MR_RAMY

TL;DR

Non-fungible tokens (NFTs) can be used to digitally represent nearly anything, including videos, event tickets, and virtual real estate. Still, perhaps the most prominent NFT use case is digital art. Many marketplaces allow aspiring digital artists to sell their work, which contributes to more people getting interested in becoming NFT artists. Below are a few tips on how you can digitize and monetize your artwork to become an NFT artist on platforms such as the Binance NFT Marketplace.

Introduction

NFTs are a unique class of digital assets that can represent digital or real-world items. Each NFT has a unique token ID that makes them easily distinguishable. Unlike Bitcoin and other fungible assets, NFTs are non-fungible, meaning they aren’t interchangeable with one another.

Thanks to NFTs’ unique features, artists can benefit when they create and sell their art in the form of NFTs. Apart from being able to easily establish proof of ownership and authenticity, NFTs allow artists to earn royalties more conveniently, without the need for an agency or manager.

What is NFT art?

In short, NFT art refers to any piece of art that is created as a digital token in a blockchain network. These tokens are called non-fungible tokens or NFTs. NFTs are typically created using smart contracts that adhere to specific standards. One of the most popular standards is Ethereum’s ERC-721, which requires all tokens to possess unique token IDs to ensure non-fungibility.

Due to their non-fungibility, NFTs can represent ownership and create financial value for digital artworks. In a world that has seen fake art scandals shock entire nations, NFT art can help empower artists who worry about art forgery. Through blockchain technology, artists can easily prove they are the creator of a particular piece of art.

Among the different types of NFTs in the crypto market today, perhaps the most common one is NFT art. You may have heard of a famous NFT artist, Beeple, who made waves with his NFT art sale that fetched a whopping $69 million. Grimes, a multi-hyphenate artist, reportedly sold $6 million worth of digital art as NFTs. Indeed, NFT artwork can be sold for millions apiece in NFT art auctions that resemble traditional ones.

Why do people become NFT artists?

Because NFT art is digital, exhibitions are no longer constrained to physical spaces like museums and art galleries, allowing artists to show off their creations anywhere in the world. This can enable artists’ work to transcend geographical boundaries and gain worldwide recognition.

Apart from venturing into a modern, new art format, another important reason for creating art via NFTs is that you can easily verify their authenticity. Due to the unique ID of each NFT artwork and the immutability of the blockchain, the ownership and authenticity of every NFT artwork can be preserved.

NFT artists would also be pleased to know that their art can be exhibited and sold without going through any third parties, allowing them to avoid middleman fees that can often eat into their earnings.

Some platforms like Binance NFT Marketplace allow artists to earn passive income via royalty fees. This means that NFT creators can earn a percentage of every NFT sale, even when it happens between users on the secondary market.

Finally, the beauty of the NFT art scene is that anyone can create and sell their artwork. Unlike traditional art galleries, many NFT marketplaces are inclusive. This environment gives budding artists the chance to be independent and make a living out of their passion.

Downsides of being an NFT artist

While its popularity has been increasing, NFTs are still not considered a mainstream art form. As it’s still early days, established NFT artists may not be able to find keen buyers as quickly as traditional buyers from art galleries. 

Furthermore, because anyone can be an NFT creator, the marketplace where you intend to sell your artwork may be saturated compared to exclusive art galleries with handpicked art. You may need to build your fanbase and establish value behind your artwork to increase your chances of succeeding as an NFT artist. Read our blog about How To Become A Creator In The Web3 Space for more tips on marketing your NFT creations.

How to be an NFT artist

It’s easy to get started on your NFT art journey:

Step 1: Begin creating art pieces. You can find inspiration in other NFT art collections out there.

Step 2: Go to a platform like Binance NFT Marketplace and upload your digital art to the blockchain.

Step 3: You’re all set to start selling your NFT art.

Minting and selling NFT art on Binance NFT Marketplace

Verified users can create an NFT or a collection of NFTs on Binance Marketplace through a process called minting. Note that you need at least two followers on your Binance NFT user profile before you can start minting. 

Step 1: Log into your account on the Binance NFT Marketplace and click [Create].

Step 2: Enter the details of your new collection. This will include the collection name, a brief description, a logo and banner image, as well as a symbol. You can also choose to bind a wallet to your artwork so you can prove ownership on NFT marketplaces.

Step 3: Read and agree to the Binance NFT Minting Rules and Terms of Service and click [Create].

For more information, please view the Binance NFT Sales Settlement Postponement Policy for Standard NFT Collections.

Step 4: You will receive an email notification once your collection is ready.

Step 5: To view your NFT art collection, go to [User Center] - [Created]. There, you can also edit certain details of your collection.

