NFTs are everywhere these days adn they seem like they have been taking over the world but event hough we are all caught up in the ups and downs and all the pixelated jpegs im going to go over the Top 10 types of NFTs. Many come up to me and figure that you have to learn some far off language to make sense of this but the easist way i find it makes sense is to find the utility for the use of the NFT.
So here are my top 10 Types of NFTs to look out for in the future. Remember they are: Immutable, Unique, Permanent, Provably Scarce, Counterfeit-Resistant, and Have Intrinsic, Block-chained backed value.
Fine ART is the main area initially affected with NFTs and it offers such a cool amount of things that the creator and the curator can do with the art. You are able to establish provenance which is super important when it comes to counterfiet and establishing its authenticity. You are able to fractionalize and own fine art pieces by groups of people and all have your own fraction, which has been something that has never been able to happen before. The Fine art space will be changed based on the fact you dont have to engage with the traditional channels which may not make sense now but when the transfer of weatlh begins and the heirs are the recipients of the asssets they are going to be looking for ways to gain liquidity and NFTs will be able to provide that, whether we are speaking of the royalties that you will be able to pass down from creator or the fractionaliztion for a defi platform, ART is FOREVER changed by NFTs.
Collectibles and the art of Collecting has gone from shops and stores in obscure towns to the digital space and NFTs are the natural friend for the collectibles market. The benefits that is has for the industry was on display very recently with Logan Paul being scammed for an original first edition Pokemon card only to be duped for some G.I. Joe cards to the tune of $3.5 million so this story shows you how the use of verification and authenticity for the collectors are important.
According to Market Decipher The global collectibles market is estimated at $400 billion and planning to grow at 7% CARG between 2021-2028 and $628 billion by 2031. So just like the Fine art market collectibles offer just as must perfect alignment to the collectibles because wheather its wine, a woodstock ticket or a REAL Pokemon card, NFTs allows for collectors to operate in a total different latitude that they couldn't use in the real world.
Sports Moments are some of the first industries to really embrace the space with Daper Labs and the NBA partnership to create Topshots marketplace, which makes the sports highlight clips individual NFTs. They are taking real life moments and selling them as collectible sports momemts that you could own and monetize as you see fit. Now each of the NFTs are owned by the purchaser but held on the Flow Blockchain which is Dapers proprietary Blockchain. I would like to tell all the Top Shot owners that in this new world, if you dont own the private keys then you dont own that crypto.
We now see other sporting leagues get into the game like La Liga, UFC and Even Cricket but this is just the tip of the iceberg as NFTs allow for an incredible amount of options for the leagues to monetize and live sports moments are just one of the low hanging fruit opportunities that jumped up right at the beginning of this revolution.
Music has the potential to disrupt the entire industry, now since the music industry has begun technical advancements are in the music space is plentiful and this new technology of block chain is no different. The difference is with the oversaturation of the market place artists are recieving less and less and leaving all the streaming services paying the bulk of the revenur to the top artists leaving the up and coming artist without much of the pie. However with NFTs this is all prime to change as it allow artists to deal directly with the fans and recieve revenue and royalties directly from their work and avoid bad record contracts.
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Gaming industry has so many uses for NFTs and so much so that the global gaming market and all its 2.7 billion active gamers and its $3 billion of revenue. The in game NFTs were some of the earliest NFTs in the market, when you think back to 2017 and think about those CRYPTOKITTIES the cute cuddly ingame collectibles that are stored as NFTs. Since then the advent of Gamfy and play-to-earn they have unleashed a truly revolutionary financial network that is changing the game for so many people across the world who are using the Play to Earn games to change their lives.
Domain Names create and intrinsic value showing that the owner actually owns a piece of the internet and able to store the domain directly to the blockchain and create other ways to monetize the domain as well as offer easy domain transferability of the asset and access to the NFT marketplaces. Many speculative investors are looking at domains the same way as VC's looked at the internet back in the early 2000's, as a potential gold mine.
