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With the multitude of expressions and acronyms that comes with NFT trading, navigating this space can be complex sometimes. For this reason, we collected the most used words and slangs to help you out. Want to see more in this list? [Get in touch](https://rarespot.io/contact-us) with us.

### 1:1 NFT
An NFT with a single token issued for the unique asset, making it one of a kind.

### Airdrop
The distribution of a cryptocurrency or NFT to a large number of individuals, for free or at a discounted price.

### Bagholder
An individual who holds a large amount of a particular cryptocurrency or NFT that has decreased in value.

### Bluechip NFT
A project that is expected to be stable in terms of value and profitability in the long term. Visit our latest article to learn more about bluechip NFTs.

### Bounty program
A program that rewards individuals for completing certain tasks or achieving certain goals, often in the form of tokens or cryptocurrency.

### Burn NFT
A method used to effectively destroy a token by sending it to an address that nobody possesses.

### Buy the dip
Buying an asset when it has declined in price, and then profiting once the price value increases to its previous level or higher

### Cold wallet
A digital wallet that is stored on a platform not connected to the internet. This type of wallets are more secure since these are not dependent from online connections, but on the other hand performing operations or exchanges is less efficient.

### Collectible
Digital collectible files are readily available for anyone through NFTs, and they can be collected, traded, invested in, and even find other utilities in the context of video games or the metaverse. NFTs work as unique identifiers of digital files that can be used to trace their history and proof ownership.

### Creator
An individual or an entity that created an NFT, such as an artist or designer.

### Cryptography
The practice of secure communication, which includes techniques such as encryption and decryption.

### DAO
Acronym for Decentralized Autonomous Organization, is a decentralized organization run through smart contracts on the blockchain, allowing for automated decision-making and self-governance.

### DAO governance
The process of making and enforcing rules or policies within a DAO.

### DAO token
A token that represents ownership and voting rights in a DAO.

### Decryption
The process of converting an encrypted message back into its original plain text form.

### DeFi
Short for Decentralized Finance, refers to a financial system that uses blockchain technology and smart contracts to enable peer-to-peer transactions and financial services without the need for intermediaries.

### Degen
Short for ‘degenerate’, refers to those that buys a specific asset without performing due diligence — believing that other will buy in — taking high risks.

### Delist NFTs
The act of removing social tokens, digital items, and crypto art assets from the marketplaces on the web. By doing so the NFT will not be available for purchase, making it delisted.

### Diamond hands
It’s a terminology that refers to traders who do not sell a particular asset they’re holding, regardless of the volatile market conditions.

### Digital art
Artwork that exists in digital form, such as a digital painting or a 3D model.

### Digital asset
A digital representation of value, such as a cryptocurrency or an NFT.

### Digital scarcity
The limited availability of an NFT, which can affect its value.

### Digital signature
A unique code that verifies the authenticity of a digital document or message.

### Digital wallet
A software program that stores and manages digital assets.

### Discord
An online platform where users can discuss crypto-related news, transactions, and plans in various servers. Visit the official webpage to get to know more.

### Dutch auction
A price discovery process in which the auctioneer starts with the highest asking price and lowers it until it reaches a price level where the bids received will cover the entire offer quantity.

### DYOR
Short for “Do Your Own Research”. Used to warn people about potential frauds or encouraging them to learn about a project before they invest and be aware of the risks.

### Encryption
The process of converting plain text into a coded message that can only be decrypted with a key.

### ERC-721
A data standard for creating non fungible tokens, meaning each token is unique and cannot be divided or directly exchanged for another ERC-721 token.

### Ethereum
A decentralized, open-source blockchain platform that runs smart contracts. Ethereum is one of the most popular crypto networks and has the second largest market volume, right after Bitcoin.

### Fixed-price listing
A method of selling an NFT at a pre-determined price, without the need for a bidding process.

### Flipping NFTs
The process of purchasing an object at a cheaper price, retaining it for a period of time, and then selling it for a profit.

### Floor price
The lowest price among all the NFTs within a collection.

### Floor sweep
When someone purchases all of the NFTs of a project at the floor price.

### FOMO
Short for “Fear of missing out”, refers to the feeling of urgency to invest in a project before it becomes unavailable or its value increases.

### Fractional ownership
An investment approach that allows the cost of an asset to be split between individual shareholders. Visit our guide to discover more about fractional NFTs.

### Free minting
The case of a minting process where the NFT buyer covers the fees to mint instead of the creator.

### FUD
Short for “Fear, Uncertainity, and Doubt”. Used when the future prices are uncertain and there are pessimistic expectations from the market.

### Fungibility
The property of a good or asset that can be exchanged for another good or asset of equal value.

### Gas fee
A fee paid to miners for processing transactions on the Ethereum blockchain.

### Gas war
An auction for priority inclusion in an upcoming block of transactions to be validated on a blockchain. When demand is high, the price of a priority position can rocket. So, it occurs when the demand for an asset is higher than its supply.

### Generative art
A digital art style in which artists use algorithms as a tool. In general, it is created by an algorithm in a program that randomly selects and combines predesigned art layers.

### GM
Short for “Good Morning”. Commonly used among NFT investors and enthusiasts in community chats while starting their day.

### GN
Short for “Good Night”. Commonly used among NFT investors and enthusiasts in community chats while starting their day.

### Governance token
A type of cryptocurrency that gives the holder voting rights or other decision-making power within a particular ecosystem.

### Hard fork
A permanent split in the blockchain, resulting in the creation of two separate networks with different protocols.

### Hash function
A mathematical function that converts data into a fixed-size string of characters, also known as a “hash.”

### HODL
Short for “Hold on for Dear Life”, refers to holding an asset for a long time. The origin of this anagram comes from a misspelling and it is jokingly used for believing in future profits of an asset and holding it with this belief.

### Hot wallet
A cryptocurrency wallet that is always connected to the internet and cryptocurrency network.

### Leverage
The use of borrowed capital, such as margin, to increase the potential return on an investment.

### Liquidity
The ability to easily buy and sell an NFT.

### Market capitalization
The total value of a cryptocurrency or NFT market.

### MetaMask
A software cryptocurrency wallet used to interact with the Ethereum blockchain. Visit the official webpage to create your wallet.

### Metaverse
A virtual world, accessed through the internet, where users can interact with each other and virtual objects, often thanks to digital avatars.

### Miner
An individual or entity that participates in the process of mining.

### Mining
The process of verifying and adding transactions to the blockchain, typically performed by computers solving complex mathematical problems.

### Mint
The process of creating new assets through verification of data, creation of new blocks, and documentation of the verified information on a blockchain network through Proof of Stake consensus.

### NFA
Short for “Not Financial Advice”. Influencers in the web3 space tend to use this word to encourage followers to do their own research and — doing so — avoid any responsibility for their financial decisions.

### NFT
A unique digital asset that represents ownership of a one-of-a-kind item, such as a piece of artwork or a collectible. To learn more about NFTs, visit our article.

### NFT auction
A process of selling an NFT through a public bidding process, with the winning bidder paying the highest price.

### NFT marketplace
A platform where NFTs can be bought and sold, often through auctions or fixed-price listings.

### NFT rarity
The rarity of an NFT, which can affect its value.

### NFT royalty
A payment made to the creator or owner of an NFT for the use of their work.

### NGMI
Short for “Not Gonna Make It”. A pessimistic approach used in web3 communities to emphasize that the hope is lost towards certain projects or assets.

### Non-fungibility
The property of a good or asset that is unique and cannot be exchanged for another good or asset of equal value.

### Noob
Commonly replaced by “Newb” or “Newbie”, is a term that means “new blood” referring to newcomers in a community.

### Off-chain
A transaction or activity that is not recorded on the blockchain, typically used for privacy or speed purposes.

### On-chain
A transaction or activity that is recorded on the blockchain, providing a permanent record.

### Opensea
A NFT marketplace that offers users the ability to buy, sell, create, and trade NFTs.

### P2E
Short for “Play to Earn”, this usually refers to video games and virtual worlds where gamers play for crypto token rewards.

### Paper hands
A slang phrase to describe traders who sell too early, usually because they don’t want to take risks.

### PFP
Acronym for “profile picture”, refers to having NFTs as a profile photo on a social media. This trend started with the rising popularity of CryptoPunks in 2021.

### Private key
A secret code that allows access to a cryptocurrency wallet.

### PoS
Short for “Proof of Stake”, is a system that requires individuals to “stake” their own cryptocurrency in order to validate transactions and add them to the blockchain.

### PoW
Short for “Proof of Work”, is a system that requires miners to perform a certain amount of work in order to validate transactions and add them to the blockchain.

### Public key
A unique code that represents a cryptocurrency wallet and is used to receive transactions.

### Pump and dump
A scheme in which a group of individuals artificially inflate the price of a cryptocurrency or NFT through coordinated buying, and then sell it off quickly for a profit.

### Reveal
The date that an NFT collection will be displayed to the public. In other words, the “Show off” day.

### Roadmap
A plan or timeline for the development and implementation of a cryptocurrency or NFT project.

### Rug pull
A malicious maneuver in the NFT space where artists/developers abandon a project and run away with investors’ funds.

### Shilling
An individual who promotes a particular cryptocurrency or NFT in an attempt to artificially inflate its price.

### Smart contract
A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.

### Soft fork
A temporary split in the blockchain, in which the new chain is still compatible with the old chain.

### Souldbound tokens
A publicly verifiable and non-transferable NFT that represents an individual’s credentials, affiliations and commitments. You can check our latest article to learn more about soulbound tokens.

### Staking
The process of locking up crypto holdings in order to obtain rewards or earn interest. Visit our article to learn more about staking.

