NFTs have made significant progress in the past year. The technique is mainly used to sell digital works of art. Manners Magazine talks to Berry Vrolijk, Doopiecash’s crypto expert, who spent three months working on NFTs.
With inflation and falling or even negative interest rates, the popularity of investing increases. In this section, we discuss with investors and investors who earn their living in the investment world. This article should not be construed as financial advice. Do you want to start investing? Then it is important that you first ask yourself these four questions.
What are NFTs?
Although NFTs are popular, it is still unclear to many what they entail. The acronym stands for Non-Fungible Token: a non-replaceable and irreplaceable digital certificate of ownership. It is a contract on the blockchain of a cryptocurrency. Currently, it is widely used for digital artwork, but there are many uses for the technique.
Art in the form of NFTs
The NFT world is still new to Berry Vrolijk. “We’ve been working hard on NFTs for three months. We bought some NFTs and looked at what it does, how it works, and how it moves.”
“We bought a Mutant Monkey for 6.7 Ethereum (almost 20,000 euros) and we sold it for 25 Ethereum (more than 74,500 euros). That is a positive result. But we have also invested in or monitored many projects that did not has not become anything, ”says Berry.
It’s a cowboy world
“It’s still a cowboy world at the moment. (..) Making an NFT is pretty simple. That’s why it’s such a dangerous market,” says Berry from experience. “We bought an NFT that was a derivative of a type of monkey. The Discord – a major social media – had 300,000 followers. So we thought it was a well-known and hyped project. ”
The most common NFT scams and how to spot them
“When the 10,000 NFTs went on sale, fewer than 5,000 were sold. In the end, there were 200,000 bots – fake accounts – in Discord. The developers do not hear from them anymore, and then you know we did not do very well. , “says Berry.
Do not make the mistake yourself
But what can you learn from this? “It’s smart to buy an NFT from an artist you know or are known for. It is not a guarantee that something will be worth more, but you know for sure that it is a work of art. ”
“There are also projects where real artists translate art into NFTs. Well-known artists have a ‘bluechip’ (verification mark / blue tick). Then you have the certainty that it really is a work of art and not some random object of someone trying to empty your pockets, “says Berry.
Good works of art are also a risk. “Anything new, or anything you can invest in, is fun. However, we will always add a warning. You must always be aware of the risks. (..) I still see NFTs as something speculative, because in the long run it still needs to prove itself. It’s a big jungle. There are gems in that jungle, but you need to know how to find your way. There are things that could become more true in the future. (..) For example, it may be that an NFT of the Cryptopunks will be very worthwhile in 20 years because it is one of the first NFTs. But it might as well be worth nothing. ”
Very based on hype
“I think it’s a ‘hypecycle’, and eventually the NFT craze will subside. Still, I think projects like Cryptopunks and the Bored Ape Yacht Club – the founders – are able to hold on to their value to a certain degree and may grow in popularity, ”says Berry.
Investing in Whiskey or Wine: What is a Better Investment?
So why invest so much in speculative NFTs? “Art by artists with blue chips (‘good’ NFTs) is for sale from a few hundred euros,” says Berry. In addition to the fact that an NFT in itself costs money, you need to take into account ‘Gas Fees’. These are transaction costs that you pay when buying and selling an NFT. How much it is is very different from which cryptocurrency you use.
Despite the sometimes high costs, “the return you can achieve is huge. But a lot of return also means a lot of risk,” Berry concludes.
Have you seen an error? Mail os. We are grateful to you.