{"id":215759,"date":"2021-03-31T19:48:08","date_gmt":"2021-03-31T16:48:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/"},"modified":"2021-03-31T19:48:08","modified_gmt":"2021-03-31T16:48:08","slug":"this-is-how-to-make-and-lose-a-fortune-with-nfts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/","title":{"rendered":"#This is how to make \u2014 and lose \u2014 a fortune with NFTs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34be3966d0f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34be3966d0f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#How_do_you_spot_value_in_an_NFT\" >How do you spot value in an NFT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#Value_drivers\" >Value drivers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#What_should_investors_avoid\" >What should investors avoid?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#Is_a_potential_financial_return_the_best_way_to_approach_NFTs\" >Is a potential financial return the best way to approach NFTs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#Are_some_NFTs_undervaluedovervalued_right_now\" >Are some NFTs undervalued\/overvalued right now?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#The_best_of_blockchain_every_Sunday\" >The best of blockchain, every Sunday<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#How_important_is_it_to_understand_the_secondary_sales_market\" >How important is it to understand the secondary sales market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#How_can_you_maximize_the_chances_of_winning_an_auction\" >How can you maximize the chances of winning an auction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#What_sort_of_budget_do_you_need\" >What sort of budget do you need?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#How_do_I_research_the_market\" >How do I research the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/buradabiliyorum.com\/en\/this-is-how-to-make-and-lose-a-fortune-with-nfts\/#Final_words_of_advice\" >Final words of advice<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#This is how to make \u2014 and lose \u2014 a fortune with NFTs<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/03\/magazine_NFT.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                &lt;p&gt;&lt;b&gt;The rise of nonfungible tokens, or NFTs, has been nothing short of astounding this year. Google searches for NFT are up over 600% since mid-February, hitting initial coin offering mania levels, and the top NFT platforms are &lt;\/b&gt;&lt;a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/d<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>radar.com\/nft\"&gt;&lt;b&gt;turning over&lt;\/b&gt;&lt;\/a&gt;&lt;b&gt; millions of dollars each day.&lt;\/b&gt;&lt;\/p&gt;&lt;p style=\"text-align: left\"&gt;&lt;span style=\"font-weight: 400\"&gt;In a single 24-hour period earlier in March, sport collectibles platform NBA Top Shot saw sales of more than $7.89 million, art house OpenSea took in $4.88 million, and digital antique NFT project CryptoPunks netted $3.28 million.&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;The mainstream <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> is showing more interest in NFTs than it has in crypto for years, with publications from the BBC to The New York Times running explainers and the odd hit piece. Prices certainly look frothy, with Beeples Everydays selling at Christies for almost $70 million, Jack Dorsey auctioning the first-ever tweet for $2.9 million, and an Alien Crypto Punk &lt;\/span&gt;&lt;a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.larvalabs.com\/cryptopunks\/details\/7804\"&gt;&lt;span style=\"font-weight: 400\"&gt;changing hands&lt;\/span&gt;&lt;\/a&gt;&lt;span style=\"font-weight: 400\"&gt; for $7.57 million. Established artists including Banksy and Damien Hirst have jumped onto the trend, along with musical acts Kings of Leon, 3Lau and Aphex Twin.&lt;\/span&gt;&lt;\/p&gt;&lt;p style=\"text-align: right\"&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;img loading=\"lazy\" class=\"aligncenter size-large wp-image-7163\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/03\/pasted-image-0-1024x526.png\" alt=\"\" width=\"1024\" height=\"526\" \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;(Alien Crypto Punk, Larva Labs)&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;\/p&gt;&lt;p style=\"text-align: left\"&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;At various points, the crypto community thought that either fast, cheap payments; decentralized finance, or DeFi; or the attraction of hard money might bring in the masses  it turns out the great unwashed are more interested in owning a JPG.&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;&lt;br \/&gt;&lt;\/span&gt;&lt;span style=\"font-weight: 400\"&gt;Colin Goltra, who co-founded the NFT-based Narra Art Gallery in Decentraland, says this is a very good thing, as NFTs are bringing new demographics into crypto, outside of the usual finance and tech types.&lt;\/span&gt;\n<\/code><\/pre>\n<p><span style=\"font-weight: 400\">Suddenly weve got this fresh blood of people exploring the space with new eyes, says Goltra, who also heads up Binance Philippines, adding: Its refreshing to interact with new community members  youre really inspired by the art, you have a lot of fun, and its kind of like a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> to collect.<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">Make sure youre getting some combination of that stuff out of it too because if youre just treating this as financial speculation, honestly, theres probably other games in town for that.