Looking for oil: what is NFT and how do you make money from it?

For months and maybe years we have been hearing the concept of NFT at every opportunity.

What exactly is it, how does the mechanism work and is it really possible to get rich from it "within days"?

We went out to check

David Rosenthal

20/01/2022

Thursday, 20 January 2022, 15:27 Updated: Sunday, 23 January 2022, 10:05

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About a year ago, Christie's Auction House announced that it would for the first time offer a digital blockchain artwork - a 5,000-piece collage of 'Biffle' - digital artist Mike Winkelman. Bids started at just $ 100, but quickly skyrocketed to millions, before the piece sold for an unprecedented amount of no less than $ 69 million.

Bipple has become a heavy millionaire and he sends thanks for a unique technology that pads the bank accounts of hundreds of thousands more around the world every day. It's the hottest thing today in the world of blockchain, and countless commercial entities have realized that there's a gold cache here.

Whether it's Quentin Tarantino, who used it to sell part of his script, the creators of The Simpsons who sold through the technology gold statuettes of characters from the series, and not Messi, who did not have to work another second in his life, but of course did not resist the flow of several million dollars. .The wave has reached everywhere - Nike has also released shoe models that are sold this way.

The question is what about us?

How can we too jump on this bandwagon?

Is it really that lucrative and what are the risks involved?

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Without prior knowledge do not even think about it (Photo: ShutterStock)

The way to make a decision first goes through the basic understanding of this technology. The literal translation of NFT is Non-fungible token - an irreplaceable token, based on blockchain technology, similar to the well-known and beloved Bitcoin. In fact, the token represents digital ownership.

In order to simplify the matter, we will explain better: Suppose you are a creator who presents your work on the site and does not really want anyone else to use it, print it easily and claim to own it. The solution is simple: NFT technology allows you to save and mark it in a way that defines you as its original owner.

Accordingly, even if you want to sell it, the way is paved - all you have to do is transfer the ownership to another party, for a fee of course, which makes it its owner. He too, like you, is protected and sleeps quietly knowing that it cannot be copied.

And this can be explained as well: when a person purchases, for example, a painting, he does not acquire the copyright in the work and can not, for example, duplicate the painting he purchased or prevent others from doing so.

All he has is a specific ownership in a physical work, with the NFT being a stamp of being the original work.

The buyer can display the work in his home / office and the like, decide to sell it or give it as a gift.

$ 10 billion market

In fact, NFT technology has been around for over 10 years, but it hit the mainstream in late 2017 with the CryptoKitties craze, which allows people to purchase and "multiply" limited editions of digital cats using cryptocurrencies.

The corona, too, which has left hundreds of millions of people around the world hidden at home and with money they wanted to invest, has given it a huge boost.

In the last three quarters of 2021, sales in the NFT market totaled more than $ 10 billion, with worldwide sales already reaching about $ 775 million, in September alone - a jump of almost 4 times compared to August, when sales were About $ 200 million.

Strong in the cryptographic world.

Jack Dorsey (Photo: GettyImages, Joe Raedle)

The market really does not end with the sale of paintings.

For example, Twitter founder Jack Dorsey offered a screenshot of his first tweet in 2006 at a blockchain auction on March 5, and bids quickly jumped to more than $ 2.5 million.

The NBA Top Shot, a site for NBA fans from around the world that collect footage of the big moments from the games, has reached sales of more than $ 400 million.

According to CryptoSlam, the company reached sales of about $ 10 million in 24 hours, with more than 100 million documented moments sold.

The parent company behind the site, Dapper Labs, is expected to raise $ 250 million soon, valued at $ 2 billion.

So how do you make money out of it?

Billions of dollars in trading already exist and hundreds of thousands around the world are taking part in it, but how can you make money in it too?

The rules of the game are quite simple - you purchase digital ownership of a work for a small amount, and hope that the price will increase later. The difference between the values ​​is your profit. And you need to know one more essential thing: since the NFT is equivalent to an original certificate of ownership of a work and since it is possible to duplicate several copies of it - its value increases or decreases depending on the number of its duplicates. The Israelis, known for their well-developed business senses, were not far behind. Currently, there are several groups of entrepreneurs in the local market, along with investors who specialize in investing in NFT-based projects.

For example, HYPERSLOTHS - a huge project whose entire image revolves around the 'lazy' animal. Behind him are three entrepreneurs, led by one of the leading 3D artists in Israel - Yevgeny Karczak, while in his portfolio you can find, among other things, projects he has done for huge companies such as Disney, Coca-Cola, Google, Renault, Direct Insurance and more. El Yevgeny's friend Roni Liani - a marketing strategist and entrepreneur in the digital field and Dor Levy - has an economic influence in the world of cryptocurrencies. The three are involved in a series of projects in the field, with their flagship being the project that includes a collection of no less than 8,000 unique three-dimensional works. According to them, the venture also includes a unique service designed to enhance the collecting experience for each of the holders of items from the collection.

The big question is why put the chips on this card?

According to Liani, "thanks to the fact that the field is relatively new, there are many opportunities that can be taken advantage of. Anyone who studies the field, researches the works and the companies behind them - can make a lot of money from buying and selling works."

The Lazy of Yevgeny Karczak.

Is this what will make the artist rich? (Photo: Daniel Edri)

And examples of Israelis who made good money are not lacking. Dan Ivri, a prominent investor in the field, says of his experience: "The wisdom is to buy the work right at the time of its issuance, but such that the talk around it is worth it will usually increase as a result of the artist's uniqueness and interest in the market. It is certainly possible to reach a profit of hundreds of percent a few days after the issue. "

But as you can guess, not everything is rosy and the risk is not low at all, especially if you are not exactly one of the sharks in the field. "I also got stuck with works whose value did not increase, but I have patience. At most, I will end up selling them at a tiny profit," he says.

Dan Ben-Ari, a hitmaker in his thirties, is also a very skilled investor in the field, agreeing to share his insights: "You can get lost easily and need to be focused and mostly based on existing social media knowledge. "Enter the market on the blind. Be smart investors who shave the beard of the masses."

Want to invest?

First you will learn the field

How to join?

The first step is to have a "wallet" that allows you to purchase digital coins.

A short tap on Google will bring up a host of options for opening such a wallet.

Next, once you have opened your wallet, you need to purchase virtual coins.

Next, you need to connect to one of the many platforms that enable the purchase of NFT through your virtual wallet.

Make sure that the store where you buy the NFT is recommended by other users.

In conclusion, it is important to study the field before entering it and research the projects before you invest in it. Unfortunately, reality shows that there are all kinds of sites that exploit the innocence of shoppers on the Internet. And do not deliver the goods you purchased from them or, worse, steal your details and misuse them.

• Of money

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• NFT