In this comprehensive guide, we outline what NFTs are, how they can help you launch your career, and the 16 types of NFTs that have already become popular in the market today.
NFTs are the new “big thing” and have become a global innovation everyone wants to be a part of. Once a fringe movement linked with cryptocurrencies, NFTs have grabbed the globe by storm. Learning how to invest in NFTs is becoming more and more popular, and many people have begun minting NFT collections similar to our own NFT collection called 7777Sins on the blockchain using NFT marketplaces.
Because of the astronomically high sales associated with them, NFTs have gained widespread recognition. The NFT artwork by Beeple brought in a record-breaking $69 million at Christie’s. This remarkable occasion confirmed the legitimacy of NFTs and captured global interest.
Artists can “register” their work on a blockchain using NFTs, or non-fungible tokens, to turn it into a one-of-a-kind digital asset. NFT art is fundamentally altering how artists are compensated, how they can work, develop new projects, and how they can keep control of their work.
As the name would suggest, NFTs are non-fungible. That means they are each unique. If you and your friend each possessed a dollar bill from the US, you could switch them and still have the same amount of money. Bitcoin is fungible, just like dollars are. NFTs are not fungible and you can’t do “like for like” trades like that.
Creating an NFT is referred to as “minting”. This is when you upload and trade NFTs. You can trade in NFTs that you already own or mint your own NFT to sell later. Whenever you mint an NFT, you are charged a service fee, which is paid from your crypto wallet. We’ll talk about how that affects the economics of NFTs in just a few minutes.
Blockchain technology is the home of NFT tokens. Because it supports ERC-721 tokens (making it easy to create NFTs), the Ethereum blockchain is now the development chain of choice for many NFT developers.
A number of additional blockchain networks, like the Binance Smart Chain, have started supporting NFTs. Many contend that they are is better suited for purchasing and selling NFTs tokens because of the lower gas fees compared to Ethereum transactions.
NFTs, however, have other foundations outside the Ethereum blockchain. Solana, Flow, Binance Smart Chain, Cardano, EOS, WAX, Algorand, Tezos, and Tron are a few of the most well-liked blockchains that are being used to construct NFT tokens and marketplaces.
Here are the 4 aspects creators consider when choosing a chain to create NFTs on.
Ability to Create Fractional NFTs
The utility of the NFT and ability to fractionalize it and do new things with it is very important.
You are probably already aware that popular cryptocurrencies like Bitcoin and Ethereum may be divided into smaller pieces, ensuring that you don’t have to buy an entire token to access the market.
For instance, if you invest $300 and Bitcoin is trading at $30,000 per token, you will own 1% of all Bitcoin.
Many people nowadays are unaware that NFTs can also be used to break digital tokens into smaller pieces. In fact, this is one of its best qualities because it enables several people to own valuable items.
Imagine a property worth $1 million that is represented as an NFT.
The property and corresponding NFT token are only yours to own, and you decide to divide the NFT 10 ways in order to release some equity on the property. Then, you decide to keep 6 NFTs (60 percent) and sell the other 4 NFTs on the open market. If the deal is permitted by applicable contract law, each NFT buyer will possess a specific portion of the property.
An Overview of the NFT Market
We may look at how much money has changed hands recently even if forecasts on the potential total worth of the NFT market vary quite a bit depending on the source.
For instance, Bloomberg reports that NFT sales in 2021 totaled approximately $41 billion. This business may continue to grow at breakneck speeds.
The high-ticket NFTs are where the most eyeballs are. According to Yahoo Finance, Yuga Labs, the business behind the Bored Ape Yacht Club NFT collection, has been valued at $5 billion.
Yuga Labs then bought up the rights for CryptoPunks and Meebits NFTs on March 12th, 2022. By floor price and floor cap, BAYC, Punks, and Meebits are now listed as the #1, #2, and #6 most valuable NFTs, respectively.
Looking past just the luxury market, it might help to understand the market based on different types of NFTs and their characteristics:
Think of these as “one-of-a-kind”. A great example is the Famous NFT motion artist, DeeKay Motion who is working in After Effects using the Deekay tool made especially for him at Motion Design School.
