Some of the prices being paid for these pieces is quite insane.
Some of the NFTs on the market are excellent works of art; others seem like something that a 10-year-old would design. We must ask: who and why are we paying for these very expensive NFTs in the first place?
It is critical to understand the psychology underlying these purchases and whether or not there is an additional explanation.
To get a better grasp of NFTs, we’ll first take a deep dive into the subject matter.
Buying jpeg files online has never even occurred to you before. The use of blockchain to validate your identity and grant you ownership of the NFTs you purchase has made this feasible.
Non-fungible tokens (NFTs) are tokens that are unique and cannot be traded. A great thing that has happened to artists is that they now have a new avenue to sell their works for millions of dollars.
Cryptocurrencies, on the other hand, can be traded for one another, unlike non-fungible tokens (NFTs). This is their primary selling point. Having a digital asset that doesn’t exist anywhere else, but solely with you, is the most important aspect.
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Beeple’s Crossroad sold for $6.6 million and is yet another masterpiece.
A picture of Trump relaxing in a garden next to a busy street is shown. Due to the slurs covering his body, this artwork is polarizing. Please keep in mind, however, that this is Crossroad’s sole area of expertise.
The NFT was designed so that if Trump had won the election, he would have appeared as a hero in a crown. Beeple sold on Nifty Gateway, the second most popular NFT platform after Opensea.
Pablorfraile, a Twitter user, was the first purchaser, while the second purchaser remained anonymous. Pablorfraile’s NFT Crossroad investment was one of his most profitable investments.
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2. Ocean Front
In March 2021, $6 million was paid for Ocean Front. As the second-highest bidder in “Everyday: The First 5000 days,” Tron CEO Justin Sun bought it. Beeple has another high-priced NFT on the market. That said, the artist didn’t retain the money he was paid.
He gave the same amount to the Open Earth Foundation, a non-profit organization that promotes environmental awareness.
You must have figured out by now that if people are shelling out millions of dollars for some NFTs, it’s either a masterpiece by Beeple or a Cryptopunk. And I must add that the artwork is fantastic and worth every penny.
3. World Wide Web NFT
NFT code was created by the inventor of the internet, Sir Tim Berners-Lee. Sotheby’s auction house sold it for $5.43 million.
The buyer of the NFT also received a letter from Tim Berners-Lee and a visualization of the code along with the source code.
It is important to keep in mind that whoever buys an NFT does not control the web. That the web will always remain free to use has been made very plain by Tim.
It is also reported that a coding fault in this specific NFT has made it even more valuable.
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4. Stay Free
In terms of NFT, Stay Free stands out as one of the most innovative. The language of US appeals against the NSA’s widespread collection of American phone records is shown in this one, which is a bit contentious.
It was created by Edward Snowden, a well-known whistleblower, and author.
A total of $5.27 million from the sale of StayFree went to the Freedom of the Press Foundation as part of the revenues.
Among the foundation’s primary objectives were the promotion of press freedom and the practice of investigative reporting.
A nonprofit called PleasrDao, which collects NFTs for charity purposes, purchased it.
5. CryptoPunk #7252
There is something odd about seeing so many Cryptopunk NFTs being auctioned for millions of dollars.
That said, it might just be a case of FOMO, or they may truly see some value in the information. As soon as wealthy individuals see others doing it, they wonder why they can’t do the same.
That is, most likely, an acceptable response. A CryptoPunk $7252 with red hair that sold for $5.3 million is an excellent example.
The guy that bought it paid 1,600 ETH for the same anonymous owner. In less than a month, the previous owner of this NFT made a profit of $2.5 million, doubling their investment.
6. CryptoPunk #5217
CryptoPunk #5217 is classified as an ape in the cartoon character collection. An unknown buyer paid $5.44 million for it in July 2021.
The buyer paid 2,250 Ethereum tokens for the identical thing. As of December 2020, the NFT has been sold for only $10,605 on the blockchain.
Thus, in less than a year, he/she achieved a profit of over 500 times.
There is a lot of promise in the Cryptopunk NFTs right now. And anybody who buys and holds them expects that they will rise in value over the next several years.
7. CryptoPunk #3100
He sold for $7.51 million because he was wearing a headband.
For the price of 4,200 ETH, the buyer got the drawing’s unique selling point.
We don’t know who the owner of this NFT is, and we don’t know how to contact them. For $90.5 million, the NFT’s new owner has placed it back on the market.
Assuming this transaction goes through, it will be the most valuable crypto punk and NFT ever sold, beating Beeple’s record.
8. Everyday: The First 5000 Days
The purchase of Beeple’s artwork for $69.3 million was an entirely other proposition.
It is now the most costly NFT ever sold, and it is anticipated to remain so for some time to come.
To create this NFT, Beeple used 5000 artworks that reflect 5000 days of his labor stitched together. The fee is acceptable if you’re a true fan of the subject matter.
The NFT was bought by Vignesh Sundaresan.
Indians may be just as enthusiastic and engaged in this profession as everyone else in the world, according to him.
When asked about the future of art, Vignesh remarked that this was a chance to be part of something that was going to change the way people saw it.
Even though it may take some time for consumers to comprehend the value of this investment, he believes they will eventually.
Additionally, Justin Sun was one of the bidders in this deal, which is noteworthy. After Sundaresan’s last-minute offer of $60.3 million, his was the second-highest bid at $60.3 million.
The following facts summarize the situation:
These new technologies have many negative aspects that still need to be addressed.
There are several issues that need to be addressed, such as money laundering and mining and copying other people’s art.
Additionally, this raises a number of legal concerns. A smart contract can be designed so that the buyer loses money when he sells his NFT, for example.
Although NFTs will face stricter regulations in the future, they will not necessarily suffer because of this.