What Is a NFT?
NFT stands for non-fungible token.
NFT are tokens that contain digital art, website domains, and other digital goods.
NFTs use blockchain technology like cryptocurrency to record ownership of these digital assets.
Because ownership is recorded in the blockchain, they are non-fungible.
No matter if people copy or download your NFT image, they can’t own it unless they buy it on the blockchain.
The blockchain uses computers around the globe to democratically record and verify transactions. So ownership is safe in the blockchain.
NFT Crypto Art Explained
The first introduction I got to NFTs was from Gary Vaynerchuck. He recently started a new venture called “VeeFriends.” And if you think it sounds stupid, let me tell you I’m in the same boat.
The first NFT I ever saw looked like this. In fact this is the exact image.
This silly picture of a crudely drawn elephant over a diamond-ish background can’t possibly be worth $26,000, right? Well it sold! Don’t believe me? Check here.
It sold for 6.6600 Ethereum, which I assume at the time was worth $26,000. At the time of writing this article 6.6600 Ethereum is worth $19,000.
On Veefriends you can find plenty of unimpressive digital art being sold as NFTs for thousands of dollars each.
These pieces of digital art (if you can call them art) were hand drawn by Gary Vaynerchuck. I probably don’t have to point this out, but he’s not an artist. He is a hot-shot digital marketer. But he is obviously not a digital artist.
Digital Art NFTs Are Only Partially About the Art
The actual art is not necessarily the most important part about an NFT, even for crypto art NFTs.
Really there are 3 important factors for NFT crypto art.
- History of the NFT
Scarcity. Why buy something you can copy/paste, download, and view whenever you want on the internet?
Same reason original pieces of art are more valuable than copies.
Same reason precious metals are precious.
They are rare. Sometimes there is only one in the world. One-of-a-kind collectibles can be treasures.
NFTs are a gold rush for many people. They speculate that unique, original NFTs will grow in value due to their scarcity.
Utility. All of the above mentioned Veefriends NFTs by Gary Vaynerchuck automatically include exclusive admission to “VeeCon 2022, 2023, 2024.” VeeCon is a event created by Gary Vaynerchuck about NFTs and Veefriends.
So that weights into the decision-making. Not only is it a collectible, a asset that you own, and a “investment” (a speculative investment), but also it is a ticket to a literal event.
Other utility uses for NFTs:
- Trading cards that are part of a trading card video game
- Video game in-game items
- Certificate of Ownership for physical items
History of the NFT. The general buzz around a NFT matters.
- What collection is it part of?
- Who created it?
- Who’s the artist?
- What’s the story?
- Who previously owned it?
A compelling brand name, a inspiring company/artist story, and meaningful references can all build value.
So while the crypto, digital art is the first striking part of a digital art NFT, it’s not the only (or even the most important) factor.
For example, the CryptoPunks collection is at the top of the leaderboard on OpenSea right now.
This “CryptoPunk” just sold for 20.25 ETH ($56,468).
Clearly this is not a artistic masterpiece.
But there’s more than just the surface for CryptoPunk NFTs.
CryptoPunks was the first Ethereum-based NFT experiment. According to OpenSea, they are likely the best candidates to become true digital antiques. CryptoPunk is a strong brand. Many early adopters know these as the first big digital art NFT collections.
Now, on to where you can create NFTs.
NFT Minting Platforms
Creating NFTs is calledd “minting.” So platforms that enable us to make NFTs are called minting platforms.
NFT minting platforms have popped up to democratize NFT creation.
The first according to themselves was OpenSea. And I’ll swing back to write about them way more.
Back to OpenSea. OpenSea has a big claim to the minting platform and marketplace market.
OpenSea NFT Marketplace
OpenSea is the world’s first and largest NFT marketplace.
Here are some of their numbers.
How to Make a NFT
OpenSea allows you to make NFTs free.
They also offer “lazy minting.” Minting that isn’t put on the blockchain until the first purchase happens. This simplifies the process.
First off, set up an account. You might need to create a new crypto wallet or use one you already have.
To make a NFT, you need to create a collection. Hover over your profile. Then click collection. There you can find where to create a collection. Upload a logo (or don’t) and name your new collection. Simple as that!
I just created a OpenSea collection called CuddlyVampire. Then I created my first NFT pictured below.
It is very simple to create a NFT on OpenSea. Simply upload a image, video, audio or 3D model.
For more information here is OpenSea’s guide to creating crypto art NFTs.
How Much Are the Start Up Costs to Sell on OpenSea?
Just know, it can cost between $50 – $200 to begin to sell on OpenSea. OpenSea is powerless to lower this because the price is to create a personal trading smart contract for your wallet. The price is determined by the congestion on Ethereum’s blockchain.