For a more detailed guide or a video tutorial, visit How to Create Your NFT on Binance NFT Marketplace FAQ.

Closing thoughts

If you’re thinking about monetizing your art, consider converting your work into NFTs. Not only is it easy to do on Binance NFT Marketplace, but it also gives you the opportunity to enter the NFT art scene – even if you’re not an established artist yet.

Risk Warning: Digital asset prices are subject to high market risk and price volatility. The value of your investment can go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.

TL;DR

Beeple is an American graphic designer and world-famous digital artist. His NFT work has been sold in a legacy art house, and he is among the three most valuable living artists. Many believe Beeple proved that art can also be digital and doesn't necessarily have to have physical properties. Besides his work being aesthetically impressive to many, various other developments of the NFT space and market structural aspects might also have their role in growing his popularity.

Introduction

Beeple has brought lots of attention to non-fungible tokens (NFTs) through his digital art. Therefore he can be regarded as an important figure in the adoption of NFTs. Moreover, his creations are a living example of one of the NFT use cases, which can spark other creative professionals to the possibility of doing the same.

Who is Beeple?

Beeple, or Mike Winkelmann by his real name, is an American graphic designer and digital artist. Before he gained fame in NFT art, his work was displayed in concerts by famous personalities such as Justin Bieber, Nicki Minaj, and Childish Gambino.

His fame didn't come from a long career in traditional art galleries or particular expertise in non-fungible tokens (NFTs). His way to NFTs was more of a sudden experiment as more and more people recommended he try the new way to publish art. Today, Beeple has over 2 million Instagram followers and is among the three most valuable living artists.

Beeple's NFT art often uses references to politicians, pop-cultural icons, and the like to satirize current world events and create interpretations of modern politics and culture. Interestingly, he found a way to attract the attention of the traditional art sector with his animated art NFTs while providing a way to express visual political and social commentary.

What made Beeple famous?

Beeple started selling NFTs in February 2020. His earliest drops surprised the art and technology worlds, with digital art sales reaching tens of thousands of dollars. One of the first NFT pieces that Beeple sold is called Crossroad. It had been designed to change according to the result of the November 2020 U.S. presidential election. That blockchain-registered art piece sold for 66,666.66 US dollars and then resold for 6.7 million.

Beeple's big moment came when the legacy auction house Christie's announced his NFT art piece for auction, making it the first major auction house to sell a purely digital NFT piece of art. In addition, this was the first time Christie's accepted ether as a payment method.

The art piece was called Everydays – The First 5000 Days and was sold for over 69 million U.S. dollars. It looks like an assemblage of colorful pixels but, in reality, comprises 5,000 individual images, which Beeple created each day for over 13 years.

Beeple's rise to prominence may be due to his timing. He entered the NFT space just when it started gaining momentum. Another systemic reason could be the massive socio-economic changes in the world like the COVID-19 epidemic. As a result, people started spending more time on digital devices, working from home, and getting attracted to new digital applications more easily.

Beeple selling the Everydays NFT happened during the boom cycle of NFTs. Nevertheless, as with any hype cycle, the NFT craze wave has subsequently subsided.

How Beeple changed people’s perception of NFTs

Beeple has been attracting a lot of mainstream attention to digital art through various successful NFT projects. For example, Christie's public announcement about selling digital art showed how NFTs could become part of what has been considered elite culture. It also proved to the broader audience that art can also be digital and doesn't have to have physical properties. Also, it raised public awareness of the combination of art and blockchain technology and the new possibilities it allows.

Many artists started considering NFTs during the pandemic because they enabled artists to make a living without performing physically. In addition, they offer a new way to demonstrate their creative pursuit. Not just small independent artists but celebrities such as Paris Hilton, Edward Snowden, and Eminem started publishing NFT projects.

For example, Snoop Dogg announced his first NFT collection called "A Journey with the Dogg" to demonstrate his early memories in the form of NFT art. In addition, Canadian musician Grimes created an NFT art collection of 10 pieces that explore futuristic worlds and earned millions in a matter of seconds.

With all the big names entering the space, Beeple's work may have been pivotal for NFTs coming to the mainstream. Firstly, he became one of the world’s highest-paid artists and showed that creators could earn without relying on traditional publishers and media. Secondly, his debut art pieces demonstrated art styles that were possible only in digital form. Finally, he had been creating art long before NFTs became a thing, his digital pivot thus demonstrating that this new space is not only about money but also discovering new ways for artists to showcase their work.

What’s next for NFTs

Beeple became world-famous because of his NFT art. However, the scarcity and uniqueness of NFTs make them a good fit for various other use cases such as gaming, music, and finance. For example, gaming NFTs enable users to prove the authenticity of unique in-game items like guns and plots of land. In addition, the so-called play-to-earn NFT games allow users to generate income by playing them.

