You might have asked… How do NFTs gain value? The old saying “beauty is in the eye of the beholder” is still on show today, and we can see it more and more with NFTs. There are many aspects of NFTs that dictate their value. Learn more in this article!
Sandbox: An exchange for buying and selling NFTs
It’s no wonder some have sold for millions and others for a few dollars. Now that’s not to say that those aren’t good, maybe they don’t have enough hype around them or they don’t have a storyline interesting enough to attract a crowd.
With that being said, there are various ways that NFTs can grow in value, so let’s see what they might be.
The Team
The artists, programmers, project managers, creative directors, and believe it or not, influential individuals can all be of huge benefit to the popularity and value of an NFT.
The artist is the brains of the operation, they ultimately create what you see. Without them, there would be no NFT. Now there are many different artists, some popular like Beeple, who sold his NFT of The First 5,000 Days for $69.3 million, and some unknown artists who are breaking into NFTs.
That doesn’t mean that they don’t know what they are doing, they just haven’t gained their deserved popularity. Influencers and known individuals that are in the world of cryptocurrencies add a lot of value to an NFT collection.
If they get involved or invest in a collection you can be sure that the value will go up. When Bored Ape Yacht Club and Crypto Punks gained popularity, you saw a sea of celebrities buying and investing in the NFT collections.
This is a great example of how influential individuals can make or break the value. Overall, the whole team is there to bring the NFT to life, to encompass the art and story into one.
The Storyline
What’s the story? If the collection doesn’t have an attractive storyline, it most likely won’t attract much of an audience. This is where you learn the purpose of the collection and the driving force behind why individuals should find themselves buying the NFT.
The story adds value because people like you and can connect to it. We can find ourselves through the story and the NFT we purchase. Without a captivating story, it is hard for a collection to earn its place.
The Roadmap
Individuals can tell a lot from an NFT collection’s road map. If you’re looking to invest in a collection that you would like to benefit from, then this is something to look at.
The roadmap can add a lot of value to a collection, informing you of the perks and what the team’s plan is for the collection. This is where you will see what they are offering, and it dictates the value of a collection.
Collections like Bored Ape Yacht Club offer exclusive yacht parties for their NFT holders and are even releasing their own Metaverse with special perks for their holders.
If you’re looking to buy your NFT, looking at the roadmap is necessary.
Miscellaneous
These are the NFTs that will always have a stake in value, without necessarily having a roadmap, a storyline, and other factors that collections would usually require. This is where NBA top shots enter the picture.
As you may know, the NBA and basketball, in general, will always be a phenomenon in the sports world. NBA top shots allow you to purchase NFTs and own iconic moments that occurred in basketball history.
Overall
All in all, the value of NFTs is dictated by many factors. The importance of a good team, influential individuals, storylines, and a roadmap cannot be downplayed. And in time, your NFT can grow in value.
This being of course if you purchase it at the right time. Timing is everything, so as soon as you see hype building around a collection, you should look into it.
So there you have it, folks. We hope you’ve learned how do NFTs gain value. Let us know your thoughts in the comments section below. And while you are at it, drop your email to get insights into your inbox.
