Last year, we discussed what NFTs are, as well as some common NFT scams and safety tips. We’re now checking in again to give you an update on what’s currently going on in the world of NFTs. But first…
What is an NFT?
NFT stands for non-fungible token. No, they have nothing to do with fungi. When something is described as ‘non-fungible’, it means that it is one of a kind and cannot be copied.
NFTs are digital items that represent worldly objects such as music records, artworks, videos, etc. They are commonly sold online for cryptocurrency and seen by many as collectible items. Because NFTs are assets on a blockchain and all have unique identification codes, proving ownership is no issue.
Bored Ape Yacht Club, CryptoPunks, and VeeFriends are currently three of the most popular NFT collections.
The Status of NFTs in 2022
If you compare the NFT market from 2021 to 2022, you will notice that the hype has dwindled. It seems that since last year, when the buzz around NFTs peaked, people have been steadily losing interest in them.
Many different factors contributed to the decrease in interest in NFTs, but below are some of them:
- Unregularized market practices — There’s no standard method of how to sell NFTs, which creates opportunities for scams.
- Crypto price plunges — The values of cryptocurrencies dipped in 2022, which affected the value of NFTs.
- Unstable investment probability — Due to their decline in value, people are more hesitant to invest in…
