NFTs Don’t Work The Way You Might Think: Misconceptions About NFTs

NFTs Don’t Work The Way You Might Think: Misconceptions About NFTs

Let me bring up this misconception about NFTs that “NFTs are dead”. I chatted with an editor, and he said NFTs are over; they cannot be the next big thing; the hype is over. This is 100% wrong. At the time of writing, Donald Trump’s NFT collection sold out. 45,000 NFTs sold for $99 each in 12 hours. Seems like the NFT is very much alive.

An NFT, or non-fungible token, is a unique digital asset that cannot be exchanged for other assets on a one-to-one basis. NFTs are often used to represent ownership of digital items, such as art, collectibles, and other unique digital assets. They are typically built on blockchain technology, which allows them to be traded securely and verifiably on the internet. The NFT will always be on the blockchain and not disappear. They are certainly not constrained to profile pictures, which many deem useless.

NFTs can be bought and sold like other assets. Their value can fluctuate depending on several factors, including the perceived value and uniqueness of the digital asset, the creator’s popularity, and the market’s current state. In the case of Donald Trump’s NFT, it answers all the factors above.

Trump is popular and has strong supporters. The current state of the market has been down for months. Trump and his team caught the right timing and gave the down NFT market a push, feeding both crypto natives and non-natives an NFT that seems to be what they want. It also appears to be portraying Trump as a hero.

I saw posts saying: “We need a hero now to save the country from recession.”. Again, I think Trump caught the right angle fitting the current narrative to “save the day”.

The thought that NFT is dead to me is a misconception.

 

Let’s walk you through 10 misconceptions that I see often.

 

  1. NFTs are only used for buying and selling digital art. While NFTs are often used for buying and selling digital art, they can also be used for a wide range of other purposes, including representing ownership of physical assets, collecting unique digital items in games, and verifying the authenticity of digital content.

  2. NFTs are always a good investment. The value of an NFT can fluctuate just like any other asset, and the market for NFTs is still relatively new and volatile. It’s essential to do your own research and invest wisely.

  3. NFTs are only usable on the blockchain where they were created. While an NFT may be created on a specific blockchain, it can often be used on other platforms that support that type of NFT. For example, an NFT built on the Ethereum blockchain can often be used on other applications and platforms that support Ethereum-based NFTs.

  4. NFTs are a form of cryptocurrency. While some NFTs may be bought and sold using cryptocurrencies, NFTs are not themselves a form of cryptocurrency. NFTs are unique digital assets that can be traded on a blockchain, while cryptocurrencies are digital currencies that use blockchain technology for transactions.

  5. NFTs are always expensive. The price of an NFT can vary widely depending on a number of factors, including the uniqueness and perceived value of the digital asset, the creator’s popularity, and the market’s current state. Some NFTs may be relatively inexpensive, while others can sell for thousands or even millions of dollars.

  6. NFTs are not subject to counterfeit.

    While the use of blockchain technology makes it difficult to counterfeit NFTs, it is not impossible. It’s important to do your own research and verify the authenticity of an NFT before buying it.

  7. NFTs are not subject to any regulations. Like any other asset, the buying and selling of NFTs may be subject to certain regulations, depending on the jurisdiction and the specific nature of the NFT. It is a must for you to familiarize yourself with the relevant laws and regulations before buying or selling NFTs.

  8. NFTs are not environmentally friendly. The use of blockchain technology for NFTs can require a significant amount of energy, which has raised concerns about their environmental impact. However, some blockchain platforms are implementing measures to reduce their energy consumption, and the overall impact of NFTs on the environment is still a topic of debate.

  9. NFTs are not useful for anything other than buying and selling digital art. As mentioned above, NFTs have a wide range of potential uses beyond buying and selling digital art. They can be used for representing ownership of physical assets, verifying the authenticity of digital content, and many other purposes.

  10. NFTs are a passing fad. While the popularity of NFTs may fluctuate over time, the use of blockchain technology for representing and trading unique digital assets is likely here to stay. As the technology and infrastructure around NFTs continue to evolve, their potential uses and applications may continue to expand.

It is true that NFTs are digital assets that are unique and cannot be exchanged for other assets on a one-to-one basis. It is also true that NFTs are often built on blockchain technology and can be bought and sold like other assets.

It is untrue that NFTs are only usable on the blockchain where they were created, that they are always a good investment, or that they are not subject to counterfeiting or regulations. It is also untrue that NFTs are only useful for buying and selling digital art or that they are a passing fad.

