Do NFTs make good investment
The existence of digital arts about bored-looking apes fetching millions in value have boggled people’s minds. Simple yet charming, these artworks, or better known as NFTs, have taken the world by storm.
One of the most compelling features of the NFT is the fact that these digital assets can appreciate greatly in value over time, making them very lucrative investments. This attribute has catapulted many NFT investors and traders alike into millionaire status.
According to CNBC, Brittany Pierre made over $109,000 selling NFTs of her photography as well as flipping other NFTs. This is a stark contrast to her previous lifestyle, struggling to pay rents or even to afford groceries and bus fare.
On the other hand, Amrit Pal Singh earned over $1 million selling 57 NFTs of his artwork in just the span of about nine months. He started delving into NFT after his friend mentioned that one of his past projects, called Toy Faces, would work well as NFTs.
To delve deeper into the world of NFT, one must also understand the concept of an NFT. Also known as cryptographic assets on a blockchain, NFTs come alongside unique identification codes and metadata that differentiate themselves from each other.
This digital asset could represent real-world objects like art, or even video, music and in-game items. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
Unlike cryptocurrencies such as Bitcoin, they cannot be traded or exchanged at equivalency. However, cryptocurrencies are identical to each other, and thus, are able to serve as a medium for commercial transactions.
Back to the subject of investing in NFT, the value of an NFT is highly subjective, unlike shares which can be easily predicted. Take for example, the privileges that are oftentimes attached to an NFT. The community and social value of an NFT is often overlooked, although these are usually huge determinants in their appreciation.
For example, holding the Bored Ape Yacht Club NFT (BAYC) gives you access to an exclusive Discord server with some celebrity owners, as well as free perks like additional NFTs or tokens from the BAYC ApeCoin.
Speaking of perks and privileges, a new star NFT has appeared on OpenSea, and it is no other than the Hitchhiker of Star (HOS). Those who hold this NFT can become the exclusive Citizens of HyperNation, an utopian nation on the virtual realm which champions human rights, personal sovereignty and freedom. The value of the HOS NFT also requires mention if we are to appreciate NFTs as investment vehicles.
Just within 24 hours of launch on Opensea, the HOS NFT registered a floor price of 0.49 Ethereum, giving early holders a profit margin of over 300% the original value. The swift appreciation rate marks the HOS NFT as among some of the fastest NFTs on the free market to achieve stardom. It is also a testimony that NFTs have huge potential to replace or at least, become a substitute to traditional investment vehicles.
Another factor that gives NFTs compounding value is the commitment of the creators to roadmap activities. Essentially, the creators will share a map on how they will release new NFTs, continue to attract attention to the community as well as develop new value. Hence those who are interested to invest in NFTs will pay close attention to all this information before making an economic decision.
The HOS NFT fulfills all the criteria of an exemplary NFT, both in terms of value generation as well as future privileges as HyperNation continues to grow as a robust virtual nation.