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">So, how do you get involved? Magazine spoke to some of the leading experts in the field to find out.<\/span><\/p>\n<p>\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">A unique opportunity to acquire by way of nifty NFT, this jpeg of me blowing a kiss. 40 million seems reasonable, but I&#039;ll take 30 million to expedite a quick sale. The jpeg is infinitely reproducible, but the proof of purchase, being non-fungible, will be yours &amp; yours alone! <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/oM2LJSWa3X\">pic.twitter.com\/oM2LJSWa3X<\/a><\/p>\n<p>\u2014 Stephen Fry (@stephenfry) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stephenfry\/status\/1370306564905697280?ref_src=twsrc%5Etfw\">March 12, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u00a0<\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_do_you_spot_value_in_an_NFT\"><\/span>How do you spot value in an NFT?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Unlike DeFi protocols, where you can value a project by comparing its revenue and growth potential to the price of its token and its total value locked, the value of most NFTs is highly subjective, and sentiment can turn in an instant. Earlier this month, CryptoKitties were <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nonfungible.com\/market\/history\/cryptokitties?filter=saleType%3D&amp;length=10&amp;sort=blockTimestamp%3Ddesc&amp;start=0\"><span style=\"font-weight: 400\">changing hands<\/span><\/a><span style=\"font-weight: 400\"> for an average price of $1,263. By later in March, that had fallen to $115.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Its also important to understand what youre actually paying for. With digital art, for example, an NFT gives you ownership of a unique token linked to the art, similar to a certificate of authenticity. But you dont own the copyright of the art, nor do you get a physical copy of it, and it doesnt stop anyone else from copying or viewing it.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Australian dance music producer Flume <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.afr.com\/technology\/kind-of-ridiculous-flume-nft-sells-for-66-000-20210317-p57bob\"><span style=\"font-weight: 400\">sold<\/span><\/a><span style=\"font-weight: 400\"> a music and animation NFT, Saccade, for $66,000, despite retaining the copyright to the music and leaving it freely available for anyone to watch on YouTube. Castle Island Ventures founder Nic Carter <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/@nic__carter\/why-nfts-are-hard-to-explain-48f0ab0a35bf\"><span style=\"font-weight: 400\">likens<\/span><\/a><span style=\"font-weight: 400\"> buying an NFT to getting an autographed print:<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">What Im buying is effectively a digitized version of a signed setlist after a gig, or a signed, limited edition album cover. As I jokingly put it, the NFT should be understood as the autograph, not the art.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">The blockchain on which the NFT is minted also affects the price, with users paying a premium for Ethereum-based NFTs, given that the network is secure, decentralized and expected to be around for a while. But the choice of blockchain is less of an issue with in-game assets (which may need a faster blockchain) or with something like NBA Top Shot (which uses Flow), as its the only place you can buy licensed NBA memorabilia.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Value_drivers\"><\/span>Value drivers<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Different categories of NFTs  including art, music, in-game items, virtual land and collectibles  have different value drivers, explains Andrew Steinwold, managing partner of NFT investment fund Sfermion.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">He says that in-game assets derive value from their utility  a sword with 10 times the power of the average sword should fetch a higher price, for example  while virtual land is priced according to location content and parameters. Crypto arts value is based mainly on an artists reputation, while collectibles derive their value from the narrative that surrounds the asset.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Across all categories, scarcity and uniqueness help drive value  provided there is demand, of course. Collectibles often come in various editions which vary by size and have rarity tiers. First editions in a projects <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> typically command a premium, explains Delphi Digital research analyst Alex Gedevani. Even better if theres historical significance and\/or strong narrative behind it like CryptoPunks, the first NFTs.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Alien and Ape Punks are the most prized CryptoPunks. For the blockchain-based game Axie Infinity, where users raise and battle fantasy creatures called Axies, The scarcest, most valuable Axies are Mystic Axies, says Jiho Zirlin, co-founder of Axie creator Sky Mavis. They have rare limited skins and these skins will have a deeper evolutionary tract than other Axie body parts.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">On NBA Top Shot, sport Moments with low serial numbers fetch higher prices, as do those where the serial number matches the players jersey number. A collector recently <\/span><span style=\"font-weight: 400\">turned down a $1 million offer<\/span><span style=\"font-weight: 400\"> for a moment with a #1 serial number, which matched player Zion Williamsons jersey number, #1.