Metaverse Land is another major point of excitement is to use NFT tech to synthesize a bridge from the real world to web 3 based metaverse world economies. Now its really broad subject but we are watching developers use their native tokens or nfts to design the metaverse ecosystems creating a new and innovative market for all investors. Already weve seen plots of land sell for millions and just like real estate its about location location location, and because the nfts are heald by these metaverse land holders, they then can impalement revenue generating programs like leases, rentals, hosting concerts and events or anything that you can think of.
Real Estate is something that can be ground breaking in the metaverse and as nfts, imagine a real estate market that you could access and trade in real time, similar to the stock market. What we are talking about is the web 3 aspect of the time and space continuum that is not relevant in the metaverse, you can treat real estate in the real world like stocks and buy and sell actual homes in seconds. Imagine Real Estate NFTs that eliminates an outdated wasteful model and transaction methods, NFTs will be able to streamline the industry and provide owners a verifiable proof of ownership. Imagine all those houses and land that were built by families that traveled to the Caribbean (for example) over the centuries of sea travel and that has been in families for years, do you think that the paperwork from 1823 is going to be kept nice and safe? I think NFTs and real estate are just a natural fit and will probably change the way that real estate is dealt with in the very near future.
With Fashion brands embracing NFTs like Gucci, Louis Vuitton, Nike, Prada & Adidas already, seems to me like the writing is on the wall as to the Fashion houses jumping into the NFT space and raking up millions in doing so. Louis Vuitton is even creating its own game called Louie. This is a a perfect mearging of fashion becasue its an ever changin industry with countless innovations and seasonal items drops and collections of which NFTs could immortalize in the digital space. As Fashion is such a huge space with Trillions spent in the space, but what NFTs can do alot for brands and cultural awareness both in and outside the fashion industry, symbolizes the achieviment for mainstream to jump into the NFT mass adoption, you ultimately have to come to the people where they are and when it comes to high fashion and couture this has always been a space for moving the needle and the culture so NFTs fit right in. I feel sorry for all the knockoffs that are going to be spotted :)
Financial NFTs aka NFTFi is what is really exciting to me. Because NFTs are versatile digital certificates of authenticity that means that it can be applied to any sector tht can benefit from ownership transfer-ability to be easily accessible verifiable and interoperable. So NFT + DeFi = NFTFi and this sees DeFi assets like Yield bearing token, Lending and Borrowing Collateral, Liquidity Tokens wrapped into NFTs to make the transferability and interoperability made easier as well as network efficiency. Uniswap V3 as a protocol is the leader in the space with $3 billion in Total Value Locked (TVL) while allowing liquidity providers and market makers to use their unique positions as liquidity provision tokens NFTs and like i said the $3+ billion shows that its working.
NFTFi is still a little new for some and has gotten many very nervous due to the scare tactics of the SEC calling them securities so the opportunities like Fractionalization, Collaterilization, staking, borrowing and some innovative yield farming solutions, like Lux.Finance who uses a money transmitter license in a tax-advantaged jurisdiction to offer liquidity to NFT holders with a tax-advantaged self repaying loan, so in essence you never have to cash in your crypto or your NFTs, HODL for ever and use the value in your portfolio as you wish with the Lux Credit card.
As you can see this is much more than Profile pics and jpegs, this is a whole new asset class that is going to revolutionize the way finance and value is creted and maintained. Just imagine what you could do with the worlds treasures as they are mostly sitting around like paperweights, we now have an opportunity to give the world more value and create value out of illiquid assets that have much cultural relevance and maybe able to show value in places that historically have been look at like wastelands. Can you image a world where value is pulled from the ether based off of culturally relavant artifacts heirlooms events recipes and innovations. This new world is upon us and is being embraced by the big boys one by one, this isnt only for the big boys this is for you and me too, just allow yourself to dream and make yourself a space in this new future because all non-fungible items are necessary and relevant, besides the most Non Fungible thing involved in this whole process is YOU.