NFTs, short for non-fungible tokens are one-of-a-kind cryptographic tokens that exist on a blockchain. Every NFTs are unique, cannot be duplicated and will contain data about its ownership.
Right now, NFTs often take the form of digital artwork however, NFTs can exist in any form including music, pictures and videos.
NFTs’ values are volatile and are pretty much dependent on the cryptocurrency market. There are a few factors that determine the value of NFTs, namely:
✅ Perceived value ✅ Exclusivity ✅ Timeliness ✅ Scarcity
NFTs can also mean different things to different people. Collectors can see them as investments or collectibles, whereby others purchase NFTs for the benefits they provide like access to events, lower staking rates and many more.
To help you understand NFTs better, here are more in-depth explanations of the factors that affect NFTs prices:
Perceived value is not to be confused with actual value. The perceived value represents the amount buyers/collectors are willing to pay. The more people are willing to pay for it, the higher the price will be.
A classic example is Diamonds. Before 1947, diamonds were just like any other gemstone. However, when De Beers a famous diamond marketing company pulled off a successful campaign, diamonds rose to become a favourite for engagements — spiking their price.
The more exclusive the NFTs, the more effect they would have on their price. For example, the Azuki NFT collection was once seen as an exclusive, hand-drawn collection of its kind, soaring its price up to half a million per NFT. However recently, due to the volatile crypto market, the NFTs are worth way less than before.
People will always want to own something that is part of the bigger picture. For example, Bored Ape Yacht Club is one of the most prominent NFTs currently in the market and their popularity has not yet subsided despite the up and down market of crypto and NFTs.
The more popular the NFT becomes over time, the higher the price would go and the ones benefiting from it the most, are the ones who were the first few to own it.
Like everything else, we are always attracted to something scarce. This is why there is always a big line for items that are marked “limited edition” or “available for a limited time”. The more limited an NFT is, the more likely the price is going to go up.
Currently, FINX is working on 2 types of NFT, the first being Xyrica, an exclusive NFT resembling a butterfly and the second one.. which is yet to be revealed.
As for the Xyrica, there will be 9,999 one-of-a-kind NFT design to choose from, each bearing the benefits relating to Hodl and Burning. If you’re interested in learning about FINX Xyrica, you can read more in this article:
Meanwhile, hold your horses because the official announcement on the NFT release will be happening soon!
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