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">NEWS<\/a><\/p>\n<p>We have news of the first $1 Million offer for an @nba_topshot moment!<\/p>\n<p>It was for the #1 and Jersey Match S1 Holo Zion Williamson.<\/p>\n<p>And <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JerLevine?ref_src=twsrc%5Etfw\">@JerLevine<\/a> turned it down. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/j0Ct0EH7wI\">pic.twitter.com\/j0Ct0EH7wI<\/a><\/p>\n<p>\u2014 OwnTheMoment (@OwnTheMomentNFT) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/OwnTheMomentNFT\/status\/1370041834672562187?ref_src=twsrc%5Etfw\">March 11, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400\">The NFT art scene is perhaps the easiest for newcomers to understand. Just as in the real world, well-known artists with bigger social followings command higher prices than newcomers. Make sure to look at an artists overall volume of work: Someone pumping out 10 NFTs per day may soon saturate the market. Counterintuitively, however, big-name artists can actually launch a lot more work than others.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">NFTs can be released in editions of 10, 50 or even hundreds of copies  similar to a real-world artist running off 500 prints and hand-signing them  or they can be released as unique, standalone one-of-one editions.<\/span><\/p>\n<p><span style=\"font-weight: 400\">As you might expect, the one-of-one editions are the most highly prized, and thats why Goltra focuses almost exclusively on them. I do like the idea that I can be the unique owner of beautiful imagery, or a beautiful piece of art, he says. <\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"What_should_investors_avoid\"><\/span>What should investors avoid?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">A big red flag comes up for projects that are only in it for the money, and Gedevani cautions against carbon copy clones of successful projects like CryptoPunks and Hashmarks along with celebrity NFTs <\/span><span style=\"font-weight: 400\">that appear to be quick money grabs off their audiences<\/span><span style=\"font-weight: 400\">. He doesnt mention Lindsay Lohan or Paris Hilton by name, but he probably doesnt have to.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Another <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theverge.com\/2021\/3\/20\/22334527\/nft-scams-artists-opensea-rarible-marble-cards-fraud-art\"><span style=\"font-weight: 400\">trap<\/span><\/a><span style=\"font-weight: 400\"> is buying stolen art. Russian artist WeirdUndead was outraged to find her stolen work up for sale on OpenSea after someone automatically tokenized it using Tokenized Tweets. She tweeted:<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I tried to ignore whole <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/NFT?src=hash&amp;ref_src=twsrc%5Etfw\">#NFT<\/a> hysteria but WHAT THE FUCK<br \/>I don&#039;t give any permission (ESPECIALLY to random jerks) to make tokens from my content and I feel so angry <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/E9UKF1AXug\">pic.twitter.com\/E9UKF1AXug<\/a><\/p>\n<p>\u2014 don&#039;t give up, skeleton (@WeirdUndead) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WeirdUndead\/status\/1369210982518693888?ref_src=twsrc%5Etfw\">March 9, 2021<\/a><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Its an ongoing problem, given how simple it is to mint NFTs now. Visual artist Rosa Menkman likewise <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.abc.net.au\/news\/science\/2021-03-16\/nfts-artists-report-their-work-is-being-stolen-and-sold\/13249408\"><span style=\"font-weight: 400\">discovered<\/span><\/a><span style=\"font-weight: 400\"> that four of her artworks had been tokenized using another website called MarbleCards and auctioned on OpenSea. Apart from the ethical issues, its hard to see stolen NFT art maintaining value if its creator disavows it.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Even when the art is authentic, Steinwold says its important to assess the background and motivation of the person issuing an NFT:<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">Are they some famous athlete that learned about NFTs last month? Or are they someone that has been in the NFT ecosystem for years and has thoughtfully crafted assets with a compelling narrative?<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">Steinwold may be thinking of NFL star Rob Gronkowski, who <\/span><span style=\"font-weight: 400\">sold $1.8 million worth of NFT memorabilia<\/span><span style=\"font-weight: 400\"> on OpenSea.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In the blockchain gaming world, Zirlin recommends steering clear of hyped-up but substance-free new projects, or as he puts it: Chasing the new hot thing, trying to be early to a bad project rather than joining a more established project with potential.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In the art scene, Goltra avoids NFT platforms that arent highly selective about the art they carry, such as OpenSea and Rarible. While he says large open platforms such as these are great for new artists and investors, they present logistical problems.