NFTs stands for “Non-Fungible Token” (in Italian “Non-Fungible Tokens“, literally “uncopyable tokens”). But what does it mean? Let’s start by saying that “non-fungible” it means (more or less) that we are talking about something uniquewhich cannot be replaced with something else. To do theexample of something non-fungible, we can think of one collectible card: if you exchanged it for a different card, you would have something perhaps of similar value but which would be completely different. “Token” instead means tokenand that’s intentionally a generic word: NFTs can actually be any digital object such as event, music or art tickets. The latter is precisely the most popular area for which NFTs are known.
People buy NFTs for all sorts of reasons, ranging from having the rights to something collectible to having access to exclusive events to supporting certain artists, but mostly it’s a type of investmentwhich is why art is predisposed to this area.
As a type of investment, NFTs lend themselves to market rules: For example, the value of NFT artworks seemed very high after the success of artists like Beeple. Then, however, when the market collapsed other NFTs like the series of Bored Ape Yacht Club they never recovered and ended up being priced much less than they were bought for. NFTs can therefore certify in digital format an authenticity, the authorship of a work and so on.
But how do you buy and sell NFTs? Like them cryptocurrenciesNFTs are generally sold on sites (marketplace) specificsuch as OpenSea, although some are also sold through auction houses similarly to traditional art. To buy NFTs on special sites, you often need to first buy cryptocurrencies, in most cases Ethereum (but not only).
But how much they are worth and cost NFTs? Since NFT is a generic definition for different types of tokens, It depends what you’re buying. Exactly like a work of art, then, the cost depends on the perceived value. Beeple’s artwork Every day had sold for around $69 million, while Pak The Merge it was sold for 91.8 million dollars in all its portions (as if they were shares) by more than 26 thousand people. However, now perceived as having little value given the relative market collapse, their cost has now fallen greatly. In short, there is no single answer to the question. Like any form of investment, the value of buying and selling depends on the specific NFT and market conditions.
