3 Common Types of NFTs

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The rising popularity of NFTs, or non-fungible tokens, has got us all thinking: how and what. How can you own something digitally ‘unique’ when you can grab it around the internet? And what are the stuff you can buy (or sell) as NFTs? Can rocks be a type of NFT? (Spoiler alert: they can, and they are.)

But before we get to PNG files of ‘pet’ rocks sold for tens to hundreds of thousands of dollars, let’s try to get a more solid idea of what NFTs are. It technically refers to buying the exclusive ownership of digital material through cryptocurrencies. 

Imagine owning the original digital copy of the Mona Lisa, and Leonardo da Vinci maintains all the creative and intellectual rights over it. In addition, people can print it up for display. To sum it up, it means the work is exclusively for you, but anyone can see and use it. In simpler terms, you’re buying the bragging rights for a specific digital asset.

What type of assets, you might ask? Based on NFT supermarkets, it can be as cute as a Nyan Cat GIF or as questionable as an autographed tweet. Crazy? We thought so, too. Understanding NFTs can be hard to grasp in one go, so here’s a list of common NTF types that can give you a clearer idea of what’s going on.

Digital Artworks

Currently, digital art is one of the most common (and expensive!) forms of non-fungible token in the market. At first glance, it looks like a great platform to support and showcase the works of the diverse creatives of this generation. More than that, it’s also the idea of utilizing tech to form galleries of digital artworks up for sale. Think about modern fine art collections, but instead of physical paintings, you have images, video clips, drawings. You get the picture.

With the continuous evolution of NFT markets, a new breed of artform called ‘crypto art’ has been breaking billionaires’ bank accounts. Artists can put up these unique pieces for sale through non-fungible tokens stored in blockchains like Ethereum. A few NFT markets also allow artists to get a percentage of the art’s future sales as it passes on to another user. It’s a great initiative to empower artists to create and gain visibility for their works. 

On the other hand, buyers can also utilize the market since crypto art can be considered an investment now, at least for the rich. So there’s an opportunity to resell your ownership rights and gain profit based on market demand. Just imagine the return of investment for Beeple’s “EVERYDAY’S: THE FIRST 5000 DAYS”, sold for a whopping $69 million—the most valuable NFT up to date. NFTs can be the future platform of creatives, that is, with the continuous support of people who don’t mind spending millions of dollars to ‘own’ a cat meme or an ambiguous painting. 

Collectibles and Sports 

If you’re an avid collector, you might want to look into the digital equivalents of your interests in NFT markets. You’ll be surprised with the increasing number of limited edition cards, sports moments (yes!), and collectibles available online. 

One of the earliest examples of NFT collectibles is the Cryptokitties, where you get to have digital kittens with unique traits from each other. Brands defining popular culture like Marvel are also starting to hop on the non-fungible token bandwagon. Their recent NFT collection featuring Captain America was received warmly by fans. Like, who wouldn’t want to get the rare piece of Bucky Barnes’ as Cap, right?

On the other side of the spectrum are sports enthusiasts. NTFS caters to this niche by turning the intangible into collectibles in the form of sports moments. Do you want to own the best slam dunk in history? Good news: you can buy these NFT short clips for a few hundred thousand dollars! 

 With a diverse market for sports, buyers can also choose within NFTs for student-athletes of their liking. These non-fungible tokens can range from virtual sports trading cards, video clips, and so much more. It’s an open market for different niches and interests!

Music

As NFTs change the landscape of every other industry, they can also have the potential to take over the world of music. 

Usually, it would take years for musicians to reach millions of dollars when releasing an album or a single. But selling music with the exclusivity of non-fungible tokens can only take them a day to reach millions. Music figures like Grimes, who earned $5.8 million within 20 minutes of releasing a piece of NFT music, are a prime example. Because middlemen like labels and companies are out of the picture, artists can get the income return from their NFTs. These can be in the form of cryptocurrencies and royalties as their pieces of music are passed on.

With the amount of content that artists can produce for their fans, the possibilities of NFT music can be limitless. It can be a non-fungible token for an exclusive beer bong against Post Malone or a limited-edition token pass in place of an album by Kings of Leon. It’s like getting a digitally signed copy of an experience or a special vinyl produced—yet you can copy anywhere. 

Are NFTs worth it?

It’s not impossible to imagine a future where the world of technology and art is joined by blockchain advances, like NFTs. In a perfect world, this would give so many opportunities for artists to redefine creative spaces with modern crypto art or for musicians to self-produce albums and concerts. As moments turn into currencies, it can be a huge turn-around for the media and content industry to change their approach for the community too.

However, just like any cryptocurrency, NFTs can be volatile. It will always be dependent on people willing to spend millions of dollars for a cat GIF. But maybe we can achieve the best of both worlds as long as the accessibility of art is maintained.