First of all, I’m pretty sure this is not what you expected when I said that this blog was one where ill talk about NFTs. It still pretty much is but there are some things that I need to show you guys before we move forward with the NFT’s part.

Let's see what IPO is:

• It stands for initial public offering.

• It is when a private company makes its shares available for sale which eventually makes it a private company.

• This makes the company public, which means the company’s fate depends on the people and also depends on how the people decide to work on marketing it which means that it will be able to improve its stock price due to the same.

Now we know how it works in the stock market.

Usually, IPO's when coming out to the public, pose a certain risk which the people well invested in the business for a couple of years will seem to predict and will be able to point out a trajectory of growth or fall of the company considering their previous moves in the biz.

There are scenarios where the company is seen to be taking a huge fall after its IPO is out and it seems to be pretty unbelievable how such companies could collapse after going public.

Uber IPO was a great example where the entire company had begun with a bang in the public sector. Before when the company went public, it gave many promises to the investors, most of which it was not able to live up to. This is a major reason why even 3 years after Uber went public the current stock price still stays below the IPO price.

At the same time, there are situations where the entire company makes way more money being public than what they would have made being private.

Airbnb was founded in 2008 and has raised a total of $4.4 billion in funding. Airbnb went public after reaching a valuation of $1 billion.

Its IPO price was set at $68 per share on December 9, 2020, and it went to 112 percent in just 24 hours when it opened at $146 the following morning on its first day of trading. 

I’m guessing all this is pretty simple to understand. Now let's turn our heads toward how the crypto market works and what implications it has for companies invested in it.

Now let’s talk about ICO.

• The ICO is nothing but the cryptocurrency industry’s equivalent to an IPO.

• In this mirror world, we have cryptocurrency tokens which will be issued by companies with which you can trade with many cryptocurrencies like Ethereum, Bitcoin, Solana, etc.

• This token may also have some utility related to the product or service that the company is offering.

• Like Stock Market, before trading with ICO’s, it is always better to have a certain knowledge about the Crypto Market by understanding the value of the major coins around and their respective gas fees.

I didn't exactly want to begin with IPO but to be honest I felt that they have been floating around for quite some time with which people will be able to relate to what an ICO is.

Now let’s step into the topic that I’m pretty sure is what you guys were waiting for. Yes, it is NFTs.

• NFT or Non-Fungible Tokens are something of the blockchain world that when explained in Layman’s terms can be summed up as calling a Digital Asset.

• Now, this asset can be a painting or a picture from the web or a GIF, or any other form of imagery known to man.

• The NFT can be part of a project which is created by an artist who wants to convert their existing art into NFTs which can give them a wider reach and can also make them much more well known in the digital art world.

• The way NFT stands out is by the fact that the NFT once minted is stored on a blockchain, which means that this very asset is now secured in your hands and cannot be forged or manipulated by any other entity in the whole wide world.

• NFTs' unique data makes it a very simple process to verify and validate the ownership and the transfer of tokens between owners.

• The biggest advantage of an NFT is the very fact that you need to seldom depend on another person with regards to the safety of your valuable asset.

These very features have given NFTs the very importance that they deserve in the web3 world.

The main reason I had brought out the IPO example in the beginning and then the ICO is because both of these represent the same way NFT works.

There are multiple ways in which we can talk about the jump in the price of any NFT of any project. 

• These NFT projects have a certain Blueprint which is what the entire project revolves around and in most cases is the starting point of a project. A blueprint represents a roadmap which is a phase to phase planning of a project. This charts a course on their public mint reveal and their plans in the future.

• The next factor in the success of these projects is their tokenomics. Every project understands the importance of designing a good tokenomics as this will lead to the success of the project.

• Most of the time people invest a major proportion of their time studying the tokenomics of the entire project before investing in any NFTs since they understand that a good tokenomics is the only way to prove the project has a shot of going upwards.

Nowadays, NFTs have been used for many more uses than just assets.

• They have been used for ticketing as in, they have been used as a pass to attend many community events or DeFi pools.

For some of you who may not know what DeFi pools are, they are decentralized platforms that function through smart contracts which allow thousands of investors to participate in seed and private rounds of new crypto projects.

• They have been used as a substitute for loyalty points which you may have observed multiple stores having.

• NFTs are also rewarded to certain winners in the gaming industry as a substitute for a cash prize.

• The possession of certain NFTs gives you voting rights to certain decisions carried out in the community.

• The NFTs smart contracts are usually designed in such a way that every time a transaction occurs with an NFT, the NFT creator gets a certain Royalty percentage.

  There was an instance recently where the NFT’s price jump blew my brain. Yes, now the people who have been following this trend would have guessed it by now. I'm talking about the one and only Okay Bears NFT collection. 

• The Solana project began life on April 26th, with an initial mint price of 1.5 SOL ($147). The NFT collection quickly sold out, and now the price for one stands at almost 90 SOL ($8,850) and still rising.

• In the 24 hours following the mint of the 10,000 bears, OpenSea saw over 187,500 SOL in secondary trading, equivalent to around $18.5 million.

• This was the most traded NFT collection in 24 hours for Solana ever. These figures were one of the best that was ever seen not only in Solana projects but in Ethereum projects as well.

• The project went as far as creating a possibility in changing the NFT culture as we know it.

• After 2 long years of dominance by Ethereum projects, there was finally a shift seen which I’m pretty sure the entire crypto world did not see coming.

With this, I would like to wrap up this blog.

Thank you,

Ramzee