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What is an NFT? – Forbes Advisor

Published

3 months ago

2 May, 2024

Editorial Note: We earn a commission from partner links on Forbes Advisor. Fees do not influence the opinions or ratings of our editors.

Non-fungible tokens (NFTs) seem to be everywhere these days. From art and music to tacos and toilet paper, these digital assets sell like they did in the 17th century Exotic Dutch tulips– some for millions of dollars.

But are NFTs worth the money or the hype? Some experts say they are a bubble ready to burst, like the dot-com craze or Beanie Babies. Others believe that NFTs are here to stay and will change investing forever.

What is an NFT?

An NFT is a digital asset that can come in the form of art, music, game items, videos, and more. They are bought and sold online, often with cryptocurrencyand are generally coded with the same underlying software as many cryptocurrencies.

Although they have been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. The NFT market was worth a staggering $41 billion in 2021 alone, a figure approaching the total value of the entire global fine art market.

NFTs are also generally one-of-a-kind, or at least very limited-run, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, president of the Washington Technology Industry Association’s Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.

This is in stark contrast to most digital creations, the supply of which is almost always infinite. Hypothetically, cutting supply should increase the value of a given asset, assuming it is in demand.

But many NFTs, at least in these early days, have been digital creations that already exist in some form elsewhere, like iconic video clips from NBA games or securitized versions of digital art already floating around Instagram.

Renowned digital artist Mike Winklemann, better known as “Beeple,” created a set of 5,000 daily drawings to create perhaps the most famous NFT of 2021, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record $69.3 million.

Anyone can view individual images or even the entire image collage online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value these “digital bragging rights” almost more than the object itself.

How is an NFT different from cryptocurrency?

NFT stands for non-fungible token. It is generally built using the same type of programming as cryptocurrency, for example Bitcoin OR Ethereumbut that’s where the similarities end.

Physical money and cryptocurrencies are “fungible,” meaning they can be exchanged or exchanged with each other. They also have the same value: a dollar is always worth another dollar; one Bitcoin is always the same as another Bitcoin. The fungibility of cryptocurrencies makes them a reliable means of conducting transactions on the blockchain.

NFTs are different. Each has a digital signature that makes NFTs impossible to exchange or match with each other (hence non-fungible). An NBA Top Shot clip, for example, is not the same as EVERYDAYS simply because they are both NFTs. (One NBA Top Shot clip isn’t even necessarily the same as another NBA Top Shot clip, for that matter.)

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How does an NFT work?

NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You are probably more familiar with blockchain as the underlying process that makes cryptocurrencies possible.

Specifically, NFTs are generally held on Ethereum blockchain, although other blockchains also support them.

An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:

Graphic art
GIF
Sports videos and highlights
Collectibles
Virtual avatars and skins for video games
Designer sneakers
Music

Tweets matter too. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT more than $2.9 million.

Essentially, NFTs are like physical collectibles, only digital. So instead of getting a real oil painting to hang on the wall, the buyer receives a digital file instead.

They also have exclusive ownership rights. NFTs can only have one owner at a time, and their use of blockchain technology makes it easy to verify ownership and transfer tokens between owners. The creator can also store specific information in an NFT’s metadata. For example, artists can sign their artwork by including their signature in the file.

What are NFTs for?

Blockchain technology and NFTs offer artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also allows him to keep more of the profits. Additionally, artists can schedule royalties to receive a percentage of sales each time their art is sold to a new owner. This is an interesting feature since artists generally do not receive future proceeds after their art is sold for the first time.

Art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT artwork to raise money for charity. Charmin dubbed its offering “NFTP” (non-fungible toilet paper), and Taco Bell’s NFT art sold out in minutes, with the highest bids coming in at 1.5 Wrapped Ether (WETH), equal to $3,723 .83 at the time of writing.

Nyan Cat, a 2011 GIF of a cat with a pop-tart body, sold for almost $600,000 in February. And NBA Top Shot has generated more than $500 million in sales starting at the end of March. A single LeBron James NFT brought in more than $200,000.

Celebrities like Snoop Dogg and Lindsay Lohan are also jumping on the NFT bandwagon, releasing mementos, artworks and one-of-a-kind moments as securitized NFTs.

How to buy NFTs

If you want to start your NFT collection, you’ll need to acquire a few key items:

First, you’ll need to get a digital wallet that allows you to store NFTs and cryptocurrencies. You will probably have to buy some cryptocurrency, such as Ether, depending on the currencies accepted by your NFT provider. You can buy cryptocurrencies using a credit card on platforms like Coinbase, Kraken, eToro and even PayPal and Robinhood now. You can then move it from the exchange to your favorite wallet.

