NFT’s to the Rescue
You’ve likely heard of NFTs sometime in the past year; after all, they’ve been the next big trend after crypto. NFTs are part of the Ethereum blockchain. That may sound familiar because Ethereum is a cryptocurrency, but its blockchain also supports NFTs. According to ARTnews, this allows NFTs to consist of an encrypted image or video file accompanied by a digital signature that cannot be duplicated, assuring buyers that their purchase is an authentic copy. Anything digital could be sold as an NFT, from digital art to music; one guy even sold an x-ray of his teeth. It seems to sell NFTs successfully, though; having a platform beforehand or being a celebrity helps because it adds more intrinsic value to your NFTs. But if you’re not a celebrity, you can still make a buck by working NFTs like any other speculative asset, where you buy it in hopes that the value of it goes up someday, so you can sell it for a profit. NFTs are also being used by many as status symbols and memberships into exclusive clubs such as the Bored Ape Yacht Club – one of the most popular NFT projects with a floor price nearing 100 ETH.
But what about the regular folks? Sure, celebs and high-net-worth individuals can enter the space, but what about the middle class? Well, one couple proved that NFTs could be a lifesaver if you’re an artist – selling NFTs to finance their mortgage. An Atlanta-based couple – Thorne Melcher and her girlfriend Mandy Musselwhite, were struggling financially as Melcher, a software engineer, lost her job. Down to the sole income of Musselwhite, who sold artwork, the couple quickly fell behind on their mortgage payments. Losing time and with no options left, the couple turned to NFTs, co-creating a project called “Dastardly Ducks,” a collection of 10,000 cartoon duck NFTs. Within less than six hours of launch, the couple earned just under $120,000, enough to save their home. What do you think about NFTs? And would you try making your own?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.