Also, similar to art, it's possible to attach audio to an NFT to create a collectible piece of music. It is widely known that only a minority of musicians can make enough from their music to make a living, and NFTs hold the potential to make the music industry’s business model more equitable. NFTs could solve this problem with blockchain-based streaming platforms or blockchain royalty tracking.

An NFT can also act as an entrance ticket to concerts and events, creating a secondary market for NFTs based on the access they provide.

Despite the NFT market and the attendant exuberance somewhat slowing down in 2022, the NFT space continues to develop and reinvent itself, and we will likely see many new iterations and use cases for NFTs.

In fact, even you can become an NFT creator. If you are already an artist or creator of some sort, NFTs could enable you to earn royalties without needing an agency or manager. In addition, unlike traditional art galleries, many NFT marketplaces let everyone participate. Blockchain technology makes NFTs inclusive. Also, as NFTs are digital, you can show off your creations anywhere in the world. And, like Beeple, perhaps you could gain recognition overnight by publishing your art for everyone to see.

Closing thoughts

Beeple has showcased that NFTs are a viable medium to distribute and own art. In addition to digital art, NFTs offer a way to improve current industries such as gaming, music, and finance. The NFT ecosystem will likely witness new projects with unique use cases and approaches to generating value.

TL;DR

Soulbound Tokens (SBTs) are digital identity tokens that represent the traits, features, and achievements that make up a person or entity. SBTs are issued by “Souls,” which represent blockchain accounts or wallets, and cannot be transferred. 

Introduction

Soulbound Tokens (SBT) is a concept proposed in May 2022 by Ethereum cofounder Vitalik Buterin, lawyer Puja Ohlhaver, and E. Glen Weyl, an economist and social technologist.

The whitepaper, entitled “Decentralized Society: Finding Web3’s Soul,” lays out the foundation of a fully-decentralized society (DeSoc) governed by its users and how Soulbound tokens (SBTs) can function as the credentials we use in everyday life. 

What are SBTs?

Soulbound tokens (SBTs) are non-transferable tokens representing a person’s identity using blockchain technology. This could include medical records, work history, and any type of information that makes up a person or entity. The wallets that hold or issue these records are called “Souls.”

People could have multiple wallets (or Souls) representing different parts of their lives. For example, someone could have a “Credentials Soul” for their work history and a “Medical Soul” for their health records. Souls and SBTs would allow people to build a verifiable, digital Web3 reputation based on their past actions and experiences.

On the other hand, Souls can represent an entity that allocates SBTs. For example, companies can be Souls, issuing SBTs to each employee. A digital country club could issue SBTs to verify membership status.

The logic behind soulbound originates from the popular online game World of Warcraft. 

Players cannot sell or transfer soulbound items. Once picked up, soulbound items are forever “bound” to the player’s “soul.”

Now, imagine this idea but applied to non-fungible tokens (NFTs). Today, most NFTs are ownership certificates for digital art or collectibles, such as Bored Ape Yacht Club. People will buy, trade, or show off NFTs as a symbol of status and wealth.

SBTs aim to turn the NFT concept into something beyond money and bragging rights, a token that is both one-of-a-kind and non-transferable. While NFTs represent assets and property, an SBT represents a person or entity’s reputation. And unlike an NFT, SBTs hold zero monetary value and cannot be traded once issued to someone’s wallet. 

How can SBTs be used?

SBTs have a wide range of potential use cases. Here are some examples that could potentially find use in everyday life.

1. Education history – When people graduate from university, they receive a certificate proving completion of the required courses. The university could be a Soul issuing the SBTs, and the students would be Souls on the receiving end. The SBT would store the student’s credentials, proving they hold the relevant qualifications and are a member of the university. Simply put, the SBT would function as proof of attendance.

2. Job applications – In theory, job applicants could submit all their prior work history and professional certificates using official SBTs issued by previous companies and institutions. The SBTs would function as proof of skill certificates.

3. Health records – Switching doctors or healthcare providers could be accelerated using an SBT that holds a person’s medical records. Hypothetically, the SBT would replace the often slow process of filling out paperwork, verifying your medical history, and going back and forth with someone on the phone.

How do SBTs work in Web3?

Trust is one of the main challenges affecting the Web3 industry. How can you trust a person’s reputation in a system designed to be trustless? Let’s use lending money as an example. Similar to traditional bank credit scores, SBTs could track a user’s DeFi borrowing history as well as other metrics that determine their risk profile.

SBTs are also a proposed alternative for decentralized autonomous organization (DAO) voting. Instead of the current governance model, which is based on how many tokens a member holds, DAOs could issue SBTs that assign voting power based on users’ interactions with the community. This model would prioritize voting power for the most dedicated users with a strong reputation.