You’ll want to keep rates in mind as you research your options. Most exchanges charge at least a percentage of the transaction when you purchase cryptocurrencies.

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Popular NFT Markets

Once you’ve set up and funded your wallet, there’s no shortage of NFT sites to shop on. Currently, the largest NFT markets are:

• OpenSea.io: This peer-to-peer platform bills itself as a provider of “rare and collectible digital items.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists.

• Rare: Similar to OpenSea, Rarible is a democratic and open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform allow holders to evaluate features such as fees and community rules.

• Foundation: Here, artists must receive “upvotes” or an invitation from other creators to post their art. The community’s exclusivity and cost of entry – artists also have to purchase “gas” to mint NFTs – means it can boast artwork of a higher caliber. For example, Nyan Cat creator Chris Torres sold the NFT on the Foundation platform. It could also mean higher prices – not necessarily a bad thing for artists and collectors looking to capitalize, assuming demand for NFTs remains at current levels, or even increases over time.

While these and other platforms are home to thousands of NFT creators and collectors, be sure to do your research carefully before purchasing. Some artists have fallen victim to imitators who have published and sold their works without their permission.

Additionally, the verification processes for NFT creators and listings are not consistent across all platforms – some are more rigorous than others. OpenSea and Rarible, for example, do not require owner verification for NFT listings. Buyer protections seem slim at best, so when purchasing NFTs, it may be best to keep the old adage “caveat emptor” (let the buyer beware) in mind.

Should You Buy NFTs?

Just because you can buy NFTs, does that mean you should? It depends, says Yu.

“NFTs are risky because their future is uncertain and we don’t yet have much history to judge their performance,” he notes. “Since NFTs are so new, it may be worth investing small sums to try them for now.”

In other words, investing in NFTs is a largely personal decision. If you have money to spend, it might be worth considering, especially if a piece has meaning to you.

But keep in mind that the value of an NFT is based entirely on what someone else is willing to pay for it. Therefore, demand will drive price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.

All of this means that an NFT can be resold for less than you paid for it. Or you may not be able to resell it at all if no one wants it.

NFTs are also subject to capital gains taxes– just like when you sell shares at a profit. Since they are considered collectibles, however, they may not receive the preferential long-term capital gains rates of stocks and may also be taxed at a higher collectible tax rate, although the IRS has not yet determined which NFTs are considered for tax purposes. Please note the cryptocurrencies used to purchase the NFT they may also be taxed if they have increased in value since you purchased them, which means you may want to check with a tax professional when considering adding NFTs to your portfolio.

That said, approach NFTs just as you would any investment: do your research, understand the risks, including that you could lose all of your invested dollars, and if you decide to take the plunge, proceed with a healthy dose of caution.

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Brett Token Price Soars 12%; Analyst Expects Further 30% Upside

Published

18 mins ago

27 July, 2024

TokenTalk Staff

Eight altcoins rally 10+% as volatility swings market

Brett, the largest meme coin in Blockchain Base, rose more than 12% on Friday, as sentiment in the cryptocurrency and stock sectors improved.

Brett (BRETT) the token rose to $0.133, up 31% from its low this month. Some traders believe the meme coin has more upside potential in the future.

Analyst is bullish on Brett

In an X-post, Michael van de Poppe, a trader with over 721,000 followers, said he is optimistic that the token will rise to $0.1712, up 30% from Friday’s trading level.

I’ve been a day trader for a long time and memes are a great way to gain that perspective.

Lots of volume.
And there’s a lot of volatility.

When it comes to $BRETTI would look for long positions in this area between $0.125-0.1325 and $0.170 as a clear identification of a potential bull run. photo.twitter.com/hWmSjCZGJa

— Michaël van de Poppe (@CryptoMichNL) July 26, 2024

If he is right, Brett’s market cap will surpass Floki’s (FLOKI), which has a market capitalization of $1.7 billion.

Brett’s bounce came at the start of the Bitcoin 2024 conference today. In a statement at the event, Robert Kennedy, an independent presidential candidate, noted that he is a big supporter of Bitcoin (BTC).

The main protagonist of the event will be Donald Trump, leading in most polls, included in Polymarket. Trump is expected to reiterate his support for cryptocurrencies. Analysts are divided on whether he will announce a Bitcoin reserve at this event.

Blockchain Base is doing well

Brett token also recovered as Base blockchain ecosystems continued to perform well. Launched in 2023 by Coinbase, Base has accumulated over $1.6 billion in DeFi assets, making it the sixth largest chain in the industry. It has surpassed popular networks like Cardano (ADA), Avalanche (AVAILABLE) and Polygon (MATIC).