He recently broke his previously recorded all-time high for a 1/1 sale.Plus, his piece “Life and Death” was collected by @cozmomedici for 310 ETH or $1M. After the sale, DeeKay and Cozomo both crafted Twitter threads to describe their emotions throughout the process.
Generative art is art that is made through the interaction of the artist and a smart contract. The automation takes an input from the artist (or even the NFT minter) and creates art.
One of the best-known examples is Invisible Friends, a much-hyped NFT collection of 5,000 animated invisible characters, hit a floor price of 12 ETH ($29K) as soon as the early access sale commenced on Feb. 23.
Prices have since settled around 9 ETH ($22,000) with over 10,000 ETH ($24M) in trading volume on OpenSea, propelling the collection to the top of the 24-hour leaderboard.
Created by Swedish artist Markus Magnusson, the project was incubated by the Random Character Collective (RCC), whose previous NFT drops include SlimHoods and MoodRollers.
The creator of SlimHoods James Currant offers an Animated Loops course where you can learn how he makes his characters. The same as Lucas Zanotto teach you how to make MoodRollers at his Get into 3D with Lucas Zanotto. Markus Magnusson instead offers 2 courses at Motion Design School, Science of Character Animation and The Magic of Walk Cycles.
For those interested, all these artists are sharing their knowledge at Motion Design School.
There are several museums and institutions that create NFTs from historical works of art, allowing new collectors to own a piece of art history. With the aid of a brand-new French start-up called LaCollection, the British Museum will sell NFTs of Hokusai’s works, including The Great Wave Off Kanagawa (1831). The sale coincides with a later this week exhibition of the Japanese artist’s work at the British Museum.
Basically, you are opening up another economic sector for your community, building it, enriching it, telling your story to the world, and giving it back to your own community.
On the Metaverse platform, you can purchase a piece of virtual land called the NFT Virtual Land. The Sandbox, Axie Infinity, and Decentraland are a few well-known NFT land initiatives. Due to their individuality and ease of establishing digital ownership, NFTs are well suited to represent land ownership. NFT land has a variety of uses, including socialising, working, playing games, and advertising.
Typically, the landowner can host online activities, display material, or benefit from a game on their property. Numerous well-known companies and figures, such as Adidas and Snoop Dogg, are starting to purchase and utilise NFT land.
According to investors and analytics companies, sales of real estate in the metaverse exceeded $500 million last year and may treble this year.
According to MetaMetric Solutions, real estate transactions on the four main metaverse platforms hit $501 million in 2021. Sales in January exceeded $85 million, according to the metaverse’s statistics source. It predicts that if sales continue at this rate, they might reach around $1 billion in 2022.
Every business in web 2.0 will be doing the migration to web 3.0. A great example is how educational platforms are performing this transition in order to jump into the future of online education.
Dual Life (Virtual and Physical)
By dragging a digital twin into the Metaverse, you may set it in the depicted environment as well as reconstruct it with live data fed from the rest of the Metaverse. In other words, it will function or act just as it would in the real world. In the Metaverse, you can simulate how a car’s attributes would operate under the same circumstances as they do right now (weather, population, other vehicles on the road).
The physical and virtual worlds should be integrated to the point that communication and interactions are fluid and have an impact on one another in the collaborative and immersive metaverse.
Collectibles (Big Sports Moments)
If you are a sports fan, you must have heard of the $4.6 million Luka Dončić rookie basketball card that was recently sold at auction. Or maybe you are just shocked to hear that the card of Dallas Mavericks forwards DeMarcus Cousins, which was currently listed for $150,000! All of this is made possible by the clever use of blockchain technology.
Digital artist Mike “Beeple” Winkelmann revealed that he has co-founded WENEW, a marketplace that will collaborate with leading brands to offer collectible moments in time across sports, entertainment, history, music, comedy, and more. WENEW is a very different kind of NFT project. Of course, there will be digital collectibles, but there will also be physical copies and other premium features with the more expensive editions.
