILHUDDY. Customers will also have the opportunity to have a phone conversation with the stars. Additionally, there will be a giveaway of 3D Burger King collectible itemsand free Whoppers.

Media

TIME magazine released 4,600 NFTs that grant users "unlimited access" to the website until 2023. The collection, titled "Building a Better Future," was created by over 40 artists from around the world.

Each token was priced at 0.1 ETH, approximately $300. The NFTs sold out within minutes despite the significantly increased fees in the ETH network.

The sale of TIME's NFTs was conducted blind, meaning buyers did not have information about which specific tokens they were purchasing. One of the most expensive NFTs was sold for 69 ETH, equivalent to over $215,000.