<\/span><\/p>\n<p>\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">NON-FUNGIBLE ELONS <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/KZDpYGVWvz\">pic.twitter.com\/KZDpYGVWvz<\/a><\/p>\n<p>\u2014 beeple (@beeple) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/beeple\/status\/1371670432408084484?ref_src=twsrc%5Etfw\">March 16, 2021<\/a><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Theres just so much work that you have to sift through to find anything of quality, he says. He prefers platforms with filters, including SuperRare  which only offers one-of-one single editions  Nifty Gateway and Foundation.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Miko Matsumura, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> partner at Gumi Cryptos Capital, recommends avoiding pretty much everything. Almost everything in NFT will be worthless in the future, he says, with limited exceptions for those that can be authenticated as having historical significance, such as CryptoKittes or NBA Top Shot collectibles. Dont buy stuff that has no historical value from sources that have no authority, he warns.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Is_a_potential_financial_return_the_best_way_to_approach_NFTs\"><\/span>Is a potential financial return the best way to approach NFTs?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">In a word, no. Those with whom Magazine spoke agreed that collectors with a genuine interest in a category are the most likely to turn out to be successful in this nascent industry. If someone is heading into a collectibles market with the intention of flipping for profit but doesnt understand the nuances of the project, chances are it may not end well, says Gedevani, adding:<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">We are still largely in the experimental phase with collectibles across many categories like sports, avatars, game items and more. Its better to focus on niches that genuinely interest you and where you can find an edge.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">Gabby Dizon, co-founder of Yield Guild Games and Narra Gallery, says were still so early in the NFT game that its very difficult to gauge potential financial returns. A better strategy is to first buy something you would not mind owning for the next five years, with one eye on factors that might see the value increase, like scarcity, desirability, aesthetics and utility.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">That way, even if the market tanks, you still own an NFT you like. For Goltra, The financial stuff is secondary, adding: There are pieces I could purchase as speculative plays but I dont because its not the purpose for me. I just try to buy art that I like or that speaks to me in some way.<\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<p>\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I will be burning over $4million of art tonight. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/B0gks8c4ni\">pic.twitter.com\/B0gks8c4ni<\/a><\/p>\n<p>\u2014 Mad Dog Jones (@Mad_Dog_Jones) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Mad_Dog_Jones\/status\/1371872470228209671?ref_src=twsrc%5Etfw\">March 16, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u00a0<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Are_some_NFTs_undervaluedovervalued_right_now\"><\/span>Are some NFTs undervalued\/overvalued right now?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Mike Winkelmann, the artist known as Beeple, certainly thinks prices are too high at present, <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-21\/prices-in-a-bubble-beeple-says-after-his-69-million-nft-sale\"><span style=\"font-weight: 400\">telling<\/span><\/a><span style=\"font-weight: 400\"> Fox News: I absolutely think its a bubble, to be quite honest. I go back to the analogy of the beginning of the internet. There was a bubble. And the bubble burst.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Matsumura believes that All types of NFTs are overvalued right now and likens the space to a lottery, where the winners win really big and get all the publicity while the vast, vast majority of people will be losers, economically speaking.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Goltra is also keenly aware the NFT mania could fizzle out, taking those high price tags with it. I know were not immune to market cycles, the way that the rest of the crypto space is, he says. And so, I know that theres a version of this where any media that were doing right now, you know, whenever this next cycle is over, we all look stupid.<\/span><\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400\">(function() {window.mc4wp = window.mc4wp || {listeners: [],forms: {on: function(evt, cb) {window.mc4wp.listeners.push({event   : evt,callback: cb});}}}})();<!-- Mailchimp for WordPress v4.8.3 - https:\/\/wordpress.org\/plugins\/mailchimp-for-wp\/ --><\/p>\n<div class=\"mc4wp-form-fields\">\n<div class=\"jeg_mc4wp_heading\">\n<h3><span class=\"ez-toc-section\" id=\"The_best_of_blockchain_every_Sunday\"><\/span>The best of blockchain, every Sunday<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Subscribe for thoughtful explorations and leisurely reads from Magazine.<\/p>\n<\/div>\n<p>By subscribing you agree to our Terms of Service and Privacy Policy<\/div>\n<p><label>Leave this field empty if you&#8217;re human: <\/label><\/p>\n<div class=\"mc4wp-response\"><\/div>\n<p><!-- \/ Mailchimp for WordPress Plugin --><\/span><\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400\">But Yat Siu, CEO of Animoca Brands, believes at least one NFT sector is currently not getting enough love, and thats gaming. Our opinion is that game assets are undervalued because NFTs derive value not just from provenance, scarcity, and general demand, but also from their utility, he says.