- Ethereum-based NFTs are interesting investments that are gaining attention from sports leagues and other sectors.
- Lark Davis estimates that the value of 95% of all minted NFTs will eventually go to 0.
As the performance of major cryptocurrencies turns negative, investors are looking for new profit opportunities in the crypto space. Non-fungible tokens (NFT) on Ethereum are starting to gain attention in those terms, after some users have reported exorbitant profits in a very short time.
To help investors make the best decision when investing in NFTs, popular YouTuber and influencer Lark Davis made a video explaining the most important points of this crypto market sector. Davis began by explaining that these types of tokens have been available for years, but have only now become trendy. This is due to stories of investors who have bought NFTs for $1 to later sold it for $150,000.
The YouTuber went on to explain that NFTs have value because they can be verified as rare and scarce. NFTs can be a piece of art, music, or even an item from a video game.
As an example, Davis spoke about the band’s “Kings of Leon” upcoming album release. Launched as an NFT, this album will have unique properties and could eventually be considered a priceless piece of music history. Just like owning a first edition vinyl record, this NFT could have the same value, as a digital version for collectors.
On that note, the YouTuber explained that many sports leagues like the NBA are seeing the value in NFTs to release items for collectors as digital-age collectible cards. The potential for this is priceless for many areas, Davis explained, adding some of the names of the big investors who have decided to invest in the NFT ecosystem such as billionaires Mark Cuban and Chamath Palihapitiya.
How to invest in Ethereum’s NFTs?
Nostalgia, greed, or investment strategy, it is difficult to know what gives an NFT their value. There are some factors such as the context in which they were created, the history, and other intangible elements that cannot be replicated, adding to the rarity of a given NFT. Davis added:
Come on, are you seriously trying to tell me that a first issue of an Avengers NFT of, I don’t know let’s say Hulk, won’t be worth a lot of money to fans? Sure it will, Sure it will be worth it (…). Now you own a piece of history.
However, 95% of minted NFTs, according to Davis’ estimates, will become worthless. Therefore, it is important for investors to not only risk an amount of money adjusted to their budget but also to invest in NFTs that they themselves enjoy, in case they lose all their value.
The best markets to buy NFTs, according to Davis, are OpenSea, Super Rare, Nifty Gateway, and Rarable. Interacting with these markets is possible using extensions such as MetaMask and others. To find “good NFTs,” the YouTuber recommended getting into areas that investors know and added:
I know this may sound obvious, but you have to get in early. That’s what it boils down to. This is especially true for NFT speculators (…). Getting in early is betting on the future that the NFT game or artist you buy will become relevant at some point.