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NFT stands for Non-Fungible Token. These tokens are limited in number, and they are not interchangeable with another one. They can denote ownership of specific digital assets like Crypto Kitties, Crypto-Punks, etc. Non-fungible tokens don’t share this property with cryptocurrencies, since fungibility is needed in order to be able to trade them on the market.
Since NFTs are not interchangeable, they cannot be exchanged in the same way as cryptocurrencies on cryptocurrency exchanges. This is precisely why they cannot be traded on an open market, but only between parties that know each other or meet up privately so that they can carry out a transaction without interruption by outsiders.
Most popular NFT marketplaces:
Currently there are several NFT marketplaces and each marketplace sell different types of NFT. The most popular and largest ones include: OpenSea, Rabble, and Foundation NFT. Other interesting platforms have names like Crypto Slam, Atomic Assets, Super Rare, Nifty Gateway and NBA Top Shot. Most of these marketplaces are still hosted on Ethereum’s blockchain, thereby acting as Ethereum’s d Apps.
OpenSea is a marketplace for NFTs which operates on Ethereum, trading rare digital items and collectibles. It hosts a variety of digital collectibles, from video game items to digital artwork. Using OpenSea, users can interact with the network to browse NFT collections to exchange NFTs for cryptocurrency. One can also sort pieces by sales volume to discover new artists.
Rabble is a so-called ‘democratic’, open marketplace that allows artists and creators to issue and sell NFTs. Tokens issued on the platform enable holders to weigh in on features like fees and community rules.
On the Foundation NFT marketplace, artists must receive “up votes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry – artists must also purchase “gas” to mint NFTs – means it may boast higher-caliber artwork.
An interesting newcomer to the NFT market is Coinbase. The cryptocurrency exchange, aims to launch a marketplace that lets users mint, collect and trade NFTs. Users can sign up to a waitlist for early access to the feature. Its marketplace, to be named Coinbase NFT, would include ‘social features’ and tap into the so-called creator economy (a term used to describe the world of people who make money posting videos and other content online).
TOP 5 MOST EXPENSIVE NFTs :
- Crypto Punk#9998 – 532.4 million US dollars.
- Every days-The First 5000 Days – 69.3 million US dollars.
- Human one– 30 million US dollars.
- Crypto Punk#7804– 7.57 million US dollars.
- Crossroads– 6.60 million US dollars.
Advantages of NFTs :
NFTs can be used for a variety of use cases, from in-game items to digital art.
The benefits of using NFTs include:
- clear ownership
- easy to transfer ownership
- scarcity and uniqueness
- the ability to track the history of an item
Disadvantages of NFTs :
Non-Fungible Tokens are becoming more and more popular in the gaming industry. However, they come with their own set of disadvantages, which might not be obvious at first glance.
The most common disadvantage is that NFTs can’t be used on exchanges or for trading purposes. This means that if someone wants to buy a token, they need to go through the issuer of the token, and it might not be an easy process.
NFTs also have limited liquidity because there is no way to trade them externally of their specific use case.