It is important to understand what NFTs can really do, and what they cannot do. This will help you make better decisions when it comes to buying, selling, or using NFTs.

NFTs don’t work the way you might think.

Here are some key things to consider when it comes to the capabilities and limitations of NFTs:

• NFTs can represent unique digital assets and verify their ownership, but they cannot guarantee the value or quality of the underlying asset. • NFTs can be traded on the internet, but their value can fluctuate and is not guaranteed. • NFTs can be used on various blockchain platforms and applications, but they may not be compatible with all systems. • NFTs can provide some protection against counterfeiting, but they are not immune to it. • NFTs may be subject to certain regulations, depending on the jurisdiction and the nature of the NFT. • The environmental impact of NFTs and their potential uses beyond buying and selling digital art are still being explored and debated.

Huobi’s recent crypto report stated that NFT is one of the most discussed crypto term worldwide. NFT is well integrated with various industries, such as sports, arts, entertainment, and cultural creations, expanding the application scenarios on a larger scale. The same report also stated that Asia has a top interest in NFT. NFTs have recently been recognized to be virtual property subject to legal protection by mainland Chinese courts. This is a significant move in light of the nation’s strict crypto crackdown, which started in 2021. I am bullish on NFT, honestly.

I am ending with a quote and some food for thought.

“If you do not have a digital asset, make an NFT. It will also address many misconceptions you hear from the media or friends. First-hand experience will change your mind. This action will also open thousands of new opportunities for you and the next generation.” – Anndy Lian (me)

Whatever the case, it’s important to do your research and carefully consider the potential risks and benefits of NFTs before buying, selling, or using them. It would help if you experienced it. Not just hearsay.

 

Source: https://hackernoon.com/nfts-dont-work-the-way-you-might-think-misconceptions-about-nfts

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

6 NFT mistakes to avoid for newbies

6 NFT mistakes to avoid for newbies

We all know that the NFT is the next big thing and has many forward-looking potentials and utilities. As you find more NFTs trading in different marketplaces, you start to wonder what you should do next: “to buy or not buy”.

Here are six NFT trading mistakes to avoid for newbies.

Not promoting your NFT

After buying the NFT that you like, that NFT is yours. Most people have this mentality that the creator should be promoting, and as holders of the NFT, let’s sit back to watch the prices grow.

I’m afraid that’s not right. If you promote your copy of NFT, your unique NFT could be the one that gets sold the fastest. Always remember you control your assets. There is no need to wait for the creator.

Flipping it too fast

In the bull market, you have heard from NFT experts that they flipped their NFT 100X in an hour for millions of dollars.

Yes, this is possible back then. Right now, at this bearish market, you need to think long-term. You bought something that you feel has good value and potential. You bought a low price, and you do not mind keeping it. This kind of mentality will bring you far. “Good things take time”- remember this.

Buying it on the wrong marketplace

There are many NFT marketplaces in the space right now. Some of them are more controlled; They filter what can be listed and remove items that are unsuitable, not authentic or with copyright issues. While some are more open, adopting an “anyone can list” model, they have minimum supervision, and anyone can list almost anything on their platform.

If you choose the latter, you could be buying a fake and when you realise that, you are too late. There is no one attending to your complaints. And yes, there is no refund too. Hence choose wisely.

Buying an NFT that you do not like it

This is a real example. I have friends flexing their apes and punks as profile pictures to show they are well-to-do. But the fact is they do not like them. One guy told me he wants the tiger more, and it is his good luck animal, but there isn’t a big blue chip tiger NFT project. So he bought the monkey.

My sincere advice is to buy something you like, not just for the value. Last month, I purchased an NFT at US$0.01 from the Bybit NFT marketplace. It is affordable, has potential, and most importantly, I like the colours, and I am keeping it. This is how it should be. There is no stress about it.

Not using the right tools

There are many groups out there who are giving you tips on which one to buy. You can take their advice, but I suggest you research before agreeing and committing to your first NFT.

Many NFT tools in the market right now help you with your decision. For instance, some tools allow you to check on the rarity types. Some tools will enable you to analyse the volume and tell if any wash trading is involved. Stop guessing. Use the right tools!

Listening to the wrong consultants

NFT creators who listened to the wrong consultants are another common thing. They tend to hire the more expensive consultants thinking they know it all. Based on a survey I have conducted with corporations which have launched their NFT, they paid US$300,000 on average to the consultants to start the ball rolling.

I advise corporations and individuals to look online for resources before hiring consultants. I know of NFT studios who helped fellow creators by sharing their resources for free and helping them to list on platforms with zero cost.

