The non-fungible token industry is booming. There are plenty of examples that confirm the effectiveness of investing in NFT. For example, the animated cat Nyan Cat was bought for 0.58 million USD. NFT called Everydays: the First 5000 Days found a new owner who paid 69 million USD for it.
Non-interchangeable tokens are of interest to those for whom uniqueness and originality are valuable. In addition, a lot of NFT-games are being created now. In them, gamers can be rewarded in the form of digital coins for improving their gaming skills. Recently, one such project managed to raise investments worth 60 million USD. This money will be used to develop an NFT-games platform.
The industry of non-replaceable tokens offers a wide range of opportunities for making money. However, it is necessary to understand how it works. Otherwise, it is extremely risky to invest in such projects. In this article, we will talk about what non-mutualizable tokens and NFT games are.
Basic information
First, let’s understand the basic terminology. When it comes to interchangeable values, you can replace one item with the exact same item. For example, if you exchange 1 BTC with a friend, neither of you will lose anything. One coin can easily be swapped with another.
To understand what a non-interchangeable value is, we can use the example of artwork. Let’s take the painting “Black Square”. It is unique. Even if someone paints exactly the same painting, it will be worth less. A copy and an original cannot be equal.
The Black Square painting is one of a kind. You will never be able to sell a copy for the price of the original if the buyer knows that he is being offered to buy a non-unique work of art.
In the case of the NFT, it is identical. You will not find two identical non-interchangeable tokens. NFTs are created based on blockchain technology. It is impossible to equally replace one token with another. The NFT is the original music, images, and other content.
Non-replaceable tokens are fundamentally different from conventional digital currencies because they are one-of-a-kind. By purchasing or earning an NFT, the user receives a unique and valuable item with legal ownership of it.
Non-mutualizable tokens attract the interest of both collectors and cryptoinvestors. NFT is traded on special services and platforms. There are many websites where users trade such assets.
There are also NFT games that allow gamers to get tokens through a “play and earn” system. Some people buy NFTs for collecting, while others purchase them to participate in play-to-earn games and generate profits.
The principle of investing in tokens is extremely simple. The goal is to buy an NFT at a low price and then sell it at a higher price. It is extremely difficult to predict what the value of such token will be in the future. Perhaps the price of your NFT will steadily increase. However, it is not uncommon for the hype around a particular token to fall, followed by a decrease in its market value.
Thus, buying NFTs can result in both gains and losses. Therefore, one should have a good understanding of the market situation before investing in a specific non-interchangeable token.