### To ape in
To buy a token shortly after the token project launch without conducting thorough research, mainly due to FOMO.

### Token sale
The sale of a cryptocurrency or NFT to the public, often used to raise funds for development.

### Utility token
A type of cryptocurrency that represents a certain amount of access or use of a product or service.

### Volatility
The fluctuation in price of an NFT.

### WAGMI
Short for “We are all gonna make it”. Used to foster optimism in a community of investors regarding a specific project.

### Whale
An individual or entity that holds a large amount of a particular cryptocurrency or NFT.

### Whitelist
A list of approved individuals or entities that are allowed to participate in a limited NFT sale or event.

### Whitepaper
A detailed document that outlines the features and specifications of a cryptocurrency or NFT, often used to attract investors or users.

### Yeld farming
The practice of holding and staking a cryptocurrency or NFT in order to earn additional tokens through interest or rewards.



A list of the most commonly used terms and expressions in the NFT space.

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The ultimate glossary of NFT terms

![Renting-NFT.png](https://rarespot.blob.core.windows.net/%24web/strapi-assets/Renting_NFT_887f061824.png)

Have you ever dreamed of owning an NFT from the [Bored Ape collection](https://opensea.io/collection/boredapeyachtclub)? You must be thinking that everyone who shows off with their [CryptoPunk](https://opensea.io/collection/cryptopunks) NFTs must be either super lucky to buy early or swimming in money. Well, that is not exactly the case. There is an emerging secondary economy in the NFT industry. Here, is everything you need to know about renting NFTs.

### What is NFT Renting?
Conceptually it is quite similar to renting a physical object like a car or a DVD. You possess it for a limited amount of time and enjoy the benefits meanwhile. One major difference is that **NFT renting is executed via smart contracts**. The lender and the borrower agree on terms and conditions such as the duration, price, and utilities. When the contract expires, the NFT is returned back to the original holder.

### Why would anyone rent NFTs?
There are obvious benefits for both sides. From the lender’s perspective, renting NFTs is a **source of passive income**. NFTs are quite high in demand but to possess them requires a significant financial investment. So, in general, the NFT market is quite exclusive. Moreover, many NFTs come with other utilities such as profit sharing, tickets to events, community airdrops, and voting rights in a DAO. **The opportunity cost of not using these utilities is tremendous**. Therefore, if an investor is not interested in taking advantage of the utilities but would like to hold the NFT for future benefits, renting is a great option. 

On the other hand, the incentives behind being a borrower vary widely. 
- The most common reason is the **high cost of attaining NFTs**. Not everyone can pay thousands of dollars for a digital asset or utility. However, many can afford to rent NFTs for a shorter period of time and experience being a holder. 
- Another valid reason is **to be afraid of purchasing an obsolete piece**. The NFT market is evolving rapidly and trends can change swiftly. Paying a high price for an asset that can go old repels many investors. The fear of “fast fashion” creates a need for renting NFTs. 
- Also, some borrowers desire to **try the experience before buying in**. Having a chance to experience the community and utilities before investing is helpful to make a satisfactory decision. 

### Different Types of NFT Renting
All rental procedures are processed via smart contracts. However, the main distinction is the use of collaterals.

#### Collateral-Based Renting:
Similar to paying a deposit on a house, some NFT lenders ask for **collateral**. Mostly the value of the collateral is quite high (higher than the price of the NFT).  On top of this, the renter must pay the rental fee of the NFT and its utilities. Due to the collateral prices and the complexity of the contract, this renting method is preferred less among borrowers. 

#### Collateral-less Renting:
Also known as collateral-free renting, this method takes advantage of **wrapped tokens**. With collateral-less renting, the NFT never actually ends up in the borrower’s wallet. Instead, a wrapped token of the borrowed NFT is minted. A wrapped token is an asset designed to be utilized on a non-native blockchain and is backed by the original NFT. When the contract expires, this wrapped token is destroyed by the smart contract. Thanks to this technology, borrowers are not required to deposit any collateral. So, they can enter the deal more freely.

### Where can I rent NFTs?
There are NFT marketplaces enabling their rentals. These platforms use Defi and blockchain technologies to facilitate secure transactions and guarantee the truthful execution of smart contracts. The most known ones are [reNFT](https://www.renft.io/), [UnitBox DAO](https://unitbox.io/), and [IQ Protocol](https://iq.space/) with huge databases of lenders and borrowers.

### How NFT rentals are changing GameFi?
NFT rentals can help the GameFi industry grow exponentially. The play-to-earn business model has been rewarding successful gamers with NFTs from wearables to character skills. Selling such items are common practice. However, renting NFTs while not playing can be more profitable. For instance, an American player can rent his/her NFT items while sleeping which is daytime in Europe. This could create a stream of **passive income for gamers**. Considering these, renting NFTs is likely to be widely common in the GameFi sector.


A closer look on types and benefits of NFT renting, and the marketplaces where anyone can rent their NFTs.

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Renting NFTs: the secondary NFT Economy

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### What is an NFT Airdrop?

Airdrops are giveaways sent to personal crypto wallets. In general, the airdrop distributions are unsolicited, meaning that the **transactions are done voluntarily**, without an explicit economic intention. However, being free of charge does not imply that airdrops are selfless acts of charity. Indeed, these kinds of giveaways proved to be a **strategic marketing move** mainly to:
- reward users for the early adoption of a project;
- share additional value with the community of a project;
- increase awareness and attain loyal customers. 

A real-life analogy for airdrops is free samples offered in shops or in the street. Imagine leaving the office late, hungry from overworking. Then, you see that the new cafe down the road is delivering free sandwiches. You go to take a bite and get convinced to stop by more often. The idea behind the airdrops is quite similar. Either exposing you to an emerging blockchain ecosystem, introducing tokens, or getting contact info for further use; an airdrop distribution is an effective way of reaching out and communicating with a target group.

### Different types of airdrops

An airdrop can give away tokens, NFTs or other utilities. However, the distinction between different airdrops is mostly done regarding the procedures followed by the receivers. The two main clusters are **active and passive airdrops**. Though the name is quite self-explanatory, passive airdrops refer to giveaways for which receivers are not expected to have any engagement. Whereas for active airdrops, receivers are asked to follow some steps such as joining discord servers, liking, tweeting, or inviting friends. Then, the active airdrops are given as a reward. Apart from these two general clusters, there are subcategories for airdrops.

- **Standard Airdrops.** They are in the passive airdrops cluster. Mostly the wallet address and basic communication information are all you need to give. Due to the simplicity of the distribution process, standard airdrops are high in demand and difficult to find. 
- **Bounty Airdrops.** They fall under the active airdrops definition. Bounty airdrops are rewarded when a user performs certain tasks. Generally, these tasks require the user to raise awareness of a project by retweeting, discord engagement or inviting a friend. 
- **Holder Airdrops.** Holder airdrops are designed to compensate existing holders of a token or an NFT. Investors who hold a significant amount receive the airdrop. The process is mostly passive. Since wallet addresses and ledger distributions are transparent, airdrops can be sent without prior notice. 
- **Exclusive Airdrops.** Exclusive airdrops are distributed to a specific group of people, selected on a specific criterion. The difference between the exclusive airdrops and the holder airdrops is that, for the prior, the selection is not based on how many tokens are held. One of the most common criteria is how much time is spent engaging with the project such as the time spent on the Discord server or the number of posts created. Considering these, exclusive airdrops are much closer to the active airdrops cluster.
- **Raffle Airdrops.** Finally, raffle airdrops are rewarded randomly when the demand for the airdrops exceeds the supply. If the project is granting a hundred airdrops for retweeting about them and a thousand complete the task; hundred people are selected randomly to get the raffle airdrops. So, to receive them luck plays a big role!

### How much does an NFT airdrop cost?

The amazing thing about airdrops is that.. they are free! The literal meaning tells the story: imagine NFTs falling to your hands from the air. Well, you might need to complete some tasks before actually receiving the airdrop, but that is about it. If you are asked for money in return, then it is not an airdrop. If you are looking for upcoming airdrops, just google “Airdrop Calendar” and take note of the dates. Most of the time, the process is quite simple and can be completed in minutes. 

### Things to be careful about

In the crypto world, there are many harm-intended people exploiting their anonymity. Unfortunately, fishing scandals and scams are not exceptions when it comes to airdropping. Sharing your public wallet address should be mostly sufficient. If you are being rewarded for an active airdrop, you might also give your social media account names. However, you should never share your private keys to your wallet or the passwords of your accounts. If you are being asked for private information, that is a big red flag and you should report it. For more information about how you can secure your NFTs and wallets, have a look at our [guides](https://rarespot.io/learn/how-to-secure-your-non-fungible-tokens).




A guide on different types of NFT Airdrops and their role as a marketing activity for NFT projects.

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What you need to know on NFT Airdrops

![what-are-soulbound-tokens.png](https://rarespot.blob.core.windows.net/%24web/strapi-assets/what_are_soulbound_tokens_5242c6a6f7.png)

### What are Soulbound Tokens (SBTs)?

Scams, rug-pulls, and market shakedowns… NFTs, as we know them, are far away from being the core stones of a trustworthy, decentralized society. For now they are mainly used for tokenizing digital art. NFTs are [non-fungible tokens](https://rarespot.io/learn/what-are-non-fungible-tokens) meaning that you cannot sell an NFT partially. More characteristically, NFTs are unique. Their blockchain codes are one of a kind and are not changeable. All of these features make NFTs the new star of the crypto world: they can be used for digital certificates such as mortgages, rental contracts, and for other kinds of properties. All these monetary contracts seemingly determine the scope of NFT applications. Yet, Vitalik Buterin, the founder of the Ethereum ecosystem, came up with a revolutionary idea. What if NFTs could represent something more about you and not only your bank account? With this question in mind, Buterin along with some others published a [white-paper ](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4105763)in May 2022, arguing that NFTs can play a non-financial role in the future. According to this paper, a special type of NFTs called **Soulbound tokens (SBTs)** can help us transfer the legitimacy of our centralized societies to the blockchain network.