Editor-in-chief of WENEW Ryan Schreiber told The Verge, “We’re definitely looking at this as sort of immortalising these moments of human achievement for collectors.” Schreiber, who founded the online music magazine Pitchfork, will assist in choosing the WENEW moments that become NFTs and hire writers to write feature-length pieces to go along with the collectibles.
Theoretically, it might resolve significant problems with respect to the commercialization of filmmakers’ work that they are currently facing. Indie filmmakers face a supply/demand issue, which most filmmakers are well aware of. Movies are being made at an unsustainable rate, and their value is falling by the second.
Recently, Lionsgate and Autograph agreed to collaborate on NFTs for some of their more well-known brands, including John Wick, The Hunger Games, and Mad Men.
NFTs present the market with a number of opportunities. Certainly from a business standpoint for studios and production companies. Antara, a $50 million Hollywood production, is partially supported by NFTs. Holders will receive a portion of the digital rights and earnings from box office successes.
Anthony Hopkins’ sci-fi thriller Zero Contact gets its NFT debut on Vuele with 11 blockchain-based tokens. The initial NFTs auctioned on September 24 will give 11 buyers access to the film before another 2,500 NFTs are offered in October. Vuele hopes to become a model for the future of film distribution.
Artists in the music business have picked up on NFTs’ versatility and potential in the industry, with some major artists already venturing into NFTs. And even though NFT marketplaces have been trading music NFTs for some time, some start-ups are creating platforms exclusively for, or at the very least with a focus on music, creating a competition with streaming services.
Some within the music industry have already picked up on NFTs’ versatile nature and found a way to make a profit by tokenizing music and selling it directly to consumers. EDM artists were the most significant front-runners in bringing NFTs to the music industry. 3lau set a precedent in February 2021 when he tokenized his album Ultraviolet and released it as a set of 33 NFTs, garnering $11.7 million.
Play to Earn
From pay-to-play and free-to-play, the gaming industry has advanced to earn while playing or play to earn crypto games. These unique games have native tokens supporting game economies. You buy, trade, sell, and play with these in-game currencies.
Major industry players like Ubisoft, Epic, and Electronic Arts have already started developing their own blockchain systems, which has sparked a wave of forward-thinking early adopters eager to change the fundamental rules of leisure. The goal is to develop video games that operate more like free-form, unstructured social environments than like a series of obstacles leading to a dramatic conclusion. The theory asserts that principles of real life will eventually reflect in video games.
Learn to Earn
The concept of the Learn and Earn program is pretty much what the name suggests. You should first watch videos, then take assignments, and if you qualify, you will be rewarded with a set amount of crypto.
Motion Design School provided a new vision of this concept: The process is super simple:
- Open an account in Motion Design School
- By a course and get the tokens
- Watch videos
- Complete assignments
- Participate and win in the battles
- Win rewards for the activities
- Stake your tokens
- Mint your assignments as NFTs
- Wrap them into the Metaverse
- Spend the treasury in the DAO
- Get hired by clients in the system
Event planners can use their preferred blockchain platform to create the necessary amount of NFT tickets for the ticketing system. They can program the NFTs to set a sale price or to conduct sale as an auction where buyers can place bids for tickets. Basically, you are opening up another economic sector for your community, building it, enriching it, telling your story to the world, and giving it back to your own community.
NFT-based tickets are bought directly from the ticketing firm by the customer. An NFT ticket is sent to the buyer by a ticketing database after a smart contract is triggered by payment. What options do NFT tickets provide visitors?
- They receive perks and incentives from event organizers.
- They can sell tickets for upcoming events that they cannot attend.
- They can sell rare tickets that collectors desire.
- They can store tickets safely to keep memories alive.
- They can engage in an event organizer’s community.
Activity in the NFT industry is super exciting as more and more brands hop on board.
From its globally recognized cola recipe to its ad campaigns, Coca-Cola has always been at the top of its marketing game. Their polar bears were adorable for years. The company has run giveaway ploys, created point systems, and found huge success by simply putting peoples’ names on their bottles and cans. Moreover, their ability to acquire other soft drink brands and provide clean, bottled water for most of the world has always been impressive.
