Today, investing in virtual assets is an alternative option but no longer a peculiar matter for us. Non-fungible tokens(NFTs), like collectibles in the physical world, are what many people are after, in addition to riding on the wave of a hot topic as Bitcoins and Ethereum in the virtual universe.
What differs from other cryptocurrencies is an NFT’s creativity and aesthetic value arousing in pursuers’ eyes. That’s why some NFTs are increasing in value nowadays. Do you know close to 1000 projects are out on marketplaces a year? Nonetheless, you can see celebrities show off their NFT trophies on social media and even participate in NFT projects. You may have heard an American artist Beeple sold an NFT: “Everyday: The First 5000 Days” for USD69 million. You may be the next millionaire on the door.
As said earlier, an NFT project is a digital artwork in the virtual world, and most price themselves in Ethereum – a cryptocurrency. You may admit not every artwork is valuable, like paintings, antiques, coins in the real world. Below is a list of the 10 best NFT digital works the most sought after in 2022.
What should you look for in an NFT project?
A non-fungible token is a profile picture in a JPEG format from a technical point, like artwork on a physical canvas. The content is what an absolute value lies. Therefore, it may be challenging to evaluate a painting because of a lack of objective criteria. Nevertheless, we may use objective factors to proxy an NFT’s underlying value.
1. Publicity
Like typical business activities, marketing is essential for NFT promoting activities. Celebrities, such as singers, actors, and sports stars, may increase brand awareness and create a popular trend for a non-fungible token. If the NFT author is a star artist like the book’s author: “The Harry Potter,” it may increase sales volume.
2. History
Unlike artwork or antique businesses, the digital art industry is short in its history. Thus, investors view a work of art popular for a certain period as probably more valuable than newly created works. The longer a work of art becomes popular, the more worthy it becomes.
3. Release intensity
Like an art industry, NFTs may not be worth much if the author produces many of the same NFT types than one digital artwork only a few years. An author’s yearly production volume is crucial to an NFT’s price appreciation capability.
4. Scarcity
Marketplaces place NFTs on different tiers based on their scarcity and author’s popularity ratings. Top tier tokens have the highest value than the lowest one. Products like sports stars by the NFL in the US are the most expensive than general basketball players on lower tiers. Besides, an NFT is worth more than the general one because of the author’s reputation.
5. Erasure of originals
NFT creators may destroy original work for several reasons. NFTs have higher values by the destruction of an original work. The second reason is that destruction is a condition of an agreement with a buyer. The final one is an intentional act before the closing of a deal.
However, it may arise when a creator sells a product with its copyright attached.
6. Added value
It is not surprising a seller may offer an NPT combined with additional benefits like memberships, events or conference tickets, VIP services, and a creator’s signatures. The added features create more intrinsic values and increase the price thereof.
The increase in value differs and depends on a creator’s reputation and added benefits. It is not unusual for an NFT to ever sell up to a thirtyfold increase in prices for a compared product in a recent time.
7. Restrictions
Besides destructions, an NFT creator may deal with a buyer on restricting the use of original artwork. The restrictions include limited or forbidden public display of an artwork a creator model against for the NFT. The conditions protecting a buyer may increase an NFT’s potential capital appreciation.
8. Blockchain security
A security environment for NFT businesses is essential to trades and investments. The issues for concern involve intellectual property security measures, internet blackouts, identity protections. Ethereum is the most used and secure blockchain technology catering to non-fungible token investments.
While investors feel secure and confident in a virtual investment system, it may increase asset value.
9. On-chain and off-chain metadata
Metadata is a set of information giving information about factual data. On-chain metadata is information attached to an NFT, making trades and investing convenient and leading to an increase in value. The reserve is valid if a creator does not integrate metadata into an NFT. It may have met the blockchain standards or protocols like Ethereum each time investors make deals. An off-chain NFT’s appreciation capability may lag behind an on-chain one.
The Best NFT Projects in 2022?
1. CryptoPunks
About the Project: CryptoPunks is one of the first projects launched in 2017. An American Studio Larva Labs, with 2 Canadian software developers, creates the project as the inspiration for the ERC-721 standards and the Modern CryptoArt Movement.