### How do Soulbound Tokens work?

Before we dive into the definition of a SBT, let’s talk about trust. The idea of civilized trust comes from identity and verification. We sign a contract if our counterpart is credible, and we agree on a check if we think that the deposit will follow along. In the crypto world, where everyone is just an IP address, trust means something else: it means transparency and traceability. Soulbound tokens aim to combine these distinct worlds. Essentially SBTs are identity and reputation tokens. The name comes from the video game, Warcraft. In this game, players cannot sell or give away their soulbound items; literally, these items are **bound to the souls of the  gamers.** With a similar idea, soulbound tokens cannot be transferred or sold to other parties, they can only exist in the wallets of their owners. 

#### Soulbound Tokens use cases

At the core, **SBTs are non-transferable NFTs**. Their applications are beyond imagination. Since every bit of information about you can be broken down to pieces, like in profiling, these pieces can be represented by soulbound NFTs. For example,   your passport, residency, birth data, education background, work records, cultural beliefs, orientation, hobbies, experiences can have a unique, non-fungible, non-transferable blockchain code associated with itself. You keep these SBTs in your own wallet, and every time a third party needs to process information about you, it can verify and proceed in seconds, very fast and efficiently. Imagine checking-in to a flight, you need to pre-check in your phone before the flight, then they check your ticket at the entrance and your passport at the door. These procedures take hours. If SBTs were used for verifying your ticket and identity, it would take about five minutes, without any human error. This is a huge step forward. **Any identification and verification can become transparent and public, and can be done anywhere, anytime.** There can be a world without time-killing bureaucracy. That is innovation.

#### How would the SBT system work?

It is quite hard to answer this question now. However, we can imagine a scenario where SBTs will be used most possibly. Imagine that you graduate from college. Then, an SBT representing your degree is sent to your wallet by the university. Now, your alma mater and gpa can be verified by your future employers without leaving a space for fraud. Another use-case is for reputation. Via SBTs, being part of an exclusive community can be shown in the digital world. Besides these, attending events, visiting museums, and health records are on the endless possibilities list of SBTs sent to you by institutions.

#### What are the downsides to SBTs?

Yet, solutions come with problems. Not only the cynics but also Buterin himself raised some concerns:
- Issue number one is that you own your SBTs forever. Even if that is not part of your identity anymore, or if it has changed in any way, you cannot alter the NFT corresponding to it. 
- Secondly, it is in the blockchain ecosystem, meaning that SBTs are fully transparent. You may want to hide some information or exercise your right to be forgotten but with blockchain, your information is permanently public.
- Last but not least, harm-intended SBTs can be sent to your wallet, without your consent. Due to the nature of blockchain, your crypto wallet address is open to transactions without requiring your acknowledgement. If someone knows your wallet address, they can send you NFTs, coins, and tokens. For instance, an NFT considered inappropriate or shameful can be sent to your wallet. These NFTs could include life threats, hate speech, malsoftware, or viruses. And they stay in your wallet forever.

#### How to address SBTs problems?

The authors of the white paper offer some technological solutions to address these issues. They suggest that individuals should be able to hide and delete their SBTs and update the info on some personal tokens. This way the consent and privacy of the individuals will be taken into account.
Buterin and his colleagues also come up with an idea for identity recovery as well. If you lose your password to your wallet or pass away, your pre-chosen guardians can vote for the recovery of your wallet for you. Of course, this [social recovery system](https://vitalik.ca/general/2021/01/11/recovery.html) has a great potential for betrayal and drama. However, for now, it feels good to know that your SBTs would not disappear if you forget your credentials.

### What is the price of an SBT?

While crypto coin prices vary from a tenth of a cent to thousands of dollars and the cost of an NFT from a famous artist can skyrocket, there will be less and less volatility for SBTs. Remember, **the main purpose of soulbound tokens is to create a trusted digital identification for individuals**. In a way, it is like creating a database built on blockchain. So, essential SBTs for your health records, alma mater, and birth data can be free of charge or at insignificant prices. Here, you are the owner of your data. While putting it on blockchain, you offer a service as well. So, the cost should not be a concern in this case. However, SBTs could also be used as **reputation tokens**. Then, not the SBT itself but what it represents can be costly to attain. For example, if you are part of an exclusive community and would like to show off with that, its SBT might come with a significant price. However, SBTs are expected to be accessible for everyone with very low costs if any. 

### When will SBTs be available?

It is important to note that SBTs do not fully exist yet. All these questions and suggestions are rhetorical. However, they are among the most important non-financial blockchain potential applications.  SBTs being implemented as a database structure, can clear the path towards a decentralized society. With the crypto market, we met with decentralized money, with NFTs we met with decentralized possessions, and now with SBTs, the souls of Web3, we might be meeting decentralized data. And who knows, maybe it was the last missing piece of the puzzle for a better future?


“NFTs can represent much more of who you are and not just what you can afford” - Vitalik Buterin



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What are Soulbound Tokens?

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As the NFT market keeps growing, so are the innovations connected to it. One of the latest use cases introduced into the NFT niche is **the fractional ownership of NFTs**, a new frontier that adds to the fun and ease of use of most popular NFTs. 

Most of the NFT collections of high rarity, like the [Cryptopunks](https://www.larvalabs.com/cryptopunks), are expensive to get hold of. [Blue-chip](https://rarespot.io/learn/what-are-bluechip-NFTs) collections like this one were once acquired at a discounted price by early adopters. Fractional NFTs (also known as F-NFTs) represent a way for new entrants into this space to own a piece of these expensive NFTs creating a smaller microeconomy of fractionalized digital assets.

#### What is the Fractionalization of NFTs?
The concept of fractional ownership has been around for decades, applicable to almost any asset as a form of investment strategy. Fractional ownership implies that the cost of a specific asset is divided in many fractions, that are shared among different individuals – also known as shareholders. 

This same concept has been recently adopted into the NFT space. **Fractional NFTs are whole expensive NFTs divided into smaller fractions, giving the ability to those interested in owning parts of the asset to claim ownership of a piece of the same NFT**. Instead of a whale owning entirely an NFT, fractionalization makes it possible for more investors to own a particular NFT at a lower price. With fractionalization, expensive NFTs like the [Cool Cats](https://www.coolcatsnft.com/), [Doodles](https://doodles.app/), or [Bored Ape Yacht Club](https://boredapeyachtclub.com/#/) (BAYC) can be owned in parts.

Fractionalization of NFTs is possible with the aid of a smart contract. This is done by issuing a number of – fractional – tokens linked to the whole original parent NFT. Each individual owning one of these fractional tokens owns in turn a portion of the NFT, that can be traded or exchanged on secondary marketplaces.

One of the most well-known examples of fractional NFT is the "Doge" meme NFT, which sold for nearly $4 million in June 2021. PleasrDAO bought the meme and then [fractionalized](https://decrypt.co/80337/pleasrdaos-fractionalized-dog-nft-now-worth-336-million) it into 17 billion shares. This allowed, for a few dollars, to own a piece of this asset, that reached a valuation of several hundred million dollars.

### What Are The Perks Of Fractional NFTs? 

#### Greater efficiency and higher Liquidity
NFTs value comes from their rarity, making them illiquid compared to other tradable digital assets. Fractionalizing NFTs into smaller divisions allow a greater number of investors to acquire assets collectively. This, in turn, makes NFT more tradable and easier to sell off quickly on marketplaces, due to the high liquidity. In other words, if you have a highly-priced NFT collection without a buyer, you may consider fractionalizing it into many parts to achieve a desired level of affordability. Not only has fractionalization made NFTs more attractive to investors, but it has also effectively resolved the liquidity issue.

#### Democratising ownership
Owing to the high cost of these popular NFTs, it is obvious that not everyone will be able to acquire these entirely. This keeps smaller investors and retail collectors away from entering more actively into the NFT market. Fractionalizing expensive digital assets balance the price impact, allowing the ownership of NFTs to be affordable and democratic.

### Fractional NFT platforms

There is a set of interesting platforms allowing the creation and purchase of  fractionalized NFTs. This list includes: 

- [Otis](https://www.withotis.com/): Otis is a platform for investing in fractional NFT collectibles and art. Aside from this, Otis enables users' real-time trading and allows a seamless acquisition of fractional NFTs. 

- [Unicly](https://www.unic.ly/): Unicly is the go-to platform for investors who want to turn their NFT collection into a tradable asset with instant guaranteed liquidity. It also provides a medium for NFT tokenisation with bidding and staking features.

- [Fractional.art](https://fractional.art/): On the fractional.art platform, Investors can buy, sell, and mint fractions of NFTs. It is similar to the Unicly platform, except that it does not provide bidding and a staking option.

### Are Fractional NFTs Risk-Free?

Fractional NFTs are undoubtedly an applaudable way of investing in valuable rare NFTs. They are helping to transform the NFTs space into a more liquid market, making it easier for more individuals to join the investment opportunities that comes with it.

Nevertheless, fractionalized NFTs aren't risk-free. Like the traditional NFTs, they also face some limitations, such as publicity rights, contracts, and intellectual property rights. As regulation is gradually coming on board, F-NFTs are more likely to be strictly monitored as their creation (division into fractional tradable tokens) could be opined as issuing Illegal Initial Coin offerings (ICOs). Thus, collectors or traders should keep up with emerging decisions on NFTs regulations.

