They burned a Banksy piece. Eminem created original beats. Eli Manning sold the rights to Hail Mary pass to David Tyree.
These are great moments, great pieces of art especially for those who are into street painting or music or sports.
They are also all worth millions of dollars, not as events, but as NFTs.
So, naturally, the question is, ‘how do you make money in NFTs?’
#1. Owning Digital Works of Art
When you think of art, you usually think of something physical– paintings, books, sculptures… but, these days, art is going digital. Paintings can be rendered directly on the computer. Many movies are shot digitally. Poetry and music are recorded and distributed digitally.
All of these are digital works of art.
In this format, owning the master or original version is where the money’s at. They’re as valuable as a painting or a sculpture. The only difference is that it is in a digital form. And no, it’s not the same as right clicking an image and saving it as a jpeg or png because it’s in the blockchain. The master can only have one version, the same way there is only one of Da Vinci’s Mona Lisa but thousands of reproductions.
On March 11th, Christie’s, one of the most renowned auction houses in the world, sold an NFT work of art for $69 million. It was the first time Christie’s auctioned a fully digital artwork.
The piece entitled “Everydays: The First 5000 Days” was created by a digital artist Mike Winkelmann, better known as Beeple.
#2 – Licensed Collectibles
Brands that were already selling physical collectibles, such as trading cards, can now also sell the same thing in a digital form.
Since NFTs have provable rarity, the price of a digital trading card can be much higher than the price of its physical counterpart.
The first NFT sports cards project allowed people to trade licensed cards of football players, but recently the NBA has also launched its NFT cards collection.
But sports cards are just one example of what NFTs can be used for. Any physical collectible can also be turned into a Non-Fungible Token. While physical trading cards are easily damageable, NFTs can be securely stored on the blockchain, and they will never lose quality.
#3 – NFT Video Games
Gamers are already known to spend fortunes on virtual items. World of Warcraft gold, Call of Duty loot boxes or Counter Strike skins—all of these markets are already worth billions.
If any major video game company decides to sell in-game items as NFTs, the impact of such a decision on both gaming and blockchain ecosystems would be tremendous.
It’s also worth noting that NFT video game developers are among the most ambitious Non-Fungible Token creators, and NFT in-game items might push the evolution of Non-Fungible Technology forward.
Compared to simple digital trading cards, or even to more interactive NFTs like virtual works of art, in-game NFTs are by far the most advanced. Non-Fungible Tokens utilized in video games can be very complex, fully interactive, and they can change over time, for example, by being upgraded or by leveling up along with the player’s character.
NFTs are still young. The technology will evolve and art will evolve. And that is good news for investors. Right now, most NFTs are still images, but their potential is vast. Get in early before NFTs explode and sweep the whole art community.