NFT is a one-of-a-kind virtual currency that can take the form of paintings, movies, music, or any other type of digital production. J
By Priyanka Balwa
Non-fungible tokens, better known as NFTs, are gaining traction around the world, especially in the blockchain industry. It has become a trending topic, which is here to stay as technology ushers in a new economy and disrupts old business and business practices. Since celebrities are an influential brand, the goal is not just to engage or increase sales, but to nurture a market that has the potential to uncover more opportunities.
According to analytics firm DappRadar, in the first six months of 2021, it recorded $2.5 billion in NFT sales, which is a significant increase from $13.7 million in sales during the same period in 2020. Moreover, according to the broker discovery and comparison platform, BrokerChooser India has the largest number of crypto owners in the world with around 100 million, compared to around 27 million in the United States and 17 million in Russia.
What are NFTs?
The acronym NFT stands for Non-Fungible Token, which explains almost everything. For starters, “non-fungible” simply indicates that one item cannot be exchanged for another.
In NFTs, a token is simply a certification of validity stored on a blockchain, making currency traceable and accessible to everyone. Accordingly, an NFT is a one-of-a-kind virtual currency that can take the form of paintings, movies, music, or any other type of digital production. They derive their value from multiple factors such as scarcity, creator, uniqueness, utility, and liquidity premium.
Usually, NFTs are minted on a platform where non-fungible tokens are traded. It is known as NFT market. Minting NFTs in the NFT Markets involves wanting to mint NFTs from their account. Artists can sell or display them for visitors to their NFT store. NFT marketplaces have a feature where people can create NFTs within minutes of creating the work.
- Make a cryptocurrency wallet – MetaMask is the most popular cryptocurrency wallet by number of accounts. There are also other wallets, which are compatible with other blockchains besides Ethereum
- Choose an NFT Marketplace – Minting NFTs is like minting a physical coin. It can also refer to converting a digital file into a blockchain-based NFT. As a result, NFT marketplaces allow people to convert any digital file to NFT. Collectors or female artists can exhibit and sell NFT art for profit. Some marketplaces such as NFTically, Foundation, MakersPlace, and Mintable allow people to create and launch their own NFT marketplaces
- Find the best communities – Every NFT project has three benefits. Finding NFT communities can help artists gain utilitarian knowledge of NFT typing for lectures, classes, and personal sessions, create rarity with original works, create a personal community to interact and network.
Please note that there are a few expenses to consider when uploading NFT to the digital space.
First, you will need to pay the gas fee – a common expense for all cryptocurrency transactions. In addition, you also have to pay a certain amount for the site, just like those who participate in the registration of your NFT.
However, the NFT world continues to evolve, and some platforms will allow you to pass the minting fee on to the buyer, or you can still mint a blockchain-backed NFT at no cost.
NFT for female artists
Traditionally, art collectors have relied on galleries, auction houses, and art collecting books to get their hands on collectibles. However, today with the introduction of high-tech NFTs available for collection, the demand for art collection has increased dramatically.
While the rise of blockchain-based digital artwork is remarkable, most of the coveted NFT artwork has ironically been created by men. Take, for example, digital artist Mike Winkelmann, known as “Beeple,” made NFT history in 2021 after selling “Everydays: The First 5000 Days” for over $69 million at Christie’s art auction house.
Alas, there are well-publicized counterexamples to break the chain of male dominance in the NFT world. Famous Hollywood actor Reese Witherspoon has announced that his production company “Hello Sunshine” will develop feature films and TV series based on the Ethereum NFT World of Women (WoW) collection.
NFTs allow creators to exercise their individuality and their voice – to find target investors who resonate with their brands and their art.
How to win with NFT?
NFT platforms provide women with much-needed financial stability, which is not easily achieved outside of the virtual world.
Today, there is a massive updating of the profiles of potential buyers of collectible digital art, which in turn increases the value of the art and promotes the artists. Secondary royalties and full control of intellectual property rights is another aspect that artists benefit from. Consistency and level of involvement in the community is another aspect that artists control themselves, which leads to attracting more investors.
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Looking at current industry trends, NFTs have also brought alternative digital subscription models. This means that organizations have decided to use NFT as an alternative subscription model. For example, the famous Time magazine launched a new initiative TIMEPieces which offers NFTs of 40 artists, as an alternative to Time.
How can female artists make money with NFTs?
- Rent your NFT: One of the ways female artists can make money using NFTs is through what is known as “renting”. Renting an NFT means giving it away for a fixed period in exchange for money. Renting can take place by locking NFTs into smart contracts and collecting rents. Once the rental period is over, their NFT is automatically returned and the transaction is closed. reNFT is one such platform that allows artists to rent their NFT.
- Earn royalties on your NFTs: Blockchain technology helps women artists and creatives earn money through the secondary sale of their art. This is done through smart contracts that help artists track the performance of their works.
- Stake your NFTs: Staking is a mechanism to secure the network against malicious actors and to keep the network safe and running smoothly. Network users can stake their NFTs and tokens to secure the network and keep it up to date. In return for staking NFTs and locking them for a period of time, female artists can earn passive income. Platforms like Kira Network, NFTX and Only1 allow users to stake their NFTs
- Return your NFTs: Flipping means buying an NFT when hit and then reselling it in the same market at a higher price. However, this does not mean that every NFT project can be reversed. NFTs can be very illiquid, so sufficient research is paramount.
- Crowdsource your dream projects: NFTs are a great way to attract investors for artists’ dream projects. Micro-investors can also contribute to the construction of dream projects for women artists and creators. In return, they may get a share of your future earnings or any other service may be provided based on mutual discretion.
For the “women of tomorrow,” NFTs are shaping the future of community-led commerce and entertainment, providing an equal platform for everyone, regardless of gender and financial status. NFTs are not a sprint, but a marathon. Therefore, building an NFT community for female artists is key to the lasting success of the industry.
(The author is AVP-Marketing, NFTically and NFT-Artist ‘Cyber Shakti’. The opinions expressed are his own).
(Suggestions/recommendations regarding cryptocurrencies/NFTs in this story are from the respective commentator. Financial Express Online takes no responsibility for their advice. Please consult your financial advisor before trading/investing in cryptocurrencies/NFT.)