Besides creating a reputation-based voting system, SBTs may potentially improve the integrity of DAO voting — namely, defending against Sybil attacks — one of the biggest threats to the current DAO governance model.

During a Sybil attack, an individual or a group of bad actors overthrow a DAO by purchasing the majority of governance tokens. Those with majority voting power can manipulate voting proposals and steer the project’s direction in their favor. The public and verifiable nature of SBTs could help detect and prevent bad actors from entering the DAO and, in turn, deter corruption and Sybil attacks from occurring. 

What are examples of SBTs in action?

As of August 2022, SBTs only exist on paper. Glen Weyl, one of the co-authors who contributed to the original SBT whitepaper, believes there will be early SBT use cases by the end of 2022.

Binance also recently announced its own SBT called Binance Account Bound (BAB). The BAB token is non-transferable, has no monetary value, and is the first-ever SBT issued on the BNB Chain. BAB aims to tackle identity verification issues in Web3, serving as a digital verification tool for Binance users who have completed KYC.

In addition to the Binance ecosystem, third-party protocols will be able to use BAB tokens to airdrop NFTs, prevent bot activity, and facilitate DAO governance voting, among other use cases.

Closing thoughts

SBTs have become a hot topic in Web3. In theory, SBTs could allow people to establish their own digital reputation and assess someone else’s on the blockchain. It remains to be seen if an SBT can function as Web3’s version of the “identity card.”

TL;DR

NFTs are unique digital collectibles on the blockchain. This feature makes them suitable to use in games as representations as characters, consumables, and other tradeable items.

NFT games have become popular in the Game-fi world as a way to earn income. You can sell your in-game NFTs to other collectors and players and even earn tokens with play-to-earn models.

When moving your gaming NFTs, make sure you transfer them to a compatible wallet. Also, look out for common scams whenever you send the NFT to an NFT marketplace or other user. Finally, read the rules carefully of any NFT game you play to see any chance of loss.

NFT games are mainly present on Ethereum and BNB Smart Chain (BSC). Some offer a battling experience with collectible characters like CryptoBlades and Axie Infinity, and others use collectible cards like Sorare.

Binance also offers NFT Mystery Boxes, which give holders the chance to own NFTs of varying rarity. These Boxes are included in Collections partnered with NFT games.


Introduction

From their beginnings with the CryptoKitties craze, NFT games have developed and begun to offer play-to-earn models. Game-Fi, as it's become known, mixes the worlds of finance and gaming, providing players opportunities to earn income as they play. You no longer need to only rely on winning, finding, or breeding a scarce collectible worth thousands of dollars. Players can now choose to experiment with multiple gaming models in various themes aside from collectible animals.


What are NFTs?

A Non-Fungible Token (NFT) is a digital, cryptographic token on the blockchain representing a unique item. An NFT has many use cases. It could be a digital asset in a game, a collectible piece of crypto art, or even a real-world object like real estate. NFTs have solved the long-standing issue of creating decentralized digital collectibility and ownership in a "copy-paste" world.

An NFT is non-fungible. This property means each token is unique and cannot be swapped identically for another token ever. You can trade 1 BTC (bitcoin) for another 1 BTC equal in every single way. With an NFT, this is impossible, even with NFT art released in a series with multiple versions. In this case, each NFT's metadata will differ, just like you would have in a numbered series of prints.


How do NFT games work?

NFT games are different from just holding crypto-collectibles in your wallet. An NFT game will use NFTs in its rules, mechanisms, and player interactions. For example, a game could represent your unique character or avatar as an NFT. Digital items you find while playing the game could also be NFTs. You can then swap or trade your NFTs with other players for profit. A newer, play-to-earn model also allows you to generate income from NFT games which we'll discuss more later.

So how do you take NFTs and technically implement them into a game environment? To swap, create, and implement NFTs within a game, developers create smart contracts that make up the rules for the NFTs used. Smart contracts are self-executing pieces of code stored on a blockchain.

CryptoKitties, for example, has a small number of main contracts that structure the game. The most famous is their geneScience contract that determines the random mechanics that generate new cats. The game developers initially kept its code secret. Interested players even created tools to analyze the odds of particular traits in cats turning up. With this information, players could optimize their chances of developing a rare breed worth more money.


What are play-to-earn NFT games?

Play-to-earn NFT games give users the chance to generate an income stream through playing. Typically, a player is rewarded with tokens and occasionally NFTs, earning more the longer they play. The tokens earned are often needed as part of the game's crafting process.

The token method is usually the more stable of the two, as tokens can be earned steadily through play while NFT drops are more chance-based. Play-to-earn has been especially popular with users in low-income countries as an alternative or boost to fixed income or social security.

