The Magic Eden marketplace has been live for nine months making the company one of the world’s quickest to achieve unicorn status. Nine months ago I was lamenting Covid restrictions, clearly I should have been setting up an NFT marketplace.
Currently, there is a move for NFT projects to not just be images but that they should also have real utility and this is where the opportunities for companies will be most exciting.
Put simply, something is fungible if it can be replaced by another identical item. A $20 note is fungible, as it is identical to every other $20 note but a drawing I do is non-fungible; it is unique. There is not an identical art work like it anywhere – thankfully.
I have identified six categories of NFTs doing the rounds:
Flex Club NFTs
JPEGs of pixelated punks and indifferent-looking apes are selling for tens of millions of dollars. The high value afforded Flex Club NFTs is hard to fathom.
Bored Apes became a way for crypto investors to flaunt their wealth.
They have the following characteristics:
– There is a limited number of them, so they have provable scarcity, which drives up value
– They offer additional benefits such as entitlement to future NFT drops. Think of this as like a dividend stream from owning shares in a company.
– They offer access to VIP events where you can hang out with other like-minded folks – a bit like joining a fancy country club.
– Finally, digital flexing. A lot of people have made fortunes on crypto and they are keen…