At the same time, Brett and other altcoins jumped as the U.S. stock market rebounded, signaling that investors have embraced risk-on sentiment. The Dow Jones Industrial Average rose more than 600 points, while the S&P 500 and Nasdaq 100 jumped more than 80 basis points.

Brett Price

Brett Price Chart | Source: Trading View

Technically, Brett formed a morning star pattern, which is a popular reversal sign. In the past, the coin has risen by double digits when it has formed this pattern. For example, it formed on July 12 and then rose by 40%.

On the other hand, this bounce could be a dead cat bounce, where an asset briefly rises and then resumes its downtrend.

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Top 5 PolitiFi Tokens to Buy Now for MAX Profits

Published

1 hour ago

27 July, 2024

TokenTalk Staff

Coinpedia - Fintech & Cryptocurreny News Media

With the US presidential election fast approaching, the cryptocurrency world is buzzing with new trends. In addition to the well-known cartoon-themed meme coins, a new category is making waves: PolitiFi tokens. Did you see that coming?

These politically themed crypto tokens are gaining attention, especially those centered around former President Donald Trump. Today, we explore the 5 trending Trump-themed PolitiFi tokens.

Stock up to benefit later!

1. Trump (Magazine)

Launched about a year ago, the Trump-themed MAGA token has caused quite a stir in the cryptocurrency ecosystem. Inspired by Donald Trump’s slogan “Make America Great Again,” the MAGA token has produced an astonishing 35 million percent return since its inception. Currently trading at $5.65, it has fallen 8.80 percent in the past 24 hours.

Despite this, the token’s trading volume increased by 23.23%, bringing its market cap to $248 million and securing the 220th spot on CoinMarketCap.

Trump Themed Political Token -TRUMP - Price Chart Source: Dexscreener

2. MAGA (MAGA)

Another token with the same ticker, MAGA, is also trending in the PolitiFi category. With 390 billion tokens in circulation, this MAGA token has seen a 11.08% price drop over the past 24 hours, but an 81.39% increase in trading volume. Currently trading at $0.0001337, it is ranked 21st on Dexscreener’s trending list and 522nd on CoinMarketCap. Despite being only two months old, it has provided early adopters with a remarkable profit of 313,373.62% at its all-time high of $0.0007354.

Source: Dexscreener

3. Super Trump Coin (STRUMP)

Super Trump Coin, a meme token depicting Donald Trump as Superman, has a circulating supply of 1.8 billion tokens. Over the past 24 hours, its trading volume has increased by 39.88%. Currently trading at $0.01112, it has dropped by 6.07% over the past 24 hours, but holds a CoinMarketCap rating of 776. From its all-time high of $0.03085, it has dropped by 64.06%. Despite this, its impressive short-term returns have made it a favorite among Trump crypto enthusiasts.

Source: Dexscreener

4. MAGA Vice President (MVP)

Launched just four months ago, MAGA VP has yet to break into the top 1000 cryptocurrencies on CoinMarketCap, currently ranked 1231st. With a value of $0.128, its trading volume has increased by 21.79% over the past 24 hours, with a market cap of $5.3 million. While it is up 110% at its current price, it is down 83.24% from its all-time high of $0.7706.

Source: Dexscreener

5. Little Trump

One of the most unique Trump-themed tokens is Baby Trump, which depicts Donald Trump as a baby president. With a circulating supply of 406 million tokens, it has a market cap of $3.5 million at a trading price of $0.008616. Although its price has dropped 9.45% in the last 24 hours, its trading volume has increased by 4.29%. At its peak, Baby Trump’s market cap was $11 million.

Notably, Baby Trump is the only token among the five analyzed to be based on the BNB Smart Chain, while the others are based on the Ethereum network.

Trump Themed Political Token - BABY TRUMP - Price Chart Source: Dexscreener

It’s an exciting time for cryptocurrencies

The current political climate in the United States is spawning a new wave of meme tokens themed around various political figures. Among them, Trump-themed PolitiFi tokens are experiencing the most significant surge in popularity. Support for Donald Trump in the crypto community seems to be a driving force behind the success of these tokens.

Do you think Trump-themed PolitiFi tokens are here to stay or just a passing trend? Share your thoughts.

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Binance Completes Render (RNDR) Token Swap and Rebranding to Render (RENDER)

Published

4 hours ago

26 July, 2024

TokenTalk Staff

Binance to Delist OMG, WAVES, WNXM, XEM from 2024-06-17

Lorenzo JengarJul 26, 2024 10:26 AM

Binance has successfully completed the token swap and rebranding of Render (RNDR) to Render (RENDER), opening new trading pairs and enabling deposits and withdrawals.

