Unique items have always attracted collectors who are willing to pay big bucks to get them. Plates, baseball cards, stamps, old postcards, and rare coins were sold to collectors for a huge prize. Now these items are digital thanks to the use of blockchain technology.
These elements are now represented on many different blockchain networks as “unique” digital assets known as non-exchangeable tokens. The use of blockchain technology means that it is easy to verify authenticity and ownership, especially in a world where scarcity plays an important role in valuing assets.
The artwork, originally created by famous street artist Banksy, was converted into an NFT version of physical painting, which was intentionally destroyed – and subsequently sold for nearly $ 400,000. “By decentralizing the concepts of origin and originality, NFT is revolutionizing our understanding of ownership and value,” Anita Moore, CEO of Blind Boxes, a digital art platform for NFT, told Cointelegraph.
What are NFT Trading Cards?
NFT trading cards are virtual representations of their physical underlying assets. Once presented on the blockchain, these cards receive verification of stability and general ownership. Even if the physical version is lost or corrupted, NFT will still exist on the blockchain as long as the latter exists.
People can create a virtual representation of these cards by generating a token on Ethereum or other smart contract blocks. These icons are not spongy and contain metadata about the card, particularly its image. It can be stored, viewed, and transferred via a wallet that supports NFT.
There are many platforms through which people can create, buy, and sell these items. Some of the biggest ones at the moment are OpenSea and Hoard.exchange.
Achievement is growing as an investment
Collectibles, like artworks, are unique, and their digital transformation is increasing at a rate that collectibles are generally an investment category. Outside the cryptocurrency area, trading card sales are gaining momentum.
Nick Rose, Founder and CEO of NFT Ethernet Chain, believes that by supporting these tokens, celebrities and influencers are adding real value to assets, Cointelegraph tells:
“ Obviously, original NFTs from real figures in the world of sports and entertainment are the only true future of NFT collectibles. When we start falling out with Tony Hawk or Muhammad Ali or legendary soccer player Pele, they are all tested, approved and supported by these people – thus creating value Real essential to them. ”
There are many examples of successful NFT collection companies. The price of mint status cards on the StockX trading platform jumped from $ 280 to $ 775 on average compared to last year. The rare Tom Brady card was recently sold on the platform for $ 1.3 million, as it is one of 100 such cards for the junior season.
Many traditional investors are starting to turn to risky asset classes like cryptocurrencies and blockchain companies. However, when asked about this recent trend, Radek Zagorovic, CEO of Hoard Exchange, the blockchain gaming platform, warned of the dangers of blindly following the “hype train”. He explained to Cointelegraph,
“NFT is a new digital revolution, but as with all new technologies, it is often misused. There are many projects that will only use this as a promotional tactic and not for a truly valuable purpose. Investors should be very careful about investing in every project that mentions NFTs.” , As they did with the blockchain a few years ago. ”
These incidents occur when millions of people are separated by quarantine in an effort to curb the increase in COVID-19. When the economy collapsed, countries like the United States, Brazil, Germany and Japan lowered interest rates and bought government bonds, making them less attractive to investors.
At the same time, quantitative easing has also led to fears of hyperinflation, pushing traditional investors away from equities and fiat currencies against precious metals and cryptocurrencies; With the latest interest is NFTs.
Regular artists and organizations dive into NFT
More than 230,000 NBA fans joined NBA Top Shot to share moments in NBA history as NFT, and MLB and its players announced the launch of new NFT trading cards in partnership with Topps, the leading US trading card manufacturer.