Fun fact: did you know that Grimes, the Canadian singer and former partner of Elon Musk, has sold USD million (~RM25.2 million) worth of digital art as NFTs? The digital art on sale included images and short videos made by the musician herself. If that’s not mind-blowing enough for you, former Twitter CEO Jack Dorsey sold his first-ever tweet for over USD2.9 million (~RM12.2 million) in 2021.
These are only two out of many examples where well-known figures and celebrities jumped on the NFT bandwagon. But what’s all the hype about, and more importantly, why is NFT trending despite it already being around for the past few years?
Why Are So Many People Going Crazy Over NFTs?
NFT, short for non-fungible token, is basically a unique way of selling or buying ownership of rare, one-of-a-kind digital products.
To put it simply, ‘non-fungible’ means that it can’t be replaced with any other things, unlike Bitcoin, where if you trade yours for another, you’ll still have the same thing: Bitcoin.
With NFTs, the owners of these digital products can be tracked via blockchain technology. An NFT can be anything from trading cards, video game items, songs, trending GIFs, drawings or an exclusive and one-of-a-kind artwork where only one person can gain ownership.
Do bear in mind that even if copies of digital products are available for purchase, only one person holds ownership of the said product. Still don’t quite get it?
Look at it this way: The Starry Night painting by Van Gogh may be seen on thousands of puzzles, mugs, shirts and the like. Still, only one person or organisation in the entire world holds legal ownership of the actual painting. In this case, the artwork has been owned by the Museum of Modern Art in New York City since 1941.
The Different Ways NFTs Could Benefit you
How NFTs could benefit you depends on whether you are a buyer or a creator. If you are a buyer, consider these benefits:
- Financially support creators or artists that you admire,
- Earn some fundamental usage rights, for example, being able to post the NFT online or use it in whatever way you’d like; and
- Legally claim partial or full ownership of an NFT, with a blockchain entry backing it up.
Suppose you’re a creator or an artist who’s interested in selling your unique masterpiece that may not be suitable for the average market. In that case, NFTs could be a perfect option for selling your artwork.
And the best part is NFTs can come with a feature that will offer you a percentage every time the NFT changes hands or is sold. So the more popular and sought-after your creation becomes, the higher your potential earnings.
NFTs Are Here To Stay, So Which Crypto To Buy To Get Involved?
Though NFTs started to gain traction in 2021, NFTs originally surfaced back in 2017, when CryptoPunks, the world’s first digital art on the blockchain, was launched.
Fast forward to 2021, NFTs became the talk of the town again as more top companies, tech billionaires, big celebrities, and digital art/content creators started seeing the vast potential and opportunity that NFTs bring.
According to crypto experts, NFTs have the potential to be more than a fad that will not fizzle anytime soon, so let’s delve deeper into which crypto to buy if you’d like to be involved.
Ethereum, The Largest Blockchain That Supports NFTs, With Ether As Its Native Cryptocurrency
It’s impossible to talk about NFTs without mentioning Ethereum, which, by market capitalisation, is considered to be the second-biggest cryptocurrency so far. When it comes to NFT technology, Ethereum plays a crucial role in hosting NFTs while storing information about the owners of these digital assets.
The Ethereum platform allows anyone to develop digital services and applications across industries – from gaming to financial services with little to no third-party involvement.
In theory, since there’s no central party controlling users’ data, this helps reduce data loss risk. As a result, many users believe that the applications developed on this platform will be less vulnerable to censorship and more efficient to run.
The adoption of Ethereum has been quite promising so far, with thousands of decentralised projects currently running on its platform. Ether (ETH), the native cryptocurrency of Ethereum, is mainly used to incentivise users to perform tasks on the platform through transaction fees.
In contrast to Bitcoin, which functions by transforming payments and funds via blockchain technology, Ethereum was intended for applications across finance, collectables, gaming, and beyond.
With the platform’s very own internal cryptocurrency, autonomous smart contracts, and virtual machine, there’s a massive potential for this technology to be applied in every aspect, as long as it continues to dominate the industry and grow steadily for a long time to come.
Ethereum is projected to be even stronger as soon as it’s done transitioning into a proof-of-stake model in late 2022. As a result, the platform would be better equipped to manage more transactions, in addition to lowered carbon footprint, reduced costs, and greater efficiency.
Send Ethereum With Luno, Malaysia’s Leading Regulated Digital Asset Exchange
Sending Ethereum funds from the Luno wallet to external platforms of your choice is really convenient and fast. Specifically, if you’re wondering how to buy NFTs, consider doing so via MetaMask, an application that serves as an Ethereum wallet and allows you to interact directly with NFT marketplaces.
After purchasing some Ether on Luno, you may transfer it to your MetaMask wallet. Once that is done, you may connect your MetaMask wallet to NFT marketplaces such as OpenSea to hunt for your first NFT.
Log on to Luno’s website and register for an account today. Here’s how:
- Sign up for a Luno Wallet on the web or download the app on Apple App Store or Google Play Store.
- Follow the instructions to verify your identity and set up your profile.
- Once your application is approved, your wallet is ready, and you can start investing in cryptocurrencies.
- Deposit into your Luno wallet through your preferred payment method.
- Instantly purchase and store your preferred crypto.
Meanwhile, do you have friends/family members who have not signed up for an account with Luno in Singapore? Refer them and enjoy SGD30 (~RM93) in Bitcoin! Here are the steps to invite your friends:
- Share your unique invite code to your friend from the Rewards Page
- Your friend signs up, deposits and buys SGD200 (~RM621) of crypto
- You both get SGD30 (~RM93) worth of free Bitcoin
Read more on the Terms & Conditions for Luno’s referral programme: www.luno.com/en/legal/rewards-and-promotions
This article is brought to you by Luno and is meant for educational purposes only.
You should not construe any such information as investment or financial advice. Investing in cryptocurrency and NFTs is high risk and may result in capital loss as their values can fluctuate. We recommend that individuals consult with a licensed financial planner for detailed financial advice on whether cryptocurrency is a good investment option.