The Punks are AI-generated and limited to 10,000 in numbers only. You can bid, buy, and sell on the NFTs. However, the background colors indicate their sales status. The red background of an NFT is for sale; a purple background indicates an active bidding status, while a blue one tells you it isn’t for sale.
Regarding the CyberPunks categories, 9 are Alien Punks, 24 are Ape Punks, and 88 Zombie Punks. Alien Punks have deals of over USD8 million. Celebrities like Jay-Z and Serena Williams are also fans.
Average Price: 100ETH
No of Owners: 3091
Total Volume: 501,304ETH on average
Twitter: @larvalabs
Website: https://www.larvalabs.com/cryptopunks
2. Bored Ape Yacht Club
About the Project: Like Cryptopunks, the vividly-featured apes possess unique traits and personalities. Besides, they offer club membership to buyers, including online concerts and other perks. You may follow the roadmap to unlock and explore ore areas.
The number of Bored Ape Yacht Club is 10,000 at all. The NFT has massively increased in value recently, and an American rapper Eminem owns one.
Average Price: 45ETH
No of Owners: 5502
Total Volume: 165,117ETH
Twitter: @BoreApeYC
Website: https://boredapeyachtclub.com/
3. Cool Cats
About the project: Launched in June 2021, Cool Cats have different characters and features with their facial expressions and outfits. The number of tokens for the blue cats issued is 9,999. One of these perks is changing their features based on your preferences.
The highest price, till now, is the Zombie Cool Cat, sold for USD3.5 million. Except for their characteristics and features, holders can enjoy community giveaways and events as perks. The boxing celebrity Mike Tyson owns cool cat NFTs.
Average Price: 7.6ETH
Number of Owners: 4539
Total Volume: 34,350ETH
Twitter: @coolcatsnft
Website: https://www.coolcatsnft.com/
4. VeeFriends
About the project: Gary Vaynerchuk creates the platform and 10,225 tokens for members. Besides, members can get admission tokens to events, gift goats, and access to conferences. Holders can use the NFT technology to remodify and increase the varieties of the tokens. The founder aims to use the NFT technology to explicate intellectual rights fully.
Average Price: 21ETH
Number of Owners: 4,920
Total Volume: 25,550ETH
Twitter: @veefriends
Website: https://veefriends.com/
5. Mutant Ape Yacht Club
About the project: Created by the founders of the Bored Ape Yacht Club, Mutant Ape Yacht Club has some characteristics besides the former’s. Owners can mint the NPT using “a bottle of mutant serum” during a public sale and create pleasing ape images. The newest NFT technology also applies to the Bored Ape Yacht Club images.
The number of issued Mutant Yacht Club is 20,000. Some celebrity owners have NBA star Shaquille O’Neal, rapper Lil Baby, actor Drake Bell, and Ethereum co-founder Taylor Gerring.
Average Price: 5ETH
Number of Owners: 8,649
Total Volume: 76,871ETH
Twitter: @babymutantape
6. CyberKonz
About the project: What differentiates the NFT from others because they use 2D and 3D to crave the audience’s experience to make them look familiar, cool, or creepy. By evolution technology, Apes see themselves wandering around the earth and having special characters and outlooks, changing world reality.
Average Price: 10ETH
Number of Owners: 1,254
Total Volume: 17,129ETH
Twitter: @CyberKongz
Website: https://www.cyberkongz.com/
7. CryptoDad
About the project: CryptoDads have 10,000 personalities ranging from bravery to professionals. They offer different life aspects as dads together with distinct outlooks and appearances. Apart from these, members can enjoy other commercial rights like conferences.
Average Price: 1.28ETH
Number of Owners: 6,823
Total Volume: 7,043ETH
Twitter: @CyberDadNFT
Website: https://www.cryptodadsnft.com/
8. Lazy Lions
About the project: The platform community housing 160 members have lazy lions with unique characters and outlook for clothing, mane, facial expressions. The Lazy Lions club has a private place called “private island” for VIP members for exceptional user experience.
Average Price: 1.32ETH
Number of Owners: 4,390
Total Volume: 8,114ETH
Twitter: @LazyLionsNFT
Website: https://www.lazylionsnft.com/
9. Sneaky Vampire Syndicate
About the project: As the name implies, it is a congregation of 8,888 vampires doing business on the Blockchain. They have their stories to tell. A home called “Liar” exists where the vampires live a happy life because they don’t see the sunlight and traces of any vampire hunters.