Okay, everyone is talking about Taco Bell joining the NFT industry, and it can’t be avoided here either. Yes, Taco Bell has created an NFT collection (five total NFTs at the time of this article) and they have racked up some major price tags. Their “Swivel Taco”, is, in fact, priced at 100 ETH. Now, those are some expensive tacos!
Everyone likes a nice pair of Nikes (maybe except for die-hard fans of the next brand on the list) as their shoes have captivated the attention of fans for decades. In fact, their athletic clothes support fans and brands around the world, Nike has been a staple apparel brand for quite some time.
As one of the largest, most influential tech companies in the world, it would be shocking if Samsung didn’t hop into the NFT industry. The good news is that the company is delivering big time with NFT innovations and solutions for the everyday person to enjoy.
Samsung has developed the very first “TV screen-based NFT explorer and marketplace aggregator”, meaning anyone will be able to search, browse, buy, and display NFTs from their television. Furthermore, the aggregator allows users to share NFT art with other users around the world.
As a new wave of technology is just around the corner in Web3 and the Metaverse, Nike has started to test the digital waters.
Say you have decided to order a direct-to-consumer DNA testing kit in order to have a nutrition plan tailored to your genetic makeup by a private company. You also know that the latter might sell your genetic data to third parties for research purposes. But you settle for the service anyway because it’s the most accurate way to get a personalized diet at a relatively affordable price.
However, by selling your genetic data and that of others, the company could be making millions that they will never share with you. Specifically, as such sensitive data get passed along the transaction chain, the risk of mishandling the information increases.
Collectibles (Big Sports Moments)
Now, if your genetic data were minted as NFTs, the information will come with an inherent feature to be tracked. You would be able to see where it ends up, and hold those who used it without your permission accountable since you are the sole owner of the data, as certified by the NFT authentication. Moreover, the NFT owner can enable a feature to earn money whenever a transaction occurs with the data.
Decentralized Autonomous Organizations (DAOs) are a bit like crypto enthusiasts’ groups, but they often work toward a common objective. Such clubs allow members to participate equally in decision-making and may have access to financial resources that most clubs would never know what to do with.
However, they are spreading throughout the decentralised Internet. Their goals include funding bigger businesses, raising funds for blockchain-based initiatives, or mistakenly paying millions of dollars for the first edition of a book in the hope that they will also own the rights to that publication.
You can now “charge” your NFT with other tokens like, e.g., social or governance tokens — in fact, any ERC20 token works. The NFT becomes a kind of wallet in itself and gradually grows in value when its content appreciates in value. Charged Particles enable such a feature. And the team went one step further and partnered with DeFi champion Aave. When we put stablecoins like $DAI into our NFT, these $DAI get automatically wrapped into $aDAI — Aave’s interest-bearing version of $DAI. We now have kind of a savings account inside our NFT which we might use instead of a traditional savings account for our kids.
Finally, we can charge NFTs with other NFTs. And yes — this concept is completely compostable. We can do this several times and create “Russian doll NFTs” — which Charged Particle’s community recently did in their “Pass the Particle”. The team even thinks about yield farming options inside of NFTs.
An NFT that changes and deteriorates with time was recently dropped by Daniel Arsham. In Daniel Arsham’s NFT, a sculpture from his most recent exhibition at the Perrotin Gallery in New York is represented digitally.
The bust, which was modeled after an antique object in the Louvre collection, will be displayed in the courtyard area that Daniel and Six N. Five created. The sculpture will deteriorate, disintegrate, and then reform over the course of a year, changing itself once a month for a total of 12 months.
The courtyard will depict the shifting seasons while the bust deteriorates, starting in the spring with singing birds and a flowering tree and continuing through winter when a little snowfall blankets the ground. The sculpture will start over every year, with the cycle continuing eternally in time with the changing of the seasons. The last artwork will erode over a period of 1,000 years, with the other nine sculptures in the collection operating on various time scales.
Which NFT Will You Start With?
Now you have a complete understanding of all the different types of NFTs out there and how they can be used to change nearly every industry you could think of.
There are a lot more possibilities in the future of NFTs evolution. Start your journey into NFTs today with only one platform Motion Design School that will help you to jump into the NFT business and become a crypto artist.
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