<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">If you do wish to acquire NFTs primarily as an investment, then aim for assets that have underlying utility in a scarcity-based game or platform that is likely to grow significantly in terms of users  your NFTs will have a better chance to increase in value simply due to demand and supply patterns.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">As an example of a wise investment, he notes that crates of NFTs for the Formula One-licenced game F1 Delta Time were released for $500 in 2019, some of which contained sought-after Ferraris that have increased in value to as much as $60,000.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_important_is_it_to_understand_the_secondary_sales_market\"><\/span>How important is it to understand the secondary sales market?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Steinwold calls secondary sales perhaps the most important indicator of an NFTs longevity, and Dizon cites them as the true test of whether an NFT was worth the initial purchase price.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">To better understand secondary markets, Gedevani recommends making use of third-party or community-created analytic tools such as MomentRanks, Intangible.market and Evaluate.market, which help investors gauge the value of NBA Top Shot collections.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Overlooking secondary sales is an easy way to make a mistake of buying an overvalued asset that has already run up substantially in a short time period, he says.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_can_you_maximize_the_chances_of_winning_an_auction\"><\/span>How can you maximize the chances of winning an auction?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">While you could learn how to code and use bots, as Steinwold suggests  or take a short course in auction game theory  the best way to win is to not play the game, says Goltra. <\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Sometimes you can preempt the auction altogether, he says, suggesting you slide into an artists DMs on Twitter or Instagram and negotiate directly.<\/span><\/p>\n<blockquote class=\"pullquote align-center\"><p><span style=\"font-weight: 400\">I think artists want to know that the collector of the art is appreciating it, and they like knowing who their collector is. To be able to actually strike up a conversation and kind of make friends with the artist is actually a best practice in terms of wanting to win something super rare.<\/span><\/p>\n<\/blockquote>\n<h4><span class=\"ez-toc-section\" id=\"What_sort_of_budget_do_you_need\"><\/span>What sort of budget do you need?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">A couple hundred dollars is a reasonable budget to begin with in most categories, though given the interest in NFT art at present, a couple thousand might be required to snare a one-of-one edition from anyone with a reputation.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">To snag an art bargain on a low budget, you might have to work a little harder. I specialize in buying NFTs of up-and-coming artists who are yet undiscovered and whose NFT artworks are selling for much lower prices than more established artists, explains Dizon. Such gems are more likely to be found on open platforms like OpenSea and Rarible  though youll need to spend a bit of time combing through the haystack.<\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<p>\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The best NFT purchases are from undiscovered talent with little sales history.<\/p>\n<p>Many of the top artists today started selling pieces for less than 1 ETH.<\/p>\n<p>Curation creates new market opportunities \u2013 Dig deeper.<\/p>\n<p>\u2014 Coopahtroopa  (@Cooopahtroopa) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Cooopahtroopa\/status\/1374101538734448641?ref_src=twsrc%5Etfw\">March 22, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400\">OpenSea co-founder Alex Atallah says you can turn up hidden gems by looking for artists with few buyers to date but who have strong, unique social media accounts. These are often the ones that will get discovered soon by the NFT community, he says.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Goltra adds that keeping an eye on the upcoming artists with whom better-known artists interact on social media is also instructive. You can kind of tell when theres a new artist thats very prominent, because all the other artists get excited, he says.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Games and collectibles platforms often have very affordable entry points: NBAs Top Shot platform sells common packs for as low as $9, and collector Pranksy claims to have <\/span><span style=\"font-weight: 400\">turned $600 into nearly $7 million<\/span><span style=\"font-weight: 400\"> worth of memorabilia in a few months on the platform.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">Siu explains that newer projects sometimes reward early adopters in the community with airdrops and gifts: Getting deeply involved in an NFT project early on is usually a sound strategy because there will often be early adopter drops or gifts for engaged community members, he says, adding: We have given out such rewards in games like F1 Delta Time encouraging players to play more frequently, and some of those rewards ended up becoming quite valuable.