You have finally grasped what bitcoin is. You are beginning to understand what Defi (or decentralized finance) is. You want to understand how NFTs work. Don't worry, it's not that complicated. An NFT is a digital token with its own characteristics and which is not interchangeable. It is, therefore, unique, unlike a bitcoin which can be exchanged for another bitcoin. Ah, we almost forgot: it is based on blockchain technology, most often on Ethereum, which means that we can certify who it belongs to and trace it.
To buy or sell them, there are several specialized platforms such as OpenSea and Rarible.
The first known NFTs are called Cryptokitties, little virtual coloured cats that look like Pokémon. Appeared at the end of 2017, this project is simply a collection game (we call it a collectable in the jargon) in which you can buy, sell and even create a new Cryptokitty by merging two of them. Within days, the total transaction amount of Cryptokitties had reached nearly $5 million. A huge success that even congested the Ethereum network. The "Genesis" cat, for example, was sold for 246 ethers, the equivalent of 97,000 euros at the time (and 300,000 euros today!). "In the days of Cryptokitties, NFTs were more like basic tokens associated with images. For some users, it represented something unique to collect, and for others, it was worthless since it was enough just to copy the 'image to have it,'. Like any asset, it is useful to remember that it is a risky investment and that it is better to put in money that you are ready to lose.
Unique music
Since 2017, NFTs have changed a lot. It is always possible to buy a Cryptokitty but also works of art, game cards, domain names or even tweets. Twitter boss Jack Dorsey auctioned off his first tweet on March 6 2021. The highest bidder has offered a modest sum of $2.5 million. Still far from the record, which amounts to 6.6 million dollars for a digital work by the artist Beeple representing Donald Trump, not really to his advantage.
These two examples are a bit like the trees that hide the NFT forest. In 2020, more than $250 million was traded on the NFT market, compared to $63 million in 2019. This is much less than what is brewing in 2021. In February alone, the volumes traded on the market reached more than 340 million dollars.
The valuation of this market jumped 138% between 2019 and 2020. A drop in the ocean compared to the Defi, which today weighs around 38 billion dollars. But a year earlier, it was worth "only" 550 million dollars. It's the same principle as for Bitcoin, Ethereum and other crypto phenomena. First, there was a phase of the creation of NFTs in 2016-2017 followed by a great craze which fell. Then there was a craze around Cryptokitties at the end of 2017 when we were at the top of the bubble (the price of bitcoin had come close to $20,000, editor's note) then it fell back. In the meantime, NFTs continue to develop, and we arrive today in a new phase of adoption with a new bubble. It's like an alignment of the stars. We're in a bubble. There are lots of projects, artists and influencers are getting into it.
What is NFTX?
The NFTX coin (NFTX) is the native token based on the NFTX protocol. It's also a community-owned platform for creating NFT-backed ERC-20 tokens, which represent index funds as they index NFT projects.
The NFTX protocol and platform powers the creation and trading of index funds that track popular NFT collectibles such as CypherPunks and CryptoKitties. In addition to NFTX, index funds created can also be traded on decentralized exchanges (DEX)
In addition to being used as a utility token in the NFTX protocol, the NFTX token is also used as a governance token through a Decentralized Autonomous Organization (DAO).
To buy NFTX, all you have to do is find a reliable exchange, open a trading account, and deposit funds (fiat or crypto, depending on which form is allowed) to buy the amount of NFTX tokens you want.
