NFTs and play-to-earn projects are actively discussed on the Internet, there is no doubt about that. There are the opposite opinions about it, too; and lots of myths emerge right on the go.
Stubborn crypto enthusiasts claim that the whole industry is undervalued and every more or less useful digital asset will only rise in price in time. The others keep repeating that the crypto market is doomed to crash, bitcoin price will hit zero, and NFTs prices will suffer as well. How do you find your own point of view between these two?
It is time to properly break down the NFT stocks and their perspectives.
What is NFT stock: technical background
An NFT stands for “non-fungible token”. Fungible tokens can be freely replaced with other fungible tokens of the same kind, they have the same value and the same utility. They are identical. Non‑fungible tokens, on the other hand, are unique.
What is NFT stock: definition
Why do NFTs draw so much attention these days? Why did you, personally, get interested in them, in the first place? Did a story of a teenager miraculously turning a millionaire got you hooked, did you get inspired by artists who make 4 ETH per digital art piece on SuperRare? Did the ridiculous simplicity of minting and publishing NFT get your attention?
The “stock” word usually refers to a company’s value, taken as a whole and broken into units called shares. Shares, in turn, give their owner certain governance right over the company, depending on how much of the stock they own.
Fungible tokens can represent company shares. Non-fungible tokens cannot. At least, there is no well-known example of this. So, as you can see, the phrase “NFT stock” does not bare much and can be freely interpreted. Yet, you still get search results looking for it…
What is NFT stock: top search results
What Google believes you are looking for when you type “buy NFT shares” is the shares of a company that is connected to physical art, any other successful company that sells shares, or anything remotely related to cryptocurrencies.
We found out, for example, that Twitter and Cloudflare shares are for some reason, called “NFT stocks”. Well, that article is nothing but a piece of poor marketing content, so just leave it be.
But hey, what is it that you actually were looking for?
What are NFT stocks
Having settled that it is not exactly adequate to call a particular set of NFTs “a stock”, we will nonetheless continue to use the phrase because the others use it to lure unaware wannabe investors.No such thing as NFT stock exists.
Those who promote “NFT stock” will find lame excuses to tie an unrelated stock to NFTs hoping you would buy it. You can only buy individual NFTs on special platforms. They are not sold in batches. You can invest in NFTs intending to sell them later, speculate on their price, or hold them as collectibles for your own pleasure.
What are NFT stocks: physical art
NFTs are associated with art because the latter can be encoded into a number and a number can be written into a blockchain.
That said, you can invest into a company that supports art trade buying its shares (Takung Art, for example). But it still has no relation to non-fungible tokens and blockchain.
What are NFT stocks: Ethereum NFT platforms
Ethereum is the second largest cryptocurrency in the world at the moment; most of the NFT trade deals close there. They are easy to find and we mentioned them in the article on NFT art before: OpenSea, Rarible, Foundation, SuperRare, and so on.
What are NFT stocks: non-Ethereum platforms
As soon as developers figured out they could write their own blockchain with smart contracts— possibly better than Ethereum in general—they made it happen: Near Protocol, Tezos, Solana, and others appeared. Each has its respective NFT shops.One necessarily requires a compatible linked wallet to trade on any NFT platform.
It is possible to buy Ethereum and purchase an NFT with it with Trustee Wallet: it links with WalletConnect compatible services.
NFT stocks meaning
Experienced (and wise) traders never get tired of repeating that cryptocurrencies are volatile assets, and overconfidence is not a healthy attitude to them. The same is true about NFTs.
NFT stocks meaning: investment value
There was a time when ERC-20 token prices were pumped crazily only to face inevitable market correction. Now is the time when NFTs and play-to-earn projects games are pumped crazily. Will they outlast the bear market? Think about it when you spend some bucks on a next crude piece of art or game.
NFT stocks meaning: speculative value
Holding NFTs long-term for profit might be a worse idea than holding any strong fungible token or coin, but how about selling it for optimal profit as fast as possible after the acquisition? It takes high skill and a lot of time unless you know how to automate the process.
NFT stocks meaning: how creators benefit
Making an NFT consumes network fee plus the fee of a particular platform, which can be a considerable sum in case of Ethereum. If you are just playing around, choose a cheaper chain. If you are confident in your talent, demonstrate consistency, grow your audience, and treat the whole venture as a business project.
NFT stock final notes
Hopefully, we gave a good example of how misinformation and manipulation may harm your financial welfare! Always dive deeper into news and credible educational web sources, gain profit, and have fun.