NFT (Non Fungible Token) fever generates revenue of millions of USD. Can a digital designer like me do the same thing?
Summary of author Hatti Rex’s Vice post about the experience of selling the work in NFT (non-fungible token).
When I first heard of the NFT, I thought it related to the NFL (American Football League) or cryptocurrency. Originally just like playing indoors and not “financial” savvy, I decided to ignore it.
However, a few weeks later, news about artists making millions of dollars from selling NFT works caught my attention. Immediately, I called my roommate to ask for an explanation of the NFT.
I tried selling the first NFT with the desire to become a millionaire. Photo: Vice.
What I know about NFT
I know that cryptocurrency works on blockchain, block-linked mechanism of data. That data is controlled by networks of computers around the world. They are presented in an encrypted form, also known as a hash.
The Non Fungible Token, or NFT, is the only crypto token based on Ethereum, the world’s second most valuable cryptocurrency after Bitcoin. They are essentially immutable code that proves that you are the owner of a certain photo, music or video.
While it’s not directly exchangeable, ownership of the item can be resold. Of course, some people can take screenshots, record NFT tracks, and then share them on the Internet. Even so, it’s far from actually owning them.
“People use computers more because they can’t go out (in the midst of a pandemic). That plays an important role (making the NFT popular),” said Elena Zavelev, CEO of the Cryptocurrencies and Turmeric Fair. Digital (CADAF) contends that 2020 is a pivotal time when cryptocurrencies and digital artwork both get more attention.
Many artists have to “queue” to wait to sell their works on the NFT because the demand is too high. Photo: Vice.
While Zavelev believes that NFT works are sold based on collectors’ tastes, my searches on the NFT exchanges reveal that the list of the most “expensive” works tend to be 3D, inspired. from Internet culture.
According to Zavelev, the advantage of NFT platforms is a direct selling solution, no programming skills required. Many artists have to “wait in line” to sell their works because the demand is too high.
I found it OpenSea, NFT can sell works immediately without “queuing”. The platform has sold valuable works such as the CrytoPunk avatar set. Being impatient, this is probably the right platform to sell my first NFT.
I used a GIF from 7 years ago to create my first NFT. Photo: Vice.
The first NFT made me lose more money 100 USD
First of all, I have to buy some Ethereum, the blockchain-linked cryptocurrency of NFT items. Thanks to a roommate, I created a crypto wallet on Coinbase. Once the purchase is over, I have to move them into an app called Metamask.
Next, I have to choose an image to “mint” into NFT – the process of linking the image to the Ethereum blockchain. I chose the GIF created by the meme “Persian Cat Room Guardian”, which attracted more than 7 million views above Giphy. The cost of casting the photo into NFT is 0.066156 ETH (120.21 USD).
Can’t wait for the photo to go on sale without a guarantee, I set a 3-day sale limit. On the second day, I reduced the starting price of the photo to the same amount 34.58 USD. If I were to sell it at this price, I would lose 71%.
Selling my first NFT picture cost me more than $ 118. Photo: Vice.
When contacting Zavelev, she says that this is not the right time to sell it. Obviously I don’t know what I’m doing. Finally, the photo NFT I also have buyers with prices 1.63 USD, meaning I lost … more 118 USD.
It seems I’m not the only one experiencing this feeling. Even Beeple, who makes tens of millions of dollars from the NFT, said the item’s boom was a “bubble.”
There are many articles on the Internet warning that NFT sellers could suffer losses, if the money earned from selling NFT is lower than the cost to “mint” (which is what I go through). Not to mention the dangers of fraud, environmental impact or piracy. It seems that getting rich from selling NFT is not as simple as I thought it would be.
According to the Zing / Vice
The world’s most expensive NFT author has to pay “huge” taxes
Not only is there any income tax, but both sellers and buyers are taxed on the cryptocurrency used in this transaction.