Binance, a leading cryptocurrency exchange, has successfully completed the token swap and rebranding of Render (RNDR) to Render (RENDER), according to an official announcement from the company. The transition marks a significant milestone for the platform and its users, as deposits and withdrawals for the new RENDER tokens are now open.

New trading pairs and availability

Following the rebranding, Binance has opened spot trading for several new pairs involving RENDER. These pairs include RENDER/BTC, RENDER/USDT, RENDER/FDUSD, RENDER/USDC, RENDER/TRY, RENDER/EUR, and RENDER/BRL. Trading began on July 26, 2024, at 08:00 (UTC). Users engaging in Spot Copy Trading wallets can add these pairs by enabling them in the Personal Pair Preference section of the Spot Copy Trading settings.

Token Distribution and User Instructions

The token exchange was conducted at a ratio of 1 RNDR to 1 RENDER. Users can view the token distribution history via their Binance wallet history. Additionally, there are new RENDER token deposit addresses available for users to obtain.

It is important to note that deposits and withdrawals of the old RNDR tokens are no longer supported. Users are advised to update their wallet addresses and ensure that all transactions involve the new RENDER tokens to avoid any issues.

General information and disclaimers

Binance noted that there may be discrepancies in translated versions of this announcement and that users should refer to the original English version for more accurate information.

For more detailed information, users can refer to the official announcement on Binance website. Source.

As always, Binance reminds users to be cautious with their investment decisions. The platform is not responsible for any losses incurred due to market volatility. Users should consider their own financial situation and consult independent financial advisors if necessary.

Image source: Shutterstock

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Crypto AI RENDER token soars 15.6% after rebranding. Can it hit $10?

Published

6 hours ago

26 July, 2024

TokenTalk Staff

Crypto AI RENDER token soars 15.6% after rebranding. Can it hit $10?

Today, Render Network finalized the migration and upgrade of the cryptographic AI token RENDER. Following the highly anticipated rebranding, the AI token has seen positive price action, rising over 15% in the past day. Investors and market observers have expressed optimism about the rebranded token and believe it could hit $10 soon.

From RNDR to RENDER

Last year, the Render Network Foundation moved from Ethereum (ETH), where it was originally launched, to Solana (SOL). The move followed a community vote that approved two major upgrades to the network.

According to announcementThe move to Solana was “proposed for faster transactions, cheaper fees, and the project’s need to achieve more ambitious goals with more data and on-chain transactions.” The community also voted to rename the token from RNDR to RENDER, which will be finalized in 2024.

This month, the foundation informed users that many cryptocurrency exchanges, including Binance, Kraken, OKX, Crypto.com, and KuCoin, would automatically replace RNDR tokens with the rebranded token at a 1:1 ratio.

Monday, the RNDR The delisting from cryptocurrency exchanges began ahead of the scheduled migration on July 26. Exchanges halted most operations with the token, negatively impacting its performance over the course of the week.

Furthermore, whales apparently contributed impact on the token price. Online reports revealed that some notable holders sold their RNDR following the news, dragging the price from above the $7 support level to below the $6.5 price range.

The token continued to plummet in the following days, falling below the $6 mark, a 17% drop in four days. However, the long-awaited migration and listing of the new RENDER token seems to have kick-started a price recovery.

AI Token Skyrockets 17% After Listing on Binance

The newly renamed cryptocurrency AI Tokens has surged over 17% today after being listed by cryptocurrency exchange Binance. On Friday, the exchange announced that RENDER had been added to Binance Simple Earn, Buy Crypto, and Binance Convert.

Additionally, he revealed that Binance Margin and Futures options will be available today for the AI token. Meanwhile, the Auto-Invest option will be added on Monday, July 29. On that date, cryptocurrency exchange Kraken will also list RENDER and delist RNDR.

Investors and market observers have expressed optimism for the rebranding and listing on Binance. One user X said that as the project enters this new era, “RENDER token with this new chart of lows around $6.5 has the potential to reach unimaginable heights.”

Coinboss Cryptocurrency Analyst consider that the token could “pinball” if it makes a clean break above the $7 resistance level. A successful retest of the target could potentially lead the token to reclaim the $11 mark, further fueling a surge above RNDR’s all-time high (ATH) of $13.53.

Another cryptographic analyst pseudonym you think RENDER may soon hit $10, saying: “Thanks for the fud. See you above $10.” Some users also believe that investors will regret missing the “best buying opportunity.”

Over the past 24 hours, the AI crypto token has seen a remarkable 140% increase in market activity, with a daily trading volume of $83.1 million. At the time of writing, RENDER is trading at $6.89, up 15.6% from the previous day.

AI, RENDER, RENDERUSDT RENDER Performance on 3-day chart. Source: RENDERUSDT on Trading View