All You Need to Know About Non-Fungible Tokens
The cryptocurrency market has exploded in the last few years, with hundreds of new digital currencies being created, each more unique than the last. However, one kind of cryptocurrency is getting more attention than others, and those are non-fungible tokens, or NFTs for short. So what are NFTs? How do they work? And most importantly, how much are they worth? In this article, we’ll answer all of these questions and more so you can get an idea of just how much these kinds of cryptocurrencies can be worth.
What are non-fungible tokens (NFTs)?
In cryptocurrency, NFTs (or non-fungible tokens) are digital assets that aren’t equal or interchangeable. While many crypto tokens represent fungible goods—services, currency and so on—and can be exchanged freely, an NFT is distinct in that each token is unique. Some crypto projects will create their own crypto collectibles using Ethereum smart contracts; one popular example is CryptoKitties , which allows users to purchase and trade digital cats on a blockchain platform. Other developers may choose to build their own platforms for creating NFTs. Regardless of how they’re created, NFTs have become increasingly popular among blockchain startups and investors alike as a way of raising funds through initial coin offerings (ICOs). This year alone, ICO fundraising has already eclipsed 2017 levels with more than $3 billion raised as of November 2018. The concept of an NFT isn’t new: They were first used in 1993 by Magic: The Gathering card creators Wizards of the Coast to distinguish between cards that could be traded versus those that couldn’t due to rarity.
Top Uses of NFTs
While not yet widely used, there are a few NFTs that have already shown their potential. CryptoKitties, which had over $12 million worth of sales in its first year, is an early leader among NFTs. CryptoPunks, another NFT based on art assets originally created 20 years ago and whose users can resell their punk assets on marketplace sites like OpenSea, has also garnered attention.
Why Are Some NFTs Worth Millions?
It’s possible for some CryptoKitties, for example, to be worth hundreds of thousands of dollars. This is because CryptoKitties are based on a non-fungible token, which means that each one is unique and will never be duplicated. The same can be said about many other CryptoKitties—and any other NFTs.
Cryptokitties Makes Over $20 Million in 30 Days
NFTs also have immense potential because of their unique functionality. Cryptokitties, for example, made headlines in December 2017 when it became one of the most valuable NFT tokens in existence (determined by market cap) with cats like Dragon and Genesis being sold for around $100,000 each! $20 million worth of transactions took place over a 30 day period with an average price point per cat coming out to $21.89.
The Long Road Ahead For Cryptokitties
CryptoKitties is an NFT collectibles platform, in which users can buy and sell unique digital cats. As of March 2018, CryptoKitties had over $12 million worth of kitty sales. And by December 2018, CryptoKitties had at least 17 kittens trading for more than $100,000 each. The company raised more than $12 million from a group of investors including Andreessen Horowitz and Union Square Ventures.
The Future of Gaming
NFTs have become incredibly popular recently, following a rapid rise in popularity that has resulted in non-fungible tokens like CryptoKitties selling for hundreds of thousands of dollars. But why are NFTs so popular? What makes them special? And what is it about them that makes them so valuable? Let’s find out.