What is an NFT coin?
What is NFT Coin?
NFT, short for ‘Non-Fungible Token’ in English, essentially means a non-exchangeable token. It operates on the principle of storing digital assets in a digital ledger called the blockchain. Here, many items are represented. Photos, sound, video, and other digital files are the elements represented in these storages.
NFT Coin is used to tokenize elements such as digital art, video game, and music files. However, not only token holders but also other blockchain users can access these files. The first NFT Coins were introduced in 2015 based on Ethereum and quickly gained significant usage rates in the crypto market. It has become a trend, especially in the art world. Source
The sales volume of NFT Coins highlights its high popularity. In the first six months of 2020, NFTs had a sales graph of $13.7 million. However, this figure reached $2.6 billion in 2021. The first tweet by Twitter founder Jack Dorsey was sold for $3 million. These figures are increasing exponentially every day.
How NFT Coins are made is also a great curiosity. The presentation of a digital content on platforms like Rarible and KnownOrigin through auction reflects the basic logic of the NFT creation process. These uploaded contents on the blockchain can be purchased with a certain amount of cryptocurrency and can also be copied to be resold as NFTs.
NFT is a unique digital asset. Consequently, it sets it apart from other cryptocurrencies. Currently, cryptocurrencies can be divided into pieces for sale or exchanged. However, this is different in the case of NFT Coins. Being a unique asset, they cannot be traded with other tokens. Also, the value of the asset is determined by the creator.
There are platforms where NFTs are showcased today. By becoming a member of these platforms, digital assets with their values determined by the creator can be purchased. There are two different purchasing methods: direct purchase and auction. After the purchase, NFTs are transferred to the user’s wallet. Additionally, users can choose to resell their owned NFTs.
Finally, it is worth mentioning that NFTs are a form of investment. The value of the investment can be interpreted based on the artistic value of the acquired NFT. Users can sell the products they purchased at much higher prices in the long run.