Axie Infinity has become one of the most well-known play-to-earn games. The game requires an initial investment to purchase three Axies, or you can receive a free Scholarship from another player. Once you have a Starter Team and begin completing tasks and challenges, you can earn Smooth Love Potion (SLP), an ERC-20 token tradeable on exchanges.

Breeders use SLP to breed new Axies, creating an economy for the item. Axie Infinity became particularly popular in the Philippines, where many users started to live off its play-to-earn model. Many players are making between $200 to $1000 (USD) per month, and some even more than that depending on the market price and time invested.


What are in-game NFTs?

In-game NFTs offer another way for you to generate an income through playing NFT games. Rather than earning a fungible ERC-20 token like SLP in Axie Infinity or SKILLS in CryptoBlades, you earn NFTs that represent collectible items. This gameplay mechanism is the traditional way of generating income with NFT games. Items will vary in their worth based on their cosmetics, rarity, or utility based in the game.

CryptoKitties is one example of a game that relies only on the collectibility of in-game NFTs. There is no way to keep playing and earn a steady income without the element of chance. Most newer NFT games offer a mixture of both play-to-earn and in-game NFTs. 


How do NFT games make money?

The amount of money you can earn playing an NFT game will depend on the specific game's mechanics and market demand. The money you make will come from other users who value the NFTs or cryptocurrencies earned in the game. You will need to cash out by selling your goods on a market, exchange, or auction house. With NFT games, value is derived either from the NFT or token's collectability or in-game utility. These two factors also lead to speculation.


Can I lose money playing NFT games?

It's possible to lose money playing NFT games. The exact amount depends on the type of game you're playing, its mechanics, and the value of the NFTs you're handling. Losing money doesn't necessarily mean you're being scammed. As NFTs are speculative and their value depends on what people place on them, your losses also depend on market forces. Like any crypto investment, only spend what you can afford to lose.


Can I lose my NFTs?

With the value some NFTs are worth, it's a common fear to lose them while playing a game or interacting with the blockchain. Whether you've purchased your NFTs or earned them in-game, you need to make sure you keep them secure. In short, it's possible to lose your NFTs if you aren't careful. However, your chances of losing them are minimal if you follow the best practices we'll outline later.

There are few possible ways you might lose your NFT:

You attempt to transfer it from your wallet to another that doesn't support your NFT's token standard.

You are the victim of a scam or fraud, and you send your NFT to a scammer.

You give a malicious smart contract permission to access your wallet, and it takes your NFT.

You lose it as part of the rules of a game.

Apart from the last, you can avoid the situations above with some improved knowledge of NFTS, blockchain technology, and scams in general. Just like you wouldn't use PayPal or internet banking without understanding how to use it correctly, the same goes for NFTs. To make sure you don't lose your NFTs, you should:

Confirm that if you are sending your NFT to another wallet, you aren't falling for a scam. You can see the most common ones in our 5 Common Cryptocurrency Scams and How to Avoid Them guide.

Understand the types of tokens and blockchains your wallet or platform supports. ERC-721 and ERC-1155 are the most common NFT token protocols for Ethereum, and BEP-721 and BEP-1155 are the most common for BNB Smart Chain (BSC). Always make sure you're sending them to the correct address and never assume their compatibility.

Only interact with smart contracts from reputable projects you can trust. If you permit a smart contract to interact with your wallet, be aware of the risk that the contract could remove your funds.

Check carefully the rules of the game you’re playing. Some NFT games allow you to trade with other users or use NFT consumables. These could be items or potions for example. Familiarize yourself with the game to avoid any unwanted surprises.


Popular NFT games

There's a wide range of NFT games available, with the majority on BSC and Ethereum. Some offer more traditional video game experiences, and others depend mainly on the collectibility of NFTs. 

Axie Infinity

As we mentioned before, Axie Infinity follows a model similar to Pokemon with collectible creatures and battles. Axie Infinity is on the Ethereum blockchain and provides users a potential income based on trading Small Love Potions (SLP), Axies, and Axie Infinity Shards (AXS). SLP and AXS are both available to trade on Binance.


Sorare

Sorare is a fantasy football game with collectible, tradeable soccer players from real life. You create a five-player soccer team using either free cards for beginner players or purchasing tokenized cards. You can earn points to level up for every game you win, goal you score, or other events you complete.


Gods Unchained

Gods Unchained is a tradeable NFT card game on Ethereum similar to Magic The Gathering or Hearthstone. Gamers build decks with different powers and strengths to combat other players. As you win, you find in-game items to use or sell. If you win Ranked games, you can begin to earn Flux that lets you craft powerful NFT cards. You can then take your profits by selling them or reinvest in new cards and continue the process.