Hester Peirce, the SEC commissioner, once expressed a concern during the [Security Token Summit in 2021](https://rollcall.com/2022/01/25/secs-peirce-says-agency-guidance-on-nonfungible-tokens-needed/) that the agency may see fractional NFTs as securities in the future. However, no official legal or regulatory standards on NFTs have been released nor published by the SEC (US Securities and Exchange Commission) or any regulatory body.

### Conclusions

We will undoubtedly witness more intriguing use cases as NFTs continues to soar in growth, popularity and demand. Although fractional NFTs are still an emerging concept, there is a solid chance for these to become the next big thing in the ever-expanding NFT market. Greater liquidity is achieved by NFT fractionalization, opening up an infinite number of investing strategy options. By allowing access to a much larger pool of potential investors, F-NFTs could drive the upcoming wave of monetization of digital assets.




A deep dive on what fractional NFTs are, what are their benefits and their risks. 

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What are Fractional NFTs? 

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As a sub-trend of the broader NFT space, staking non-fungible tokens is gaining a lot of attention from crypto enthusiasts these days. Let’s have a look at what NFT staking is. 

### What is NFT Staking?
**NFT staking is the process of locking up NFTs on a platform or a protocol, earning rewards in exchange for this action.** With this process, instead of simply holding NFTs and waiting for prices to go up, NFT holders can earn passive income while still retaining ownership of their tokens. 

Similar to how we cannot stake every cryptocurrency, it is not possible to stake all kinds of NFTs. Different NFT staking platforms have different requirements which are important to keep an eye on before deciding to stake NFTs. This is a new opportunity for NFT holders to monetize their digital assets, which in turn increases the demand for acquiring stakable NFTs.

### How does NFT Staking work?
The concept of staking assets and earning rewards has been introduced with the Proof-of-Stake (PoS) consensus mechanism, used in most blockchain networks. These blockchains rely on a global network of validators who verify the transactions on the chain and keep the network secure. To prove their participation in the network, **validators pledge pre-purchased coins and keep them locked for a certain period.** They will then receive rewards in the form of the network’s native cryptocurrency in exchange for staking cryptocurrencies and verifying transactions. 

This same concept has been expanded also to the NFT space, where NFT holders can earn rewards in the exact same way by dedicating their NFTs to a blockchain network. 

### NFT Staking rewards
The reward structure offered for staking NFTs differs from platform to platform, where the amount of reward will be calculated based on factors such as:

- **Staking period**. There are collections that allow users to lock-up their assets for an indefinite period, while others have strict rules on how long tokens can be staked.
- **Annual percentage yield (APY)**. Some platforms might also display the expected token rewards (e.g. 10 tokens per day) that can be earned during the staking period instead of a specific APY.
- **Rarity and number of NFT staked**. Some projects will offer higher APY rewards for staking multiple NFTs or those with higher rarity scores. 

Most of the time, rewards will be paid in periodic intervals in the form of utility tokens. Stakers can exchange or sell these reward tokens for other cryptocurrencies and fiat money. Some staking platforms also have decentralized autonomous organizations (DAOs), where voting privileges are given as a form of reward, allowing NFT stakers to participate in governance tasks of the platform.

### Best platforms for NFT Staking
As the NFT staking trend is gaining traction, the number of platforms that provide this service is increasing. Let’s look at some of the best NFT staking platforms. 

#### MOBOX
[MOBOX](https://www.mobox.io/#/) is a Play-to-Earn (P2E) gaming metaverse built on Binance Smart Chain. It combines DeFi (Decentralized Finance) yield farming strategies with NFTs and allows users to stake NFTs. Yield farming is an investment strategy that rewards users for lending out or staking cryptocurrencies. Apart from including this strategy and rewarding users for their engagement and gaming activity, MOBOX rewards users for staking NFTs. 

MOBOX metaverse is called MOMOverse and the NFTs of this space are called MOMOs. When users stake NFTs on MOBOX, they can mine native governance token MBOX as a reward. The mining power will increase when the rarity of the staked NFT is higher, which in turn provides more MBOX tokens.

#### Splinterlands 
[Splinterlands](https://splinterlands.com/) is a collectible card game built on the Hive blockchain network. Players can buy and sell digital cards with unique NFT identifiers which can also be used in battles inside the game. Splinterlands is also set up as a DAO on Binance Smart Chain. As a result, users can stake the native token Splinter Shards (SPS) to earn rewards, participate in governance, and get special offers and bonuses. 

In addition to staking SPS tokens, users can also stake NFT cards in liquidity pools and earn staking rewards. Liquidity pools contain locked funds for providing liquidity to the traders. When users stake NFT cards in liquidity pools, they will earn rewards for helping ease the transactions between buyers and sellers.   

#### NFTX 
[NFTX](https://nftx.io/) platform allows its users to create ERC20 tokens that are backed by NFT collectibles. Users will first deposit their NFTs into the NFTX vault and mint ERC20 tokens, which are also called vTokens. Users can stake these tokens to get staking rewards and purchase NFTs from the NFTX vault. Additionally, holders can also deposit their vTokens in automated market makers to provide liquidity for other users and earn rewards. 

#### Doge Capital
[Doge Capital](https://thedogecapital.com/) is a collection of 5000 pixel-art NFTs minted on the Solana blockchain network. The holders of these NFTs will get a membership of the Woof club along with exclusive perks. Doge Capital offers a staking program that allows users to stake these NFTs and earn daily rewards in the form of DAWG tokens. When a user stakes one NFT, he can get a daily reward of 5 DAWG tokens. DAWG is the platform’s native utility token and is listed on multiple exchanges so that stakers can exchange their rewards with other crypto or fiat money. 

#### Polychain Monsters 
[Polychain Monsters](https://polychainmonsters.com/) is a digital collectible and gaming ecosystem. The platform contains animated digital collectibles called Polymons which have different traits and varying levels of scarcity. Users can acquire the Polymon NFTs through digital booster packs. Holders can stake them on the platform and earn weekly rewards in the form of the native cryptocurrency called PMON.

### Final thoughts
NFT staking is the most beneficial concept for Play-to-Earn and other gaming ecosystems, as the players can borrow the staked NFTs to participate in a game when they cannot afford to buy them. However, this concept has been expanded also to pure trading activities behind the NFT space, where it will be interesting to see where this innovation will take investors' strategies.




A focus on what NFT staking is and how to earn passive income from staking non-fungible tokens.

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A guide to understand NFT Staking

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### What is wash trading?

We refer to wash trading as **the practice where the same actor sells and then purchase back a specific asset, usually within a short period of time, to influence its market activity and price**. Is a technique of market manipulation that, particularly in the NFT space, is facilitated by the lack of personal identification needed when connecting wallets to buy or sell tokens.

### How does wash trading work? 

Although wash trading techniques may vary, the following basic example can help us grasp the concept. Let’s consider a scenario with one investor owning two wallets, a *seller wallet* and a *buyer wallet*, with $ 1 million stored in the last one.
- Through the seller wallet, our actor decides to mint an NFT and sell it for $ 1 million on a marketplace.
- With the buyer wallet, the same actor buys the NFT for this same amount.
- Finally, the actor transfers the NFT back to the seller wallet. He then decides to sell it again, for a higher price, on a marketplace.

In this scenario, no real transaction between two different parties happened. However, at the end of the loop the value of the token **is now influenced by the fake trading activity**. Whenever the trader decides to sell again this token on the market, its price will now be aligned with – or higher than – its past transaction value. In this example, even if the token is sold with a high discount – e.g. 90% - our actor would still profit $ 100K as its value has been influenced by the past trading activity. 

### How big is NFT wash trading?

In a [report](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/) published from Chainanalysis in 2021, the company detected **262 users** who have sold an NFT to a self-financed address (funded either by the selling address or by the address that initially funded the selling address) **more than 25 times**. The analysis was based only on trades made in Ethereum and Wrapped Ethereum, therefore leaving out potentially other wash trading transactions. Of the total users detected, **110 of them resulted in a total $8.9 million profit** performing wash trading activity.

One of the most notable examples of this practice in recent years is a wash sale case performed in October 2021 on [Cryptopunk 9998](https://cryptopunks.app/cryptopunks/details/9998). The token was sold for 124,456 ETH and, once the ETH used for the purchase have been transferred to the seller, these were immediately returned to the buyer to repay the loan used for the transaction. The seller then put the token on sale in the market for 250,000 ETH, basically doubling its value. This was a significant increase considering that, prior to this activity, Cryptopunk 9998 was traded at a range between $300,000 and $400,000. 

### Is NFT wash trading illegal?

The answer to the question is: not yet.

While wash trading on conventional financial assets is illegal under many regulations, in the new realm of non-fungible tokens this practice is still not properly regulated. Given the early stage of the market, it is still hard for lawmakers and regulators to enforce instances where wash trading occurred involving non-fungible tokens.

### How to spot wash trading?

The good news for investors is that, through a bit of analysis, there are specific clues that can help identify wash trades. The first one occurs **whenever the same wallet has purchased a specific NFT more than once**. This is a first good sign that we are in front of a wash trading, and it is something that can be easily verified through the activity history of the token within the marketplace itself.

Another clue of wash trading happens when there are **transfers of crypto from the seller wallet to the buyer wallet**, a clear sign that the sale is self-funded. Although a bit more complex to check than the previous case, tools like Etherscan comes handy as they enable users to look for wallets’ transaction history through public blockchain data. 

### Final thoughts

NFT wash trading is an activity that all investors should carefully monitor when making their investment decisions. Considering the early stage of the market as well as the lack of solid historical data on most projects, activities like this one can easily manipulate trading analysis. At Rarespot, we also believe that marketplaces have a pivotal role in helping reduce this practice, as they could highlight more efficiently clues of wash trading - like the ones mentioned - within the transaction history they already expose.

