What kinds of NFTs are out there?

If you’ve ever visited an NFT marketplace, you’ll have most likely come across digital collectibles of all descriptions - from artworks and in-game characters to music and tweets. But what else is on offer in the world of NFTs?

If you’re still not quite sure what an NFT is, you can find out more about them in this blog post.

The different types of NFTs

The popularity of NFTs has grown significantly in recent times, with 2021 being the year in which sales skyrocketed. Let’s have a look at some of the most popular NFTs on offer.

  • Digital art – this is the most popular type of NFT, giving many artists the opportunity to sell their work online as though it was physical. The most popular example of this is “Everydays: the First 5000 Days” by Beeple, which sold for $69 million.

  • Gaming – this typically involves digital assets that can be obtained in-game. A popular example of this is Axie Infinity, a blockchain-based game in which players can breed, battle and collect creatures called “Axies”. You can find out more about blockchain gaming here.

  • The Metaverse – users can be granted full ownership of virtual land and spaces in the Metaverse. The blockchain technology behind it also allows them to prove ownership of the asset and develop their virtual real estate. Decentraland is a good example of this, as it allows players to buy plots of virtual land through its native MANA token.

  • Sport – Sport NFTs typically include things like digital trading cards, sports kits, video clips and memorabilia (e.g. autographs, trophies, awards, etc.).

  • Utility – these provide the owner with some functional or monetary rights, such as governance, insurance, licensing and more. Domain names are actually one of the most popular types of utility NFT.

  • Memes – this describes NFT assets of popular or famous internet memes, such as Bad Luck Brian, The Disaster Girl, Doge and Charlie Bit My Finger.

The benefits of NFTs

NFTs have many advantages for both creators and token holders. These include:

  • Decentralised marketplace – this allows creators to make money directly from their work, as well as to interact and transact directly with their customers.

  • Ownership – NFTs guarantee full ownership of digital assets. They are also non-distributable and cannot be shared among numerous owners.

  • Authenticity – an NFT’s unique identity and ownership are verified through the blockchain ledger. The immutability of the blockchain ensures an NFT’s legitimacy.

  • Transferability – let’s take blockchain gaming as an example. While the concept of in-game purchases has been around for a long time, these objects are limited to the game’s setting and players cannot use them elsewhere. On the other hand, creating NFTs for in-game objects allows players to hold them in their digital wallet, use them outside the game or sell them to make a profit.

What are some famous examples of NFTs?

One of the most popular NFTs out there is CryptoPunks. Launched in 2017 and developed by Larva Labs, CryptoPunks is a series of 10,000 images tokenised as NFTs on the Ethereum blockchain. Each CryptoPunk is different from the other, with each asset designed with different themes, such as zombies, aliens and apes.

When the project first took off, CryptoPunks were released as an experiment and were given out for free. Fast forward to today, and a single CryptoPunk is now worth between $350-500k. This wave of popularity also kicked off the trend of profile picture NFT sets, such as the Bored Ape Yacht Club and Doodles.

The Bored Ape Yacht Club is similar to CryptoPunks, but instead taking the form of disinterested-looking apes (hence the name). There are 10,000 of them, each with their own randomly generated set of attributes. However, anyone who owns a Bored Ape NFT is also eligible for drops of additional NFTs, such as the Bored Ape Kennel Club (a series of dog NFTs) and the Mutant Ape Club.

The project has garnered a lot of celebrity endorsement over time, including rappers Eminem and Snoop Dogg, as well as professional basketball player Stephen Curry. The creator of Bored Ape Yacht Club, Yuga Labs, has even secured Hollywood representation and hopes to expand the project into film and TV in the future.

Overall, there’s a lot to discover in the world of NFTs and there are many possibilities out there for both creators and buyers. Which one will you take home?

DISCLAIMER – this article is for educational purposes only and should not be taken as financial advice.