The Basics of NFTs (Floor Price, Buying, Volatility etc.)
Greetings, curious minds and future NFT connoisseurs! I’m Seb Monty, here to transform you from NFT novices to savvy veterans in the exhilarating realm of Non-Fungible Tokens on the Solana blockchain.
Excited? That's good because there’s no time like the present to immerse ourselves fully!
What are NFTs, and Why Do They Matter?
For those who might still be unsure, NFTs, or Non-Fungible Tokens, are unique digital assets that cannot be replaced or replicated.
They’re predominantly known as a trove of collectible images, each with its unique identity. Consider Mad Lads, for instance, a collection that showcases human-like pictures. They’re delightful PFPs (Profile Pictures) and represent your membership in a thriving digital community. The best NFT projects provide community on the holy trinity of platforms—Discord, Twitter, and a sleek website.
Keen to investigate them further? A single click on their socials is your gateway to deeper exploration.
Take Mad Lads as our case study. It was created by Backpack, a reputable wallet company. Joining their community costs about $1500. We’ll delve into research tactics in the next post, but for now, we know that Twitter frequently serves as an ideal starting point.
Navigating the NFT Marketplace
The burning question is: Where does one acquire such intriguing digital assets? The answer is simpler than you might suspect—any NFT marketplace.
Magic Eden leads the pack as the most frequented platform, earning my personal nod of approval for its user-friendly interface.
Others, like Tensor Trade, cater to the more seasoned trader, while Sniper.xyz boasts an arsenal of advanced tools.
The Power of a Profile Picture
On the topic of PFPs, you might spot my Twitter to sport a Degenerate Ape Academy NFT as mine.
I might flaunt my face since I’m a doxxed individual, but adopting a digital alter ego through a PFP isn’t unheard of, regardless of whether or not you choose to reveal your true identity.
The Roller Coaster of NFT Pricing
A crucial reality to brace for in the NFT world — volatility is typical. The ebbs and flows are as common as they are dramatic, with collections like Mad Lads and The Heist swinging in value following their initial release.
The term ‘floor price’ refers to the lowest price an NFT in a collection can be purchased for at any given moment. Inspecting the historical price movements helps us grasp how quickly fortunes can invert in this space.
Understanding NFT Categories
Diving deeper, let’s parse the varieties of NFTs populating the market:
PFP Collections: The likes of Degenerate Ape Academy focus on community building and branding. Crafting a brand from scratch is challenging; not all endeavours will reach the stars.
Play to Earn Collections: Games where your NFT doubles as a gaming asset. Such as The Heist, the allure here pivots on the potential earnings one can reap from gameplay.
Utility-Driven Collections: Collections like The Famous Fox Federation offer a plethora of activities and staking rewards. These may not be exclusively about artwork but the intrinsic benefits of ownership. Another example is SMB (Solana Monkey Business) which is pixel art, beloved but niched.
Wisdom Before Investment
A final word of advice: NFTs are more community than commodity. Owning one isn’t solely an investment but an identity, an extension of yourself. Find an NFT that resonates, and you’d brandish proudly as a PFP. That’s the ethos of our journey here.
Stay tuned as we tackle each ingredient of the NFT phenomenon in the next posts. Until then, let your curiosity lead the way!
Keep learning, keep exploring, and most importantly, enjoy every step of the NFT adventure!
Disclaimer: This is a helpful blog. Follow me on my socials, but remember this is NOT FINANCIAL ADVICE. I am making this content as a community member because it is great to learn crypto, playing on Solana is fun, and it is easy to onboard friends into the space with a game like this.
My opinions are my own; research more if you wish, and if you decide to degen, that is your decision!
Follow me on X: https://x.com/SebMontgomery