A closer look on what is wash trading, how it influences the market and the clues to spot wash trading activities.

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What is NFT wash trading?

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In traditional finance (or TradFi), **blue-chip** stocks refer to safe investments with long-term steady returns. These are generally related to solid, well capitalized companies with a strong track record (Amazon, Apple, Tesla to name a few).

*Fun fact: the etymology of the word can be traced back to poker. In 3-colors poker sets with red, green, and blue chips, the third hold the highest value when compared to the other colors.*

With the growing popularity of NFTs as new investment assets, the concept of blue-chips has been adopted also in this space, even though with significant differences. Let’s find out.

### Blue-chips in the NFT market
**Time** is a key point when referring to blue-chip NFTs. While in traditional finance these refer to long time active companies, the same standard is barely applicable in the NFT space. Looking at [Cryptopunks](https://opensea.io/collection/cryptopunks) or [BAYC](https://opensea.io/collection/boredapeyachtclub) for example, two of the most successful collections so far, they’ve only been active since 2017 and 2021 respectively.

This means that, when referring to blue-chips NFTs, these should be considered as projects **likely to reach (or keep) a high valuation in the future**, meaning that they will behave like a traditional blue-chip stock in prediction. But what are the criteria to define whether a project has the potential to become a blue-chip?

### What makes an NFT project a blue-chip?
Among many others, there is a set of foundational criteria that helps identify which project has potential to become a future blue-chip. Although the following are mainly interpreted for the NFT art space, they are also applicable to all the emerging forms of NFTs spreading today.

#### 1. The art
The art refers to the particular style of a project, likely to shape different interpretations of it. The uniqueness of the artwork, compared to existing initiatives in the market, is a key factor to drive attention and create hype. The pixel style of Cryptopunks is an iconic example, which has been referenced from other successful derivatives such as [Cyberkongz](https://opensea.io/collection/cyberkongz) and [Cryptoadz](https://opensea.io/collection/cryptoadz-by-gremplin). Similarly, the vector style of BAYC has been replicated by other well-known collections such as [Lazy Lions](https://opensea.io/collection/lazy-lions) or [Hall of fame Goat Lodge](https://opensea.io/collection/hall-of-fame-goat-lodge).

#### 2. The artist
The track record of the artists, their own style and how active they are in promoting their art are all key factors that influence the value perceived by the community. Collections such as [Cool Cats](https://opensea.io/collection/cool-cats-nft) (by Clon), [Creature World](https://opensea.io/collection/creatureworld) (by Danny Cole) and [Doodles](https://opensea.io/collection/doodles-official) (by Burnt Toast) are examples of concepts that became unique thanks to the great job done by their artists to promote their value. On another level, [VeeFriends](https://opensea.io/collection/veefriends) is among the best examples of a collection promoted by a personality outside the NFT art space (Gary Vee). The list of popular creators in the space keeps growing daily, with artists such as [Fewocious](https://twitter.com/fewocious), [Takashi Murakami](https://twitter.com/takashipom) and [Markus Magnusson](https://twitter.com/MotionMarkus).

#### 3. The developers
Except for notable examples such as BAYC — created by a partially anonymous team, the core development team is an essential indicator of a project success, as it is responsible for the development of the smart contracts and the utility behind the NFTs.

A well-respected development team is a good sign of how solid the initiative is and what is the level of quality that the community can expect from its long-term roadmap.

#### 4. Utility
Utility refers to **the actual value that owning an NFT brings to the owner**. There are many types of utilities offered by NFT projects. Below the most common ones.

- **Yield tokens**. Many communities offer tokens that will be dropped to collectors holding their NFT over the long term. Sometimes, this requires owners who receive tokens to stake their NFTs in a liquidity pool. The APE coin [airdrop](https://techcrunch.com/2022/03/16/bored-apes-nft-project-gets-official-apecoin-token/?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMC9isKcU8Hm0WSFDqA8WbHTmY8tXlchCcPYmIQ8AGtvVQB6TtoUuNINt6LExa5PFXyNwIAFXEsh26PruecZRN7bc0bEnHoEKoj8KvkZQFJici9qwvjot4IDlF_KBObtn_gkkO5w3psXzBaJAqXCOF5RIfpM9K-3ZWQxklsIPj4q&guccounter=2) is probably one of the latest notable examples of this case.

- **Token-gated merchandising**. Sometimes projects release exclusive merchandising to holders of their NFTs as an effective medium to create awareness.

- **NFT drops**. It is common for NFT holders to receive additional NFTs dropped to their wallets, simply because of their ownership. Collaborations among initiatives are also frequent, where two or more communities are connected by rewarding holders with a second drop of the complementary project.

- **Game related tokens**. A great form of utility is the one for holders of games related NFTs, where these give a particular benefit to users within the game itself (other than being able to display their NFTs). [Axie Infinity](https://axieinfinity.com/) is a great example in this sense as a form of Play to Earn gaming NFT, providing holders with in-game power ups and benefits.

- **Real life events**. Access to exclusive events or parties is also a usual form of utility. The BAYC example comes again into play here with exclusive parties organized for APEs holders. Similarly, tickets rewarded to VeeFriends holders to access VeeCon events is another well-known case.

#### 5. Floor price and sales volume
The floor price is **the lowest price for an NFT within a collection**. The higher the floor price, the more valuable the collection is likely to be. However, when considering potential blue-chips, it is worth looking not only at the floor price value but also at the growth (%) at which it is increasing. This is a first good indicator of how the collection is performing overtime.

Floor prices should not be considered as a stand-alone metric. Anyone can buy NFTs and then set their price higher than the purchase one. But if no one is then buying these NFTs, there is no real increase in project value. Therefore, **sales volume** is a key metric to validate if a project floor price represents the real value. When floor prices increase, the number of transactions is likely to decrease overtime but with higher values. If this trajectory is confirmed, it could be a good sign to spot future blue-chips.

#### 6. Community
**Community is the foundation of any NFT initiative**. A community is the mirror of both the excitement around a project and the long-term prospects of it, as people tend to aggregate where there is real value. A community itself can be considered a form of utility, as members can access to other members of the community and bond around their personal interests. Like in a reinforcement loop, the more the community bonds together, the more its strength around the project is visible and contributes to his value.

The endorsement from celebrities can also have a great impact on the community. There are many examples of celebrities buying notable collections, BAYC being one of them. However, it is important to put this into context and understand whether new members join the community mainly for short term returns or as long-term holders.

### Final thoughts
The lack of historically long track records for the top NFT projects on the market makes it hard to predict whether a collection is likely to become (or keep) a blue-chip standard. Having a good set of metrics to consider when evaluating their potential — although not exhaustive — surely helps to reduce the risk of incorrect valuations.

A deep dive on what bluechip NFTs are and the criteria to spot projects with potential to become the next bluechips.

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What are bluechip NFTs?

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NFTs or non-fungible tokens have created quite a buzz in the crypto world. NFTs became widely popular because they create authenticity and give value to the assets. These assets or NFT collectibles cannot be replaced and gives ownership to the NFT creators and protects the copyright of the products. NFTs have become widely popular and many enterprises and businesses are leveraging their benefits. In this article, we are going to discuss some “real-world” use cases of NFTs. Let’s have a look.

### Top Use-Cases of NFTs

#### NFT Arts
Digital art NFTs are perhaps one of the best examples of NFT use-cases. Tokenized digital art creates authenticity and helps to transfer the ownership of the art to the purchaser. Online digital art could be easily downloaded and copied. Blockchain ledger technology makes it impossible to copy or plagiarize the art and retains the originality of the work. NFTs validate the art and protect artists from copyright infringements.

In 2017, “CryptoPunk” a digital artwork of pixel art characters [recorded](https://economictimes.indiatimes.com/markets/cryptocurrency/cryptopunk-nft-sells-for-11-8-million-at-sothebys/articleshow/83420998.cms) a sale of $11.8 million at Sotheby’s auction house. It was one of the earliest examples of NFT art sales. Recently NFT arts again came into the limelight in March 2021 when famous artist Beeple sold one of his digital arts for $69.3 million at Christie’s. In March 2021, a column in NFTs in New York Times was [sold](https://www.thewrap.com/new-york-times-nft-560000-sold/) for $560,000.

#### Digital Collectibles
Digital collectibles are another popular NFT product where people can collect rare and popular digital items. In 2017, [CryptoKitties](https://www.cryptokitties.co/) was released which is a digital game consisting of cute kittens of different traits that seemed very interesting to buyers. These virtual kittens had different looks, eye colors, and buyers could even breed them to produce more kittens only by the touch of a button.

NBA sport is a good market for NFT collectibles. NBA Top Shots developed by [Dapper Labs](https://www.dapperlabs.com/) have created more than $230 million dollars worth of NFTs and sell NBA sports video highlights to their fans. Another great example of NFT collectible was when Jack Dorsey, the founder, and CEO of Twitter [sold](https://v.cent.co/tweet/20) his first Twitter for $2.9 million.

#### Gaming
Gaming is a multibillion-dollar industry with [more](https://www.statista.com/statistics/293304/number-video-gamers/) than 3.4 billion gamers worldwide. Blockchain-based NFTs have a huge potential in the digital gaming industry and cryptocurrencies can be used to buy in-game purchases and create a platform for online gamers. Online games need accessories, tools, weapons, skins that can visually enhance the games, and avatars to customize the games.

