Crypto downturn makes NFT artists get creative

After the fiasco of loot boxes and expensive micro-transactions gamers are hesitant to embrace market forces in games, as it could lead to more expensive experiences. Or it could lead to a levelling playing field and greater access for gamers to make or invest in games. The unique identity and ownership of an NFT is verifiable via the blockchain ledger.

The next step towards a single, persistent metaverse will likely make use of NFTs' interoperability, enabling users to move virtual items between different metaverse platforms. For gaming, non-fungible tokens could be used to represent in-game items like skins, potentially allowing them to be ported to new games or traded with other players. A "fungible" token, by contrast, is one that is replaceable with another one identical to it. Ether is the fungible token that trades on the Ethereum network, meaning one Ether is identical to another. One Bitcoin can be exchanged for another Bitcoin because they have the same value. More and more artists are turning to the Solana blockchain to create NFTs, as this is carbon neutral and has lower 'gas' fees – the cost of registering the NFT.

As more artists and creators make use of NFTs to secure and monetize their work, this number will only increase over time. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also work to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.

Just as an organizer of an event can choose how many tickets to sell, the creator of an NFT can decide how many replicas exist. Sometimes these are exact replicas, such as 5000 General Admission tickets. Sometimes several are minted that are very similar, but each slightly different, such as a ticket with an assigned seat. In another case, the creator may want to create an NFT where only one is minted as a special rare collectible. If you contribute to ethereum.org, you can claim a POAP NFT. These are collectibles that prove you participated in an event. Some crypto meetups have used POAPs as a form of ticket to their events.

Celebrities are also getting involved, either as investing as collectors, or creating their own NFTs . Some of these celebs are using their new NFTs in media projects, while Madonna made headlines when she partnered with Beeple to create her Mother of Creation NFT project. Presently there's a struggle in gaming between NFT developers and traditional gamers.

Because of the high demand for many types of NFT, they are often released as 'drops', much like with events, when batches of tickets are often released at different times). This means a frenzied rush of eager buyers when the drop starts, so you'll need to be registered and have your wallet topped up and ready to spend. Millennials appear to be the largest group buying NFTs, while Gen-X and Gen-Z are coming in close behind. There are also a growing linear art and corporate communities that are picking up NFTs as investments are showcasing them in the receptions of offices and hotels. Is one that continues to be asked by creatives around the world.

NFTs have potential for other use cases as well, such as companies tracking their internal resources or platforms verifying subscriptions and use. They're chiefly used for "flexing"—demonstrating membership of an exclusive fraternity, with owners using them as avatars on social media sites. Indeed, the craze has prompted Twitter to roll out plans for verification of NFT avatars, to prevent people from passing off saved CryptoPunk images as the real deal. And we could be seeing them on the silver screen soon; Larva Labs hassigned with United Talent Agency to explore bringing its properties to film, television, video games, and more. Even payments giant Visa has got in on the action, snapping up CryptoPunk #7610 as part of its collection of "historic commerce artefacts". Non-fungible tokens, or NFTs, are digital assets that are provably unique.

Rug pulls accounted for 37 percent of all crypto-related scam revenue in 2021, according to one analysis. While land in Decentraland and The Sandbox is extremely limited, Upland has mapped out real-world addresses into a play-to-earn metaverse game. Since there's so much real estate in Upland, you can own a plot of land for as little as a few dollars. Prime locations sell for large premiums, and there are plenty of options to choose from within Upland. Upland's native token, UPX, is used as an in-game currency which can be used to buy and sell land.

“Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing.

Once offline and off-blockchain, such as real estate or a physical piece of art can be linked to NFTs, then NFTs can verify ownership of items beyond images and videos. Unlike a unit of bitcoin, however, each NFT is completely unique, so it can't be exchanged like-for-like. The file stores extra information that elevates it above pure currency and brings it into the realm of, well, anything, really.