Binance NFT Collections

Binance NFT Marketplace provides an NFT gaming experience with NFT Mystery Boxes and Collection partnerships. These partnerships range from digital artists to NFT games. Every purchasable Mystery Box contains a random NFT of a different rarity from the Collection. You can either open the box to reveal the NFT or sell it without opening it.


NFT Collections contain several NFTs and Mystery Boxes centered around a theme or project. Some of the most popular so far have been Game-fi Mystery Box Collections. Let's take a look at a few:

1. The MOBOX Collection. MOBOX is a gaming platform on BSC combining DeFi yield farming with NFTs. The Collection involves NFT Mystery boxes containing MOMO NFTs with randomized hashing power in the MOBOX platform. The more hashing power the NFT has, the more valuable the MOMO is in MOBOX's games.

2. The My Neighbour Alice Collection. My Neighbour Alice is a virtual world-building game featuring NFT cosmetic items. While the game assets contained in the Collection's Mystery Boxes are cosmetic only, users still value them and give them worth in the secondary market.


Closing thoughts

NFT gaming takes digital collectibles and creates rules for players to interact with each other's NFTs. While some people value NFTs for their collectibility, others want them for their utility. Many NFT games work like a trading card game, but not everyone who collects the cards intends to play. Game-fi has now created new NFT gaming economies that have changed how people can earn using NFTs. To make money, it's not just about luck and collecting anymore; it's also about playing too.

TL;DR

NFTs are tokenized, collectible items valued for their uniqueness and rarity, popular on BNB Chain and Ethereum. The value of NFTs relies on their authenticity and scarcity, so it can be helpful to take a closer look at the token on a blockchain explorer.

NFTs have more use cases than just crypto art, and BNB Chain now has an innovative non-fungible token ecosystem. Due to the recent popularity of NFTs in the news and huge selling prices, it’s easy to see similarities with the 2017 ICO craze. But the two are, in fact, very different things. 

To understand more, we cover the basics of NFTs based on common misconceptions and frequently asked questions.


Introduction

When it comes to non-fungible tokens (NFTs), art and collectibles are never too far behind. These unique tokens are making waves with huge sales of graphic designers and visual artists. Artist Beeple is one of the most popular examples. His NFT called "Everydays - The First 5000 Days" was auctioned for roughly $69 million.

NFTs are hugely popular, but the topic goes much deeper than just newspaper headlines. Understanding and exploring the world of NFTs is the next step to take if you want to dig a bit deeper. There are many places to find them, use cases to look at, and even misconceptions to clear up.



What is an NFT?

An NFT is a cryptoasset representing something unique and collectible using blockchain technology. The NFT could be in demand because it has been created by a famous artist or composed by a world-class musician. The token could also be helpful in a game or wanted to complete a collection.

You may have already heard of NBA Top Shot, a digital collectible basketball card game. The cards work just like physical trading cards do, but their authenticity is guaranteed through blockchain technology. Some cards are rarer than others, and each has a different value.

Simply put, a non-fungible token cannot be faked or copied. If we look at the definition of fungibility, we can learn a bit more about what makes an NFT special:

Fungibility is an asset’s ability to be interchangeable with assets of the same type.

One bitcoin is equal and tradeable for another bitcoin. A #1/99 Keldon Johnson Holo Icon Top Shot card, on the other hand, is not interchangeable as only one exists.


What can I do with an NFT? Are they tradeable?

NFTs come in all shapes, sizes, and even use cases. Purely collectible digital art NFTs are pretty limited in what you can do with them. You can trade them, of course, but an NFT of a photo isn’t much different from a regular print in terms of utility.

Still, some NFTs have actual uses in games, like the famous CryptoKitties on the Ethereum blockchain. In this case, a collectible cat can breed to pass its traits down onto new cats.


NFTs are commonly used by financial platforms too. There is a massive market for PancakeSwap’s NFTs that are artistic and convertible into cryptocurrency. This unique combination means that people can speculate on the future price of the cashable amount. 

These NFTs all have in common the ability to trade them for different digital assets. This means you can buy or sell NFTs using ETH, BNB or other cryptocurrencies. Still, each piece of NFT is unique (i.e., they are not interchangeable).



How is the rarity and value of an NFT determined?

Determining how much an NFT is worth depends on what it represents. When it comes to crypto art, it’s quite similar to any other kind of art. We need to think about who created it, the artistic value of the piece, and how in-demand it might be from other collectors.

If an NFT is part of a limited run or series, specific numbers are often more valuable than others. We usually see #1 as desirable and other numbers people find collectible like #13 or #7. Value and rarity depend on a combination of factors, like the ones mentioned above. You can see from these Top Shot NFTs how their ranking affects the price.