NFT game applications like Minecraft and Warcraft are specially designed that allows users to create their virtual worlds. These NFT applications give a unique experience to online gaming. Other gaming products like [Battle Pets](https://www.battlepets.finance/#/) and [Axie Infinity](https://axieinfinity.com/?__cf_chl_managed_tk__=pmd_47c1da2ccf6b104236479bf73bb7f35d44d661ba-1629191895-0-gqNtZGzNAuKjcnBszQei) provide special gaming gadgets and pets with unique features that can be traded in the NFT marketplaces. [AnRKeyX](https://www.trellix.com/SAE/blockpagegc.html?id=2862022162550&ProductCode=WC) is a DeFi gaming platform where gamers can participate in online games and earn NFTs.

#### Real Estate
NFTs can be used for the purchase and sale of real estate both in the real world as well as virtually. Blockchain transactions eliminate the barriers of intermediaries like solicitors, banks, real estate agents, etc., and simplifies the transactions through the use of smart contracts. Smart contracts expedite the trading process and transfer of ownership. NFT applications are quite popular in virtual real estate trading.

Online platforms such as “ [Decentraland](https://decentraland.org/)” allow gamers to create and sell virtual lands and transfer ownerships with the use of NFTs. Another platform called the “ [Mars House](https://uncrate.com/mars-house-nft/) “ sells virtual houses for NFTs. The ownerships are recorded in blockchain ledgers that create virtual ownership deeds.

#### Music
NFT platforms provide an excellent opportunity for musicians to reach out to a wider audience and sell their music videos, albums, and other NFT products. Musicians can directly auction their videos to their fans and earn NFTs and keep a larger share of the earnings. Earlier, there have been a lot of discrepancies regarding royalty earnings in the streaming platforms. In NFTs, whenever a buyer sells a digital copy of the music video, the artist can earn royalties on subsequent sales.

MediaChain is an NFT platform for musicians that also allows them to track royalty payments. Choon, built on the Ethereum blockchain network, is a music streaming platform. The platform can be used for crowdfunding projects as well as receive royalty payments. In February 2021, musician Per Fredrik Asly, also known as “PelleK” [sold](https://twitter.com/impellek/status/1363876336494907394?lang=en) his NFT album for $160,000 in less than 2 hours. Musician Justin David Blau, popularly known as “3LAU” [released](https://www.forbes.com/sites/abrambrown/2021/03/03/3lau-nft-nonfungible-tokens-justin-blau/?sh=2b17c5ec4643) his album “Ultraviolet” for $11.6 million worth of NFTs. According to a recent [analysis](https://www.musicbusinessworldwide.com/music-related-nft-sales-have-topped-25m-in-the-past-month/), in February 2021, the total NFT sales volume in the music industry has crossed $25 million dollars.

### Final Thoughts
The NFT market is still under speculation but we cannot deny its numerous applications and long-term benefits. The market is evolving and is gaining prominence in diverse industries like music, art, e-sports, gaming, finance, etc. NFTs have a great impact on our daily lives. The COVID-19 pandemic has accelerated digitization and NFTs definitely simplify the process of buying and selling assets on a secure platform. NFT trades are unique, they cannot be hacked, and gives instant ownership to the asset owners. They are not bound by rules and regulations of any central authority and give true ownership rights to the buyers.

NFTs cannot be replaced and this is why it may be one of the reasons why NFT marketplaces attract a lot of art collectors and artists. Even the fashion industry is not lagging behind. Top brands and designers want to collaborate with NFT marketplaces and reach out to their customers. The NFT market is booming and with billions of dollars traded every day, there is a growing need for insurance policies to safeguard the interests of the customers.

A complete NFTs use cases walkthrough. Top cases of applications for NFTs in the real world that could go mainstream.

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What are the top NFTs use cases? A guide into the best NFTs applications

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NFTs or non-fungible tokens have recently generated a lot of buzz with several artists and celebrities wanting to join the brigade and sell their artworks in the NFT market. However, the growing popularity of NFTs has not just allured artists but also bad actors and cyber thieves who wanted to make use of this new digital technology.

In March 2021, users of Nifty Gateway, one of the most popular NFT marketplaces [reported](https://beincrypto.com/nifty-gateway-accounts-hacked-nft-art-heist/) that hackers have stolen NFTs worth millions from their accounts. In addition, these malicious actors have also used their credit card details to purchase new NFTs. This incident led to users questioning the security of NFTs as well as these platforms.

In this article, we look at the difference between fungible and non-fungible tokens and which are the best practices that users must deploy to secure their NFTs.

### Fungible vs Non-Fungible Tokens
Fungible tokens are currencies that can be exchanged with each other and their value will always remain the same. Examples of fungible tokens are Bitcoins and Ethereum. Fungible assets like fiat currencies also work on the same principle. So, the value of one Bitcoin will always be equal to another Bitcoin. The same goes for fiat currencies like the Dollar or EURO.

Non-fungible tokens on the other hand are non-interchangeable which means that they cannot be exchanged for another non-fungible token.

NFTs are non-fungible tokens or digital assets that are not interchangeable or cannot be replaced. They are one-of-a-kind cryptocurrencies that are linked to the blockchain and give proof of authenticity or ownership to the asset. That is why they are rare and used to buy digital artworks, musical videos, and even virtual real estate.

### How to protect your NFTs
Similar to cryptocurrencies, NFTs are stored in crypto wallets. A crypto wallet essentially stores the private key of your digital assets, in this case, NFTs. By storing them online or offline, they provide security and accessibility to your NFTs.

To buy or sell in an NFT marketplace, you need a **software wallet**. A software wallet is a web-based wallet installed on your computer or desktop that holds the private key of your NFTs. A private key, depicted in the form of alphanumerical numbers, allows users to access their tokens. It is the key to unlock cryptocurrencies and losing private keys can subsequently result in the loss of digital assets. On the other hand, a public key is used to send or receive tokens and proves the ownership of digital tokens. In a software wallet, the private keys are stored online which allows you to directly operate in the market. MetaMask is by far the most popular wallet for storing NFTs.

On the other hand, **hardware wallets** like Ledger Nano or Trezor, are cold storages where all the private keys are stored offline. They may be safer compared to software wallets but cannot be used in the NFT marketplaces. Since digital assets in cold storage are stored offline, they cannot be directly used to access NFT marketplaces online. Experts believe that a mix of both software and hardware wallets can ensure a more secure approach to protecting NFTs.

Now, since NFTs are stored on blockchain networks when a malicious actor gets access to NFTs, it becomes practically impossible to reverse the transaction or return the stolen NFTs to the owner. This is because transactions on blockchain are irreversible and immutable. Once a transaction occurs, it is permanently recorded and ownership of NFTs are transferred.

NFT ownerships are controlled by these private keys. So, anyone who has access to these private keys can have access to the NFT wallets. Therefore, it is extremely important to securely protect the private keys with which NFTs are controlled.

### Best practices to secure your NFT account
Here are some of the best practices that can be deployed to secure your NFT account.

- **Security** — Metamask is one of the widely used software mobile wallets for NFTs. It operates on almost all NFT marketplaces like OpenSea or Rarible. Hardware wallets like Ledger Nano can be easily linked to Metamask. Once linked, the private keys including the 12 to 24-word seed phrase can be stored securely in the hardware wallet. Whenever a transaction is requested, it has to be first approved by the hardware wallet using the private key. Other leading wallets to store your digital assets and NFTs include Coinbase.
- **Seed Phrase** — Remember to keep a record of your seed phrase in a safe place. Seed phrases are recovery keywords that can be used to recover your wallet if it is stolen or lost. Paper wallets are one of the most secure ways to store private keys and seed phrases for NFTs.
- **PIN** — As discussed in the earlier section, you need a wallet to buy, store, and/or sell NFTs. Tokens stored inside the software wallets are secured using PIN codes and additional security like 2 Factor Authentication(2 FA). Use PIN codes that are hard to guess. Do not disclose PIN codes to anyone.
- **IPFS** — Using IPFS (InterPlanetary Filesystem) that uses CIDs (content identifiers) can safeguard NFT data from being hacked or lost. Due Diligence — Conduct thorough research before venturing into an NFT trade. Check the NFT platform or the website address before creating an account. Check for typosquatting or phishing attacks. It is also advisable to do a background check on the seller or the artist and see whether they are authorized to sell the NFT products.
- **2 FA**— Unlike usual practices, you do not require to create an account on marketplaces to buy or sell NFTs. Instead, you are required to connect your wallet with the marketplace platform. Always use layered security features like two-factor authentication to secure your account.
- **Distribute Storage** — It is better to distribute your NFT assets rather than storing them in one place to minimize the loss. In other words, you can store your NFTs on multiple hardware and software wallets. For instance, it is a good practice to store the NFTs that you do not need immediate access to on hardware wallets.
- **Watermarks** — Artists can use visible or invisible watermarks to safeguard their products from plagiarism. It is possible to mint an NFT with a watermark and buyers would receive a high-resolution and watermark-free copy after purchasing the NFT.
- **VPN** — Using a VPN (virtual private network) can hide the IP address of the user. With a VPN, your data is encrypted from end-to-end adding an extra layer of security.

### Final Thoughts
NFTs are a lucrative market but it is still in their infancy. The market is vulnerable and is a soft target for malicious actors and needs additional security coverages. Though there has been a lot of talk about non-fungible token insurance, there are no insurance policies available yet.

The NFT market needs constant network monitoring and a robust security framework to safeguard the interests of the NFT token holders.

A simple guide on how to secure NFTs and protect your assets from bad actors, leveraging on crypto market best practices.