<\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">And for those who have no budget at all, you can actually play to earn by raising Axies  a pastime that helped numerous <\/span><span style=\"font-weight: 400\">Filipino players make it through the pandemic<\/span><span style=\"font-weight: 400\">, with some even becoming relatively wealthy in local terms.<\/span><\/p>\n<p><span style=\"font-weight: 400\">There are people making a living playing Axie, says Zirlin. From collectors to play-to-earn grinders in the developing world.<\/span><span style=\"font-weight: 400\"><br \/><\/span><\/p>\n<p>\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">the most impressive <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nbatopshot?ref_src=twsrc%5Etfw\">@nbatopshot<\/a> metrics don&#039;t have dollar signs: <br \/>84% (!) 12 week retention across all collectors<br \/>80%+ of eligible users join LE pack drops<br \/> 300k+ in line this morning for Cool Cats drop<br \/> 98% (!!!) 12 wk retention across activated* users <\/p>\n<p> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/NBATopShot?src=hash&amp;ref_src=twsrc%5Etfw\">#NBATopShot<\/a><\/p>\n<p>\u2014 Roham (@rohamg) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rohamg\/status\/1374103328095805445?ref_src=twsrc%5Etfw\">March 22, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u00a0<\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_do_I_research_the_market\"><\/span>How do I research the market?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">Some of the better-known NFT news sources include Steinwolds <\/span><i><span style=\"font-weight: 400\">Zima Red<\/span><\/i><span style=\"font-weight: 400\"> podcast and newsletter, Delphi Digitals Delphi Daily, Bankless and The Defiant. Art platforms such as SuperRare also feature interviews with artists and other content. <\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\"><br \/><\/span><span style=\"font-weight: 400\">In addition, you can follow as many NFT accounts on Twitter as possible  including WhaleShark, DCL Blogger, Loopify, Linda Xie and more  and get involved with NFT communities on Discord, such as those of OpenSea and Token Smart. Zirlin says the Axie Infinity community on Discord is the best way to learn how to raise Axies. I suggest becoming a community member by joining the Discord and meeting the other Axie trainers. Talk to other players that have had successful journeys and try to emulate their paths, he says.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gedevani says your time is well spent browsing social media, listening to podcasts and experimenting with projects. Thats the fastest way to learn, he explains. Follow the builders\/investors in the NFT community who have been through all the ups and downs and are best positioned to navigate this market.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Final_words_of_advice\"><\/span>Final words of advice<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400\">We are still in the early days for NFTs, and no one really knows how the market will develop, so theres an abundance of caution all around. Matsumura notes that in the current bull market, everyone can appear to be winning and making large paper gains, but sentiment can suddenly flip. Some of those things will go to zero and stay at zero forever, he says.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Dizon encourages buyers to do as much research as possible: Do your homework, make sure you love what you are buying and can afford it, then you can pull the trigger. The best time to sell an NFT is when everyone else is FOMOing in. The worst time to sell an NFT is when you need the money.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Steinwold says a long-term mindset is likely the key to success. We are in a frenzied period right now so be thoughtful in what you purchase. Ask yourself: will this NFT be around in two to three years? He concludes:<\/span><\/p>\n<blockquote class=\"pullquote align-center\">\n<p><span style=\"font-weight: 400\">The NFT zeitgeist only caught on to a wider audience the past few months and this revolution will take many years so always play long-term games with long-term people.<\/span><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/magazine\/2021\/03\/31\/this-is-how-to-make-and-lose-a-fortune-with-nfts\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#This is how to make \u2014 and lose \u2014 a fortune with NFTs&#8221; &lt;p&gt;&lt;b&gt;The rise of nonfungible tokens, or NFTs, has been nothing short of astounding this year. Google searches for NFT are up over 600% since mid-February, hitting initial coin offering mania levels, and the top NFT platforms are &lt;\/b&gt;&lt;a rel=&#8221;nofollow noopener&#8221; target=&#8221;_blank&#8221; href=&#8221;https:\/\/dappradar.com\/nft&#8221;&gt;&lt;b&gt;turning&#8230;<\/p>\n","protected":false},"author":1,"featured_media":215760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/03\/magazine_NFT.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-215759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/215759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=215759"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/215759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/215760"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=215759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=215759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=215759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}