NFT Marketplaces: The World of Digital Collectibles

A non-fungible token, or NFT, is a type of digital token that serves as an electronic certificate of ownership for virtual or physical assets like brand products secured by an NFT, event tickets, and virtual or physical art.

Each NFT is a distinct, non-fungible, and indivisible digital asset. Unlike Bitcoin or Ether, NFTs are not identical to one another. That means they cannot be traded or exchanged on an equivalent basis and cannot be used as a form of payment for commercial transactions. From another perspective, NFTs can be redeemable, which means they can be resold or burned (exchanged for the actual product they represent)..

Some NFTs are more desirable, and as a result, buyers are willing to pay a big price for them, while other NFTs can be found for just pennies. In this market, the more well-known an item is, the more expensive it is.

Examples of the priciest NFTs on the market:

● Exclusive physical bottle of Chairman’s Reserve -150 individually numbered bottles available, each around US $4,500

● The animated film Nyan Cat sold for $590,000.

● A kitten from CryptoKitties sold for $172,000.

● Digital art by Sines and a physical Gap x Frank Ape sweatshirt for $415

Unlike Bitcoin or Ethereum, tokens cannot be traded directly on major cryptocurrency exchanges. Buying and selling NFTs requires a specialized trading platform which can issue, hold and sell non-pluggable tokens. Currently, the market is dominated by the large marketplaces like OpenSea, Rarible, Superfarm and Mintable.

They create NFTs using special smart contracts that add a unique set of information (metadata) to each token and specific key parameters (name, immutability, indivisibility, address/number, etc.). After that, non-fungible tokens can be bought and sold on the site either at a fixed price or through an auction.

From the client side, NFT markets work like regular online stores. Users need to register on the platform and create a personal digital wallet. They can use the listing to purchase NFTs or create their own tokens. Getting started with NFTs is usually simple and similar to creating an eBay listing. Add a name, price, description, and images, photos, videos, GIFs, and more.

NFT markets combine the features of a blockchain platform for online stores, auctions and the issuance of non-fungible tokens. In addition, these markets usually provide an opportunity to attract and retain customers and improve service quality. NFT marketplaces provide a space for Brands, creators, collectors, and enthusiasts to connect, showcase their work, and engage in the buying and selling of these digital assets.

NFT markets combine the features of a blockchain platform for online stores, auctions and the issuance of non-fungible tokens. In addition, these markets usually provide an opportunity to attract and retain customers and improve service quality. NFT marketplaces provide a space for Brands, creators, collectors, and enthusiasts to connect, showcase their work, and engage in the buying and selling of these digital assets.

The NFTs were on the market back in 2017, but the interest towards them was minimal. So the industry only started gaining popularity only now. Investors and ordinary people perceive this as a place where ordinary pictures, even those whose artistic value may seem questionable to ordinary people, can be sold for millions and hundreds of thousands of dollars.

NFT is not actually about a picture, at the end of 2021 it is already being used as a technology mainly by brand to reinvent consumer engagement, open new revenue streams, interact with younger audiences. In the period of 2023-2024 there is going to be a lot of growing potential in the industry.

The gaming world is the second area in terms of scale, which gave development and distribution for NFT. The GameFi sector is able to combine finance and games, and the trend itself is called NFT gaming. The bottom line is that players in the process of
entertainment receive rewards with gaming NFT assets.

This idea is possible with the development of games made on the blockchain. The play-to-earn model grew a massive interest of the audience. This is an opportunity not only to play, but also to earn tokens by converting them into real money or products. This type of mechanism is used by brands to integrate their products into the game flow. For example, Nike integrated an Air Max collection into the Fortnite game. Users can receive the Air Max 1 ’86 Back Bling cosmetic in-game asset within Fortnite.

According to Jefferies, an international investment bank, by 2025 the NFT market will reach a capitalization of $80 billion and will continue to grow. Despite serious corrections in the cryptocurrency market, the growth trend of NFT tokens continues to develop.

When choosing an NFT marketplace you should define the theme correctly. Foundation, Sotheby’s and Christie’s for collectors, artists, art connoisseurs, creators, Axie Infinity and CryptoKitties for gamers, NBA Top Shot and Sorare for sports fans. There are also unique platforms like OpenSea, LooksRare or Rarible, where, like on Aliexpress, you can find assets for every taste.

The main perspective for NFT is the development of the new Web 3.0 market, which is already slowly getting into our lives. In other words, new leaders, a new society, relationships and consumer models are being formed thanks to NFT.

In conclusion, we would like to recommend beginners to start their journey in the NFT universe from popular reliable platforms like OpenSea and Rarible. For gamers, Magic Eden, Axie Infinity, Sorare will be good, for collectors and connoisseurs of digital art – SuperRare and Foundation. In terms of price dynamics or promotion opportunities, all NFT marketplaces are about the same. The value of a non-fungible token currently arises only from its authenticity and uniqueness.