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How to secure your NFTs? Best practices to protect your NFTs collections

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Blockchain-based NFTs or non-fungible tokens witnessed a massive surge in sales starting from early 2021. Total NFT sales volume soared up to $2 billion in the first half of 2021 compared to the total sales of $250 million in 2020. According to recent statistics, the total number of buyers in the first quarter of 2021 was 73,000 which was much higher compared to the number of sellers which was 33,000. There were 150,000 active wallets in the first half of 2021 which was 1.5 times more than 2020. In August, [OpenSea](https://opensea.io/), one of the most popular NFT marketplaces, showed a record sales volume of $1.9 billion compared to a monthly sales volume of 8 million in January 2021.

The [statistics](https://www.cnbc.com/2021/04/13/nft-sales-top-2-billion-in-first-quarter-with-interest-from-newcomers.html) indicate the rising popularity of NFTs which has created a scarcity in the demand and supply chain as more buyers are entering the market and showing interest in non-fungible assets.

### How to buy NFTs?
The growing popularity of NFTs has led to an increasing interest in buying NFTs with the intention of investment and purchase. In the first section, let’s look at the initial steps to buy your first-ever NFT and then dive deep into the additional factors that can be considered at the time of purchase.

#### Step 1: Create an NFT wallet
First and foremost, you need an NFT wallet where you can securely store your NFTs. Since Ethereum is the most popular network, you can choose a wallet that stores ERC-721 tokens which are NFT token standards for Ethereum. MetaMask is by far the most popular crypto wallet for storing NFTs. Apart from that, you can use other wallets like Coinbase or Trust wallet. These wallets can be easily downloaded into your iOS or Android phones.

#### Step 2: Link your wallet to the NFT Marketplace
Once you have transferred some tokens into your wallet, you need to create an account and link your wallet to a marketplace where you want to buy NFTs. While choosing the marketplace you need to consider whether the marketplace offers a wide range of NFT products, the popularity of the marketplace, and whether it is fit for your brand. To connect your wallet to the NFT marketplace, it will ask for a password and you will be automatically linked to the market. It may also ask for a signature to authenticate the ownership.

#### Step 3: Buy the NFT
Once you are logged in, you can surf the different collections on the marketplaces. To acquire more details, you can also look at more features like product image, description, and create a banner. In many other platforms, you can check for other attributes, discount codes, or contents that are only visible to the purchaser.

#### Factors to consider before buying NFTs
With the growing popularity of NFTs, several sellers now depict their artwork and sell it across different marketplaces. It is advisable for buyers that are investing in these pieces to consider some of these factors in order to optimize your experience of acquiring your first NFT piece.

- **Marketplace**. It is advisable for buyers to research different marketplaces in order to understand which NFT interests them the most. In addition to this, buyers can also check the popular artists that have listed their artwork on the marketplaces. Furthermore, as a buyer, you can also choose an industry-specific marketplace for trading NFTs.

- **Purpose**. Among NFT buyers, we could consider two main categories. The buyers who invest in NFTs with the intention of receiving returns and the buyers who purchase NFTs with the purpose of owning digital collectibles. Whenever investing in NFTs, buyers may want to consider other factors such as the floor price, total market cap, and trading volume of NFTs. For those who are looking at NFTs as an investment vehicle, they can look at the ROI or return on investment on their NFT asset.

- **Social Media Metrics**. One of the metrics that gives an idea on the prominence of an NFT project is their social media metrics. Buyers can take a look at the latest news and updates on NFTs, and keep a track of social media platforms like Twitter, Telegram, and Discord.

- **Fees**. Some NFT marketplaces charge a fee for the transaction. This fee is called a “gas fee”. Marketplaces charge transaction fees that can be anything between 2.5 to 15%. It is a good idea for traders to learn about the fees before selecting their preferred marketplace.

- **Legal Rights**. Buyers can choose to look at the terms of the smart contracts or the legal rights of the NFT transactions. This includes overseeing whether there is any possibility for copyright violation or plagiarism.

- **Security**. NFT marketplaces are hackable. Both buyers and sellers must follow safety protocols before investing. For more details on how to secure your NFTs, please refer to [this](https://rarespot.io/learn/how-to-secure-your-non-fungible-tokens) article.

### NFT Marketplaces
Below mentioned are some of the leading NFT marketplaces to consider.

- **OpenSea** has been described as the world’s largest marketplace for trading NFTs. The platform is based on the Ethereum blockchain and supports a lot of Ethereum wallets like MetaMask, Coinbase, Trust, etc. The platform claims to have more than 113,000 users and is one of the best places to sell collectibles, domain names that are censorship-resistant, virtual artwork, sports, and trading cards. The platform has featured more than 700 projects including CryptoKitties, Decentraland, Axies, etc.
- **Rarible** is quite similar to OpenSea and allows artists to sell digital artwork. Buyers can bid on the prices and the ownership of the asset goes to the highest bidder. This is a community-owned NFT platform where “owners” hold RARI, an ERC-20 token, the official token of the platform. Every week 75,000 RARI tokens are distributed among the users. RARI token holders can take part in the community governance protocol and earn rewards on the platform. The platform is popular for selling digital artwork, music albums, movies, and books.
- **Sorare** is the best place to sell limited-edition NFT soccer cards. Around 140 sports clubs have participated in the marketplace including Chelsea, Liverpool, Inter Milan, Ajax, PSG, etc. It is the favorite destination for sports fans to buy sports cards from their favorite players. Built on the Ethereum blockchain, the marketplace was launched in 2018. According to [Crunchbase](https://www.crunchbase.com/organization/sorare), the platform sold around $1.8 million in digital cards in December 2020. You do not have to pay any commission for trading at Sorare.
- **Foundation** is an invitation-only platform for artists. To sell NFTs, artists must receive an invitation from fellow participants of the platform. Sellers or creators have to pay gas fees for taking part in the trade. Foundation specializes in selling NFT digital artworks. The platform aims to build a creative community for digital creators, collectors, and crypto enthusiasts. At Foundation, artists can earn 10% royalty for any subsequent sales on the NFT assets.
- **SuperRare** is also based on the Ethereum blockchain and traders must collect Ether coins to participate in the platform. The main focus of SuperRare is to provide a marketplace for selling rare single-edition artworks. SuperRare works just like an Instagram profile, where you list the images of your product and list prices in tile formats. The marketplace is built on the social network. SuperRare is built on the Ethereum network and Ether is the official token of the platform.

### Final thoughts
While non-fungible tokens have gained rapid popularity, it is important to understand several factors and the purpose of your intent before choosing to indulge in the market.

At the same time, artists, musicians, sports personalities, and celebrities are coming forward to leverage the benefits of this virtual environment to earn ownership of digital collectibles. We can see more and more promising projects to enter into the NFT market and even big companies have started investing in this financial instrument. Furthermore, the long-term value of assets can no longer be ignored, a reason why many artists and musicians can earn royalties — a steady stream of income even when they have sold their original works on the platform.

A deep dive into how to create NFTs, which factors should be considered before buying or selling NFTs, and a look at the best NFT marketplaces.

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Buying your first NFT: here’s everything you need to know

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The innovation of non-fungible tokens has added value to real-world assets. Non-fungible tokens (NFTs) generate uniqueness for real-world assets by leveraging blockchain technology. This has resulted in creators building their content — from music to art and representing them as NFTs to add value.

In this article, we decode a step-by-step guide on how to create an NFT on a prominent marketplace, the required tools, and lastly how to sell them on a marketplace.

### How to Create an NFT?
From GIF to travel videos — creating an NFT is a process that remains the same across all the verticals. Contrary to what people believe, creating an NFT from scratch is a relatively straightforward and simple process. Moreover, you need not have the technical knowledge to create and sell an NFT. Before you start, you need to decide the blockchain network on which you want to develop your NFT.

While Ethereum is one of the most prominent blockchain networks used to develop NFTs, other leading networks include Binance Smart Chain (BSC), Tron, EOS, Polkadot, Tezos, Cosmos, Flow by Dapper Labs, and Wax. It is important to note that when you create an NFT on top of a blockchain network, you will only be able to sell on marketplaces that support these assets. For instance, if you develop an NFT on BSC network, you will not be able to sell them on Open Sea — an Ethereum-based NFT marketplace.

Please note that each blockchain network has its own token standard, compatible wallet, and marketplaces. For the sake of simplicity, we are taking Ethereum as the example to create an NFT.

### Create an NFT: A Step-by-Step Guide
Before creating an NFT, you have to acquire some ETH and keep it in a digital wallet such as MetaMask or my Etherwallet. Follow these straightforward steps to develop an NFT. For the sake of simplicity and to present a clear explanation, we have chosen the Rarible marketplace as an example in this article.

#### Register for an NFT account
You need to create an account on an NFTs website, which in this article we are using Rarible. Connect your Ethereum wallet to Rarible, and let’s get started.

#### Create a digital collectible
The Rarible homepage will open after you successfully link your wallet. Then click the create button on the homepage to initiate the process. Here you will be provided with two options to choose from: whether you want to make a single or multiple collectibles. This further means that you can decide if you will be minting one or several copies of the unique digital collectible. The word minting refers to **the process of converting your ‘digital art’ into an NFT on a blockchain network**. One key driver of NFTs’ value is scarcity, and you should be extremely careful when making this decision.

#### Add your collectible project
This is a crucial stage in the entire process. First, you need to decide whether you will start creating from scratch or have a ready project. Then you will upload your project onto the platform. Rarible supports the usual formats such as JPG, gif, PNG, MP4, and many others.

#### Fill in the details about the project
You will be required to fill in the details of your NFT project, such as royalty, name, and description. The description of an NFT explains what the particular asset signifies and why should potential buyers be interested. Moreover, it gives a story behind the product so as to present the urge for buyers to purchase.

The role of royalty points is important. Here, you will choose whether you will receive 100 percent after selling your item for the first time, or you can choose to receive a 10 percent royalty or more that every time your item is sold to another party.