Average Price: 1.6ETH
Number of Owners: 4,779
Total Volume: 12,253ETH
Twitter: @SVSNFT
Website: https://svs.gg/
10. CrypToadz
About the project: The creator, Gremplin, names himself the king of evil, ruling in a swamp. Amphibious creatures representing 6969 NFTs living in the swamp are trying to get free from Gremplin.
Average Price: 1.97ETH
Number of Owners: 2,980
Total Volume: 11,516ETH
Twitter: @cryptoadzNFT
Website: https://cryptoadz.io/
Which are the Best NFT Projects to Invest in?
You can notice the virtual business is now booming in the NFT space. Fascinating and diverse NFT collections are attracting your eyeballs when you go to the most popular NFT marketplace each time. But only some will survive over time. The following are the top NFT projects thought to win over the brutal competitions.
1. CyberPunks
The project is one of the largest ones by total volume in the market. It brings forth various likable and graphic images appealing to investors and collectors. And the NFT is the only product CyberPunks offers. It means a CyberPunk reflects its net value without any side-products attached.
2. Mutant Ape Yacht Club
Apart from naughty and colorful images, owners can play a part in recreating and remodeling NFTs using advanced technology. The marketing tactic may increase popularity and product value among buyers. The participation from investors and collectors may create more intrinsic value in the future.
More you need to know
1. What differs Non-fungible Tokens(NFTs) from Fungible Tokens(FTs)?
An NFT is not interchangeable with another NFT or FT, e.g., a CyberPunk cannot be exchanged for another CyberPunkt or Bored Ape Yacht Club. But an FT like a bitcoin can be a monetary medium for buying a coffee or other services from a shop. An NFT derives its value from media like Ethereum it attaches and investors’ perception of it.
2. How do I buy NFTs in Singapore?
You can buy NFTs in many NFT marketplaces list , and the most popular one is through OpenSea. The app and its web provide the most NFTs to buyers in the market. You can purchase almost all NFTs mentioned above except CyberPunks(available only through the official website).
Besides, you need Ethereum tokens and a wallet to start buying NFTs. You may use the popular Metamask or others to set up your wallet from its app or Chrome extension. The next step is buying Ethereum from cryptocurrency exchanges like Bitmax, Coinbase, Independent Reserve, Crypto.com, and Gemini.
The final step is to look for your favorite NFTs and start investing.
3. Are Non-Fungible Tokens(NFTs) Legal in Singapore?
The Monetary Authority of Singapore(MAS) has said it keeps a “tech-neutral” stance in crypto-collectibles, e.g., NFT businesses. However, it may keep an eye on the NFT activities to operate orderly and be subject to general rules and regulations in Singapore.
The MAS says it may legislate NFT fractional-share investments and treat it as a collective investment scheme like others. In January, the authority published guidelines related to crypto-related activities as the most updated rules for Crypto businesses.
4. How to Store your NFTs Safely
NFTs are valuables requiring a safe and secure place for protecting your assets. While a crypto wallet is a safe device, you need more measures to keep hackers stealing your investments. While buying and storing your NFTs online, you may reduce internet hacking of your assets by using a cold wallet to store NFTs.
A cold wallet is hardware keeping your NFTs safely in your place. Hackers cannot see and steal them because it is offline storage like a USB. You may keep your NFTs in a more secure site using a cold wallet though it may slow the buying process due to more procedures involved.
5. What is the Outlook for NFT investments?
NFT investing has become a popular trend in Metaverse in recent years. Like other investments, it may undergo booming and consolidation phases before entering the mainstream. Many projects come and go over time, and some may prosper. As an investor, you should know the risks of NFT investing and thoroughly research projects you plan for. Professional advice is another viable alternative together besides research.
Final Thoughts
NFTs are an alternative investment to traditional ones. Throughout the study, you should create investment objectives based on your preferences, investment horizon, and risk tolerance levels. These considerations can increase success chances.
Takeaways:
- NFT is a new form of art investing and collection dependent on blockchain technology.
- The Ethereum blockchain is the widespread use of the medium for NPT investing.
- NFT investing is a high-risk job, and conservative investors should avoid it.
- Like art investing, it involves personal preferences.
- You should use additional security measures like a cold wallet to store NFTs.
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