One of the groups that I founded in 2006 is doing just that. They groom NFT rising stars, front the NFTs for them and do not ask a single cent from the creators. I think the spirit of sharing is essential, and they did it all correctly.

I am not here to put up any sale propositions. I want to see more people entering the NFT market with ease. And that is why I launched my book “NFT: From Zero to Hero by Anndy Lian” in August.

An NFT or non-fungible token is a unique digital identifier recorded in a blockchain and used to certify authenticity and ownership. Remember the above. It is not a profile picture or just another speculative product. The real value is in its utility. Do not make this mistake as well.

 

 

Source: https://e27.co/6-nft-mistakes-to-avoid-for-newbies-20221212/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

New to NFTs? Six NFT Mistakes to Avoid

New to NFTs? Six NFT Mistakes to Avoid

We all know that the NFT has many forward-looking potentials and utilities. As you find more NFTs trading in different marketplaces, you start to wonder what you should do next- “To buy or not buy”. Here are 6 NFT trading mistakes to avoid for newbies.

Mistake 1- Not promoting your NFT

After buying the NFT that you like, that NFT is yours. Most people have this mentality that the creator should be the one promoting, and as holders of the NFT, let’s sit back to watch the prices grow.

I’m afraid that’s not right. If you promote your copy of NFT, your unique NFT could be the one that gets sold the fastest. Always remember you control your assets. There is no need to wait for the creator.

Mistake 2- Flipping it too fast

In the bull market, you have heard from NFT experts that they flipped their NFT 100X in an hour for millions of dollars.

Yes, this is possible back then. Right now, at this bearish market, you need to think long-term. You bought something that you feel has good value and potential. You bought a low price, and you do not mind keeping it. This kind of mentality will bring you far. “Good things take time”- remember this.

Mistake 3- Buying it on the wrong marketplace

There are many NFT marketplaces in the space right now. Some of them are more controlled; They filter what can be listed and remove items that are unsuitable, not authentic or with copyright issues. While some are more open, adopting an “anyone can list” model, they have minimum supervision, and anyone can list almost anything on their platform.

If you choose the latter, you could be buying a fake and when you realize that, you are too late. There is no one attending to your complaints. And yes, there is no refund too. Hence choose wisely.

Mistake 4- Buying an NFT that you do not like it

This is a real example. I have friends flexing their apes and punks as profile pictures merely to show they are well-to-do. But the fact is they do not like them. One guy told me he likes tiger more and is his good luck animal, but there isn’t a big blue chip tiger NFT project. So he bought the monkey.

My sincere advice to all is to buy something you like, not just for the value. I purchased an NFT at $0.01 from Bybit NFT marketplace last month. It is affordable, has potential, and most importantly I like the colours and I am keeping it. This is how it should be. There is no stress about it.

Mistake 5- Not using the right tools

There are many groups out there who are giving you tips on which NFT to buy. You can take their advice, but I suggest you do your own research before agreeing to their advice and committing to your first NFT.

Many NFT tools in the market right now help you with your decision. For instance, some tools allow you to check on the rarity types. Some tools allow you to analyze the volume and tell if any wash trading is involved. Stop guessing. Use the right tools!

Mistake 6- Listening to the wrong consultants

NFT creators who listened to the wrong consultants are another common thing. They tend to hire the more expensive consultants thinking they know it all. Based on a survey I have conducted with corporations which have launched their NFT, they paid $300,000 on average to the consultants to start the ball rolling.

I would advise corporations and even for individuals to look online for resources before hiring consultants. I know of NFT studios who helped fellow creators by sharing their resources for free and helping them to list on platforms with zero cost. One of the groups that I founded in 2006 is doing just that. They groom NFT rising stars, front the NFTs for them and do not ask a single cent from the creators. I think the spirit of sharing is essential, and they did it all correctly.

I am not here to put up any sale propositions. I want to see more people entering the NFT market with ease. And that is also the reason why I launched my book- “NFT: From Zero to Hero by Anndy Lian” in August.

An NFT or non-fungible token is a unique digital identifier that is recorded in a blockchain and used to certify authenticity and ownership. Remember the above. NFT is not a profile picture or just another speculative product. The real value is in its utility. Do not make this mistake as well.

Featured image generated via HackerNoon Stable Diffusion prompt of ‘bored apes making sales at a lemonade stand.’

 

 

Source: https://hackernoon.com/new-to-nfts-six-nft-mistakes-to-avoid

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j