For game-based NFTs, there may be financial benefits from specific NFT items or creatures. If they provide you with an extra $100 in staking rewards, then it’s going to be worth at least $100 without taking into account its artistic value.

PancakeSwap’s NFTs are slightly different. Some of their tokens can be converted into CAKE - the platform’s cryptocurrency. So if, for example, your cuddly rabbit can give you 10 CAKE and the price of CAKE is $20 (USD) per token, then your NFT is worth at least $200.



Where can I find NFTs?

If you want to explore NFTs on offer, there are a few different places to start looking. NFT marketplaces have a variety of non-fungible tokens on sale, from both famous artists and amateurs. There are loads out there to choose from, but some of the biggest are OpenSea for Ethereum-based NFTs and Treasureland or BakerySwap for BNB Chain-based NFTs.


The number of marketplaces keeps growing, and some are more specialized than others. If you are interested in buying something from a famous artist, make sure to check and see how genuine the marketplace is. You can also find NFTs by playing blockchain games or participating in decentralized finance (DeFi) projects.


What are the main NFT projects on BNB Chain?

BNB Chain benefits from a healthy NFT community on the blockchain, and it’s not all art and marketplaces either. There are NFT games and even collectibles with staking or financial benefits.

As mentioned before, BakerySwap and Treasureland are two of the largest NFT exchanges. BakerySwap also allows you to create NFTs quickly and for a reasonable price. When it comes to the art and creative side of NFTs, these are great places to start.

There are also blockchain games like Battle Pets and DeFi protocols experimenting with NFTs in more financial ways. PancakeSwap takes the number one spot for traded NFTs on Treasureland, making it a massive project for NFT usage. You can find out more info on these NFT projects by following the link.


Are NFTs the new ICO?

In short, no. While there are some slight similarities in the money NFTs raise and their recent hype and popularity, that is as far as it goes. An initial coin offering (ICO) is a method used for project fundraising by selling project tokens. It rose to popularity around 2017 and became infamous for the number of scams and failed projects taking part.

It’s easy to see why some people might get the idea that NFTs are similar to ICOs. Recently these digital collectibles have sold for millions of dollars. They are also all over the news and seen as an opportunity to make some “easy money” with crypto. These two points are where the similarities between the two end. Still, it’s crucial that you do your own research before risking your funds because not all projects are legit.



How do you verify the authenticity of an NFT?

Proving that your NFT is legitimate can be a bit tricky, depending on what you’re looking for. No doubt people are uploading other artist’s work and pretending to be them. In this case, you would have to get in touch with the artist to confirm they are selling NFTs of their work. 

An NFT’s creator should supply you with some kind of identifier for you to check. Most of the work will involve looking at your NFT on a blockchain explorer such as BscScan. When it comes to blockchain, we take a “don’t trust, verify” approach.

Helpful information could include the minting date and the wallet address that minted the NFT. You could also use the transaction history ID to see if your NFT matches up. This method is better than just checking the image or file associated with your collectible. If we look at the digital artist Beeple’s recent sale, Christie’s has given the token ID, token contract, and wallet address for validation.


There is sometimes a URL to the file or an IPFS link to verify its underlying content. Both, however, can be used by someone else when creating a fake token. In most cases, you’re best off checking with the creator first.



Closing thoughts

When it comes to NFTs, new use cases and developments are constantly coming out. It’s easy to forget that the technology is as recent as 2017 and still in its infancy. Before you start investing money into these tokens, make sure you understand precisely what you’re getting into and how to use them. It’s easy to just think of NFTs as art, but there is a whole world of projects using them in different ways.

TL;DR

A piece of metaverse real estate is an NFT that provides the holder with digital proof of ownership over land on a metaverse platform. The land can, in most cases, be built upon to create experiences that lend themselves to advertising, socializing, marketing, entertainment, and more. The value of each plot of land depends on these factors, as well as overall market sentiment, collectibility, and platform popularity.

Introduction

The concept of the metaverse and digital real estate go hand in hand. But like many crypto trends, media coverage hasn't provided sufficient clarity. Just as it is with any other investment, it’s crucial to grasp the idea of metaverse real estate before purchasing any digital land. Compared to purely artistic non-fungible tokens (NFTs), metaverse real estate is simpler to comprehend due to its plain-to-see utility and use cases.

How does real estate exist in the metaverse?

For newcomers to the metaverse, digital real estate can sound like an oxymoron. The idea of physical property and real estate are firmly intertwined. However, while blockchain-based real estate in the metaverse may not be physical, it offers the same — or perhaps even stronger — ownership rights over a plot of (digital) land. Land ownership in a game, community, or other platform is represented by an (NFT).

