According to data from Chainalysis, collectors in 2022 have
sent over $37 billion worth of assets to NFT marketplaces as of May 1, putting them on pace to easily
beat the total of $40 billion sent in 2021.
You've probably been introduced to the concept of NFTs through pieces of art that fetched big dollars at
auctions, but because of the "smart contract" technology they are based on, NFTs' utility stretches
beyond collectible art.
The NFT marketplace is still relatively new and transaction activity has declined in recent weeks, but
investors, institutions, companies and celebrities continue to explore this world of digital tokens and
smart contracts.
For investors who want a piece of the token pie, here's what else you need
to know
about NFTs and how to manage them:
Since NFTs are non-fungible, each token is unique and cannot be replicated. Because of this distinct
characteristic, NFTs are represented as unique information on a blockchain, ensuring integrity of
digital ownership.
This record of original ownership cannot be changed, since its existence
is
time-stamped on the blockchain. Each NFT represents either a physical or digital asset.
Aside from art, this can be anything from intellectual rights to a title of ownership to an asset.
The traditional principle of investing, buy low and sell high, also applies for NFTs.
Market participants can buy NFTs early and turn around and sell them for a profit if the interest in the
token grows.
There are NFTs that you can buy where you can flip right away and others you can hold.
NFTs are not like a stock or a bond where you have a quantifiable idea of the intrinsic value of the
investment aside from its market value. They have a market value that's driven purely by what the crypto
community is willing to pay for them.
NFTs are unique due to their verified ownership that cannot be replicated or manipulated. When an item
is limited, it becomes more valuable. The NFT market is speculative, with people buying up NFTs because
there is the belief that they will later be more valuable to someone else. So people are collecting art
NFTs because they think they will be valuable in the future.
According to Footprint Analytics, the cumulative trading volume of NFTs was $21.5 billion by the end of
2021, compared to $120 million before 2021 — a 200x jump in cumulative trading volume.
We trade and mint NFTs profitably and bring investors great returns on their investments.
All the hottest NFT collections are on Upper Echelon
