How much would you pay for a ticket to the Cavern Club the night the Beatles played for the first time? Yes, we are facing the millionaire (or billionaire) cousin of tokenization: the non fungible tokens.
NFTs have emerged surprising (and confusing) the world with transactions of unimaginable values for goods that would not leave the places where they were exposed or, more incredible, can be freely copied on the internet.
On the other hand, they have paved the way for business tokens to reach their current growth, attracting the eyes of companies to the inventiveness and disruptiveness of the method of creation and offering.
The NFT market has moved out of the stratospheric high-dollar auctions and into markets where uniqueness and exclusivity are the rules – general collectibles, art miscellany, blockchain games, and other segments.
But is it worth investing in NFT in these and other markets?
BLOCKBR, a web 3.0 native company, will talk about the NFT moment and how to deal with it for investing!
HOW DO NON FUNGIBLE TOKENS WORK?
NFT is the encrypted digital representation of a physical or digital asset that is unique and unrepeatable, that there is no other with the same characteristics and artistic or historical value.
Whether it is the first white glove worn by Michael Jackson at a concert or a World Cup final ticket, the concept of NFT is the same: uniqueness generating value.
When you buy an NFT, it becomes a digital property certificate, whose authenticity can be proven on the blockchain where the token was generated. It can be resold, provided it is on the same blockchain, which will transfer the certificate.
This systematic does not differ much from business tokens and cryptocurrencies. The difference between NFT and other crypto-actives is the specificity of the object and the potential market for trading a non-fungible token.
WHERE ARE NFT PRESENT?
Nowadays, it is not only works and belongings with historical and artistic value that move the NFT market. The token is present in several segments.
- Artwork and collectibles in general;
- Music and audiovisual production;
- Blockchain gaming (customized game items);
- Land and other items in the multiverse.
The non-fungible token is no longer something exclusive to the celebrity world, but this has not diminished the aspects that define the risks and opportunities and that we will see below.
UNDERSTANDING THE NFT MARKET
Why pay such a high price for something you don’t physically own – in the case of works of art – or that can be freely copied, like the NFT from the first Twitter post, sold for $3 million and resold for less than $10,000?
What really matters in this market is the digital certificate of ownership, issued only once per transaction, within the blockchain, deposited in the buyer’s digital wallet, and which has no way of being copied.
Wherever the asset is, there is only one owner – which can even be a group of people or a company).
In the most exclusive negotiations, the NFT offer’s smart contract provides for the work to remain at the exhibition venue, which will affect its market value.
IS IT STILL WORTH INVESTING IN NFT (NON FUNGIBLE TOKEN)?
NFT are essentially unique and unrepeatable items, which makes people imagine that investing in non-fungible tokens provides high and quick gains. This is possible. However, it is necessary to be very careful with some aspects.
SENSE OF OPPORTUNITY
In this point, NFT is just like stocks: one must assertively evaluate the moment to invest and sell, whether there is downside risk or upside opportunity. With NFT, the caution should be greater, because the resale market for NFT is restricted.
VALUE PERCEPTION
The exclusivity and uniqueness of an NFT do not alone define the value of an NFT; at the other end there is the perception of value. A scandal in the artist’s life, for example, can catapult or bury the value of NFT, and you will find that your gold mine has turned to desert sand by lunchtime.
SPECULATIVE LEVEL
Where there is subjectivity of value, there is speculative degree. Groups interested in hypervaluing an NFT can create an artificial context for the sale to occur faster and/or more expensively, creating a bubble that will fall on those who buy the NFT.
It is important to remember that these aspects are not just at Christie’s auctions; they are part of the NFT supply and demand dynamics of all the markets where they are present.
In terms of risk, NFTs are like cryptocurrencies: they require a studious and watchful eye for various market movements – with the difference being that digital currencies have a growing market at higher liquidity.
LEARN ABOUT OTHER TYPES OF TOKENS TO INVEST IN
NFT is part of a larger, diversified, steadily growing asset tokenization market with secure opportunities, great profitability, and without the instability of non-fungible tokens.
Business tokens represent a variety of tokenization projects for real assets, digital and financial assets, and rights, products, and services.
In these projects, tokenizing is a market strategy, with feasibility and market studies done between the asset owner and the tokenizing company.
Learn about token options options.
UTILITY TOKENS
These are utility tokens, used by companies to give customers access to products and services with exclusive benefits, such as rewards programs. A well-known example is the fan token, used by artists, celebrities and soccer clubs.
Even though it is not an investment product itself, it is a form of relationship with the brand that provides financial advantages, such as discounts and promotions.
Do you want to know more about what utility tokens are? Understand everything you need!
SECURITY TOKENS
These are tokens of tradable assets – stocks, debentures, bonds, and guarantees. It is possible to have only a fraction of the supply, allowing you to enter this market by investing less. It has a valuation that is related to the associated asset, so it is an investment token.
Click and learn more about what security tokens are!
REAL ASSET TOKENS
Super structured tokens are the class of tokenized offerings of real estate, vehicles, machinery, equipment, collectibles and other assets. It can be used by companies and individuals and is an investment token, because the gain is in the fluctuation of the asset’s value in the market.
FINANCIAL ASSET TOKENS
These are the receivables anticipation tokens, an excellent alternative to obtain passive income with superior remuneration, because the offeror avoids the high interest rates of banks and financiers and can remunerate the investor better.
DIVERSIFY YOUR INVESTMENT IN TOKENS
As we have seen, the token market goes far beyond the short-lived success of NFTs with trades in the millions of dollars – and we don’t even need to go that far to get great returns.
Did you know that you can buy corporate asset tokens and get great returns?
To get to know them, the first step is to open an account with BLOCKBR, an experienced asset tokenizing company that is always looking to enrich its menu of projects.
Registration is simple and fast.
Quickly, you will have a token selling platform that is easy to use and complete in data for each offering.
Open an account with BLOCKBR and make the best investment choices!
BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