As NFTs are non-fungible (i.e., each one is unique) and can securely prove digital ownership, they act much like property deeds in digital real estate. An NFT can be traded, bought, and sold according to its market value, which is derived from a range of factors.

Your metaverse real estate might be in a popular area with lots of digital foot traffic, making it suitable as advertising space. Staking benefits and other utilities also boost the value of the land. The specific metaverse platform you're on will determine the value of your land.

Some metaverse platforms allow you a considerable degree of personalization, so you can build and plan your own space, events, and experiences. Examples include The Snoopverse on The Sandbox and Netflix's content on Decentraland.

The appeal of metaverse real estate

To understand the appeal of metaverse real estate, it's worth taking a step back and looking at the appeal of NFTs as a whole. On a technological level, NFTs provide legitimate digital proof of ownership. This is valuable in a world where it’s all too easy to copy files without any discernable difference.

Next, we need to look at the collectibility aspect. Humans have always been passionate about collecting items for a variety of reasons. Apart from enjoyment and collectibility, an NFT may provide tangible benefits such as increased utility on a game or platform.

Another appeal of NFTs is their investment potential, which is why many people hold them speculatively. During strong markets, NFT prices have generally followed rising market prices. NFT bull runs have, in some respects, also been a result of celebrity and media hype over the technology.

Many people purchase metaverse real estate NFTs because they follow all the abovementioned principles. JPMorgan, for example, has purchased land in Decentraland for its: 

1. Utility: They can host virtual guests on their Sandbox property and create an immersive experience.

2. Collectibility: Metaverse real estate is a highly collectible piece of pop culture that can aid marketing efforts.

3. Speculative properties: It's unlikely that JPMorgan would have bought land without expecting to either sell it for profit or increase its revenue via customer acquisition.

What can you do with metaverse real estate?

Virtual real estate is limited only by the confines of the metaverse. This gives it vast potential in our social and professional lives. Beyond investment and trading, this potential will drive long-term technology adoption. Anything the metaverse can cover can also be experienced through metaverse real estate. The exact use cases and intricacies will depend on your platform but, in theory, the sky's the limit.

Individual users, creatives, and brands can all design their own experiences based on what their specific real estate offers. Concerts, meetings, trade shows, art exhibitions, and brand launches have all taken place on plots of digital land. This makes metaverse real estate an incredibly important tool in socializing and marketing. Large brands currently experimenting with the format include:

1. HSBC: Purchased a piece of land in The Sandbox in the first quarter of 2022 with a plan to create new brand experiences.

2. Samsung: Created a virtual experience called Samsung 837X in Decentraland and hosted events such as the #RecycleUp Fashion Show.

3. The South China Morning Post: Developed a digital version of the Hong Kong Star Ferry Pier in The Sandbox.

The growth of metaverse real estate

A rapidly growing following and rising sales of metaverse real estate have caught the attention of the media, public, and investors worldwide. According to data from Influencer Marketing Hub, "the average price of a parcel in major metaverse platforms has increased from $1,265 to $12,684", demonstrating a tenfold increase from January 2021 to February 2022. McKinsey reports that "more than $120 billion has flowed into the metaverse space already in 2022 — more than double the $57 billion of 2021".

For such a young industry, the numbers can be staggering. However, rapid growth in market capitalization isn't necessarily correlated with longevity or a healthy market. We'll likely have to wait beyond this hyper-growth phase to realize the actual value of metaverse land. Nevertheless, some early investors have already benefited from the metaverse's growth. For example, a plot of land neighboring Snoop Dogg's property sold for almost half a million dollars.

What affects the price of NFT virtual land?

We’ve briefly described the appeal of NFT virtual land, but let's dive further into the three key factors that determine its price:

1. Utility: Each metaverse platform, game, or universe has a defined utility for its virtual real estate. Some allow for high levels of customization, while others provide you with in-game benefits or stat boosts. If your NFT virtual land has a particularly desirable utility, it will be able to command a higher price on the open market. 

2. Platform: As mentioned above, the platform your land is on will define its utility. Beyond that, a platform's brand name and reputation also influence the value of your NFT land. This is akin to Nike or Adidas being able to charge considerably more than a lesser-known brand with comparable product quality.

3. Speculation: The idea that your metaverse real estate may be more valuable in future is often enough to affect its price. If the whole market shares this sentiment and is bullish on metaverse land price, speculation becomes a significant factor in determining price.

Closing thoughts

The long-term adoption and uptake of metaverse real estate go beyond the hype: they rely on actual use cases and utility to succeed. Nevertheless, it's fascinating to see the journey metaverse real estate has already taken in such a short time. As the metaverse's popularity and building blocks continue to rise, so will its maturity. As such, becoming familiar with digital property is a sound idea for any potential user or investor who is interested in the future of the metaverse.