#### Fix the price, and you have your first NFT!
The last step is setting a price, and you have your first digital collectible. It’s important to note that Rarible charges a commission of 2.5 percent. So, for example, when you sell your item at $60, the platform will receive 2.5 percent from the sale. Additionally, take note that the commission fees will be charged every time, including from royalty, that the digital collectible is sold. It is necessary to check the commission fee for different marketplace platforms.

Moreover, ensure your collectible price is on Ethereum. The gas fee is another fee charged for recording your transaction on the Blockchain.

Therefore, it’s not challenging to create an NFT because the essentials you need are Ethereum tokens and a unique item that will fetch a significant value in the NFTs marketplace.

### How to sell NFTs?
To sell your NFT, you have to think carefully about the price you would like to set. If it is too low, you may not be able to cover even the gas fees and will swallow your entire profit. You have to give a description of the NFT product, add properties, and images to attract the right buyers. You have to give the conditions for sale and fix the price for the auction. You can select the cryptocurrencies in which you want to receive your royalties. Some platforms may ask you to pay a transaction or a “gas” fee to complete the entire process.

### Are NFTs reliable investments?
Every investment comes with a question of risk. Various sets of risks encircle NFTs as well. In addition, there are no guarantees about the future of NFTs.

The lack of enough historical data makes it challenging to predict the future outcome of NFTs. NFT assets are relatively new in the market, and investors should invest an amount they can afford to lose.

To a large extent, NFTs value depends on what another person is willing to pay for it. With that in mind, high demand will likely propel the NFTs’ worth more than technical or fundamental indicators that considerably impact cryptocurrency or stock prices.

Ultimately, you can purchase an NFT asset and resell it at a lower price because the price will depend on the demand at that moment.

### Final thoughts
Non-fungible tokens (NFTs) come with many benefits for content creators. Initially, creators did not have the access to decentralized, permissionless, and peer-to-peer platforms that directly connects them to buyers across the globe. At the same time, creators were subjected to lower prices because global customers could not access the products.

The emergence of NFT providers with excellent features has enabled new content creators to join the action and showcase their work to the global population. In addition, unique and quality items can help investors buy and resell them at a higher profit target if there is high demand.

A step-by-step guide to create an NFT. Best tools, resources and marketplaces to start selling NFTs. Understanding what does NFT mean into the crypto currency world.

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How to create and sell an NFT? A step by step guide

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The overall blockchain and crypto industry has significantly matured in the last few years. Innovative blockchain products have been making headlines owing to the wide implications of their use-cases in several industries. One such innovation that has been gathering significant attention is the concept of Non-Fungible tokens or NFTs.

NFTs are the latest blockchain phenomenon to take the crypto-verse by storm. While the concept of NFTs has existed for a while now, it started driving buzz after the record-breaking $69 million digital NFT art [sale](https://www.nytimes.com/2021/03/11/arts/design/nft-auction-christies-beeple.html) at Christie’s auction. Since then, several NFTs in different forms have been sold and they continue attracting more attention. In this article, we decode what are NFTs, their unique properties, and more importantly ponder upon why is everyone talking about them?

### What are NFTs?
**NFTs refer to a collectible and identifiable digital asset representing a broad set of physical and nonphysical things**. In essence, NFTs prove the ownership of intellectual properties such as images, pictures, audio, GIF, video, or a tweet, in the same manner, cryptocurrencies like Bitcoin are owned.

Unlike standard digital currencies, NFTs are not mutually interchangeable. The reason being that NFTs are unique, and none is identical to the other, hence non-fungible. On the other hand, regular cryptocurrencies are similar, and they are all priced the same. As such, they are easily exchanged with each other; hence they are fungible.

**NFTs work on blockchain technology**. They are created and recorded on a blockchain. A blockchain is a peer-to-peer distributed ledger system or database where data or transactions are stored in blocks. All these transactions are immutable meaning nobody can undo or reverse the transactions.

NFTs were first built from ERC-721 tokens on the Ethereum blockchain network. When a transaction occurs, it is permanently recorded in the blockchain and gives ownership to the purchaser. Similar to the blockchain, the transaction on NFTs cannot be interchanged. NFTs use smart contracts for the settlement of agreements between the two parties and helps in the transfer of ownership. Hence, NFTs are neither identical nor can be interchanged due to their foundation set on blockchain networks.

Apart from Ethereum, other blockchain networks such as Neo, Tron, and EOS have launched their own token standards to motivate developers to create and sell NFTs on their networks.

### How do NFTs work?
At a time when everything is getting digitized, NFTs are produced from virtual materials that exemplify both physical and nonphysical items such as pictures, sports highlights, sportscard, music, artwork, GIFs, in-game avatars, digital sneakers, digital real estate.

Surprisingly, Twitter’s chief Jack Dorsey sold an NFT version of his first [tweet](https://v.cent.co/tweet/20) for almost 3 million on the Valuables platform, run by blockchain-based social network Cent. In simple terms, NFTs are equal to physical collector items, only in digital form.

NFT owners are granted exclusive custodianship rights since they can only have a single custodian at a time. Thus, their singular encrypted information acts as the provenance of ownership. In addition, NFT owners can easily store data in them. For instance, a cryptocurrency holder might decide to hide their private keys, the keys to access digital assets, inside NFTs or an artist can add their signature inside an NFT’s metadata, like a virtual autograph.

#### The significance of NFTs
There has been a sharp uptick in demand for digitization across various industries. NFTs have unlocked an opportunity for multiple sectors to harness the luxuries associated with the crypto-verse. Their particular properties make them desirable. A core aspect of NFTs is provenance, which is recorded on the blockchain and visible to everyone. You can easily confirm whether an NFT is genuine through the blockchain by simply checking whether the NFT’s contract addresses match the one with that of the creators.

In addition, NFTs don’t need the storage cost associated with the physical form of any creation like books, art, content, etc. NFTs are hosted on the blockchain, and you don’t need an art gallery or a book store to store your NFTs. The only storage cost associated with the storage of NFTs is a digital wallet, which can be acquired for free.

#### Ownership of NFTs
The new blockchain prodigy is especially appealing to individuals who enjoy collecting relics or unique items. The pleasure of owning a unique masterpiece overrides the joy of having everyone view your NFTs on the internet. Although the digital objects that NFTs represent are readily available for all to see through the internet, owning the original version makes it more valuable.

#### Indestructible
NFT data is recorded on the blockchain through smart contracts. Smart contracts are programs that are automatically executed when a pre-defined condition is met. Once the information has been recorded on the blockchain, it becomes immutable, meaning it cannot be changed or deleted. As such, their authenticity can be easily verified, and they cannot be stolen.

#### History and provenance
NFTs are still in their early stages but do they have any historical significance? Early NFTs might play a considerable role in the future once this blockchain phenomenon realizes its full potential. For instance, [Cryptopunk](https://opensea.io/assets/cryptopunks) is viewed to be among the pioneering NFT collectibles, which is why it is considered valuable. Additionally, given their immutability, you can quickly check out their history of ownership. Who were the prominent owners of an NFT? The provenance of past owners might raise the value of an NFT further, especially if a famous person used to own it before. Well, that is if the previous owners had made their addresses public.

#### Scarcity
NFTs are uniquely created through blockchain technology. They cannot be replicated, and it’s why they are called non-fungible tokens. Scarcity creates value, explaining the exorbitant prices we have heard in the burgeoning NTFs marketplaces.

### Applications of NFTs

#### Art
The sale of NFT artwork for $69.3 million by digital artist Beeple at Christie’s caused shockwaves across the cryptocurrency industry. NFTs soon became the talk of the town soon after the record-breaking auction. Digital artwork is the most common utility of NFTs, creating a perfect blend of creativity and technology. For a long time, digital artwork has been massively undervalued to a considerable degree because they are easily acquired over the internet. NFTs presents artists with an alternative revenue model by amplifying their value through the element of scarcity. Besides, NFTs have helped artists reach a broader audience worldwide.

#### Fashion
While most NFT marketplaces are focused on art, fashion-focused NFTs have begun emerging with significant capital to back up their offers. For instance, Mintable, a market for NFTs, partnered with A Bathing Ape and [raised](https://www.cryptonewsz.com/mark-cuban-backed-nft-marketplace-raises-13m-usd-in-series-a/) $13million in capital. As a result, scarcity and the ability of NFTs to create value have caught the eyes of the fashion and luxury industry. Until today, spending real funds on digital clothes has been a thing of the gaming world and not the real world. In the luxurious fashion world, NFTs have enabled fashion collectors to differentiate fake and genuine properties easily. Major fashion brands such as Gucci, LVMH, and Champion have either joined or expressed their intention to join the NFTs craze. To understand the wider implications and applications of NFTs in different sectors, refer to this [article](https://rarespot.io/learn/what-are-top-NFT-use-cases).

### Final Thoughts
The utilities of a non-fungible token have gained considerable popularity across a myriad of industries. The digital collectibles are steadily forming a base for the utility of digital assets in different sectors. The adoption of NFTs will be central in tackling problematic issues such as counterfeits, theft of intellectual properties, fraud, and copyright issues. Therefore, we are likely to see more applications of NFTs soon.

A complete overview of blockchain-enabled non-fungible tokens. What are NFTs, their meaning and applications in the crypto market?

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What are NFTs and how do they work? A simple guide to non-fungible tokens

We answer to your question about non fungible tokens, and we do it clearly.

Data is key for any investment decision, and this is particularly true for the NFT space. Our mission is to guide our community of investors with the highest quality of insights available in the market. We are committed to provide the proper tools to support NFT traders in understanding, analyzing, and comparing NFT market data.

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