Every day there is news in the crypto space about the creation of non-fungible tokens (NFTs) by large companies and celebrities. At the same time, many assets can be sold at fabulous prices.
One of the features of non-fungible tokens is that anyone can create and put up for sale such an asset.
A team from Boosty Labs – a smart contract development company, also offering asset tokenization solutions – has decided to figure out how to issue an NFT token and make money on it.
How to create an NFT
The process of creating an NFT is relatively simple and does not require in-depth knowledge of cryptocurrencies and their underlying technologies.
First of all, you should decide which blockchain to use to issue your own non-fungible tokens. Most NFTs are issued on Ethereum, but there are other noteworthy and growing platforms, including:
- Binance Smart Chain (BSC);
- Flow from Dapper Labs, who created the Cryptokitties;
Each blockchain has its own NFT standards and interoperability with different wallets and marketplaces. For example, a token issued on Binance Smart Chain can only be sold on platforms that support BSC assets.
The VIV3 marketplace on the Flow blockchain or the OpenSea Ethereum platform will not work for this.
Consider the process of issuing non-fungible tokens in the context of Ethereum, the largest NFT ecosystem so far. First you need:
Ethereum wallet like MetaMask, which has support for ERC-721 and other non-fungible token standards;
- A certain amount in ETH to pay transaction fees (taking into account the current dynamics of gas prices, you will need at least $ 50- $ 100).
- There are many marketplaces that allow you to connect a wallet and upload a file to turn it into an NFT. Some of the most popular platforms:
There are services like Makersplace that require registration. The Nifty Gateway provides for a fairly strict selection and moderation of participants.
On this marketplace, you can find NFTs from Grimes, actor Justin Royland and other famous personalities.
Popular lots of the Nifty Gateway platform.
Consider the process of issuing a token on OpenSea, the largest NFT marketplace.
After clicking on Create, you will need to connect an Ethereum wallet to the service.
The next step: when you hover the mouse pointer over Create, you need to select the My Collections item, and then click on the blue Create button.
A window will appear allowing you to upload an image for the new collection, add a name and description to it. Basically, at this stage, you just create a folder for your NFTs.
After that, you can install the banner by clicking on the pencil in the upper right corner.
Now you can start creating your first NFT. To do this, click on the Add New Item button. After that, the Ethereum wallet will again ask you to sign the message.
A new window will appear where you can load an image, audio, video or 3D model as a basis for your NFT.
On OpenSea and many other marketplaces, various parameters can be configured. For example, creators can enable the “Unblockable Content” option that only buyers can watch.
When everything is configured and the fields are filled in, you need to click the Create button below and confirm the creation of the token using the Ethereum wallet. The NFT will then appear in your collection.
Where And How To Sell Or Buy NFT
To sell an NFT on OpenSea, you must first place it in the collection. Then you need to select it and click the Sell button. This will bring up a page with pricing options. On it, you can define the terms of sale, whether it be an auction or a fixed price.
On most platforms, NFT can be traded for Ethereum and ERC-20 tokens. However, some marketplaces only support their native token. For example, VIV3 accepts only FLOW tokens of the blockchain of the same name for payment.
By clicking on the Edit button next to the file from the collection on the OpenSea platform, you will need to sign the message using the wallet.
After you scroll down the page, an option will appear to set up royalties and select assets to receive as payment.
Royalties allow NFT creators to earn commissions from token resale. This is a potential source of passive income, automated thanks to smart contracts.
Inspired by Jack Dorsey’s example, many users turn tweets into NFTs in the hope of selling them for cryptoassets. To do this, they use the Valuables platform.
The screenshot below shows the tokenized first tweet of the Twitter founder and the $ 2.5 million stake made by Bridge Oracle CEO Hakan Estavi. Earlier, Tron founder Justin Sun offered $ 2 million for this NFT. The tweet was subsequently sold to Estavi for $ 2.91 million.
Among famous personalities, not only Dorsey tested the service – the head of Binance Changpeng Zhao received $ 6,600 for one of his tweets. This NFT was subsequently resold for $ 121,000.
Any Twitter frequenter can try their luck on Valuables, you don’t have to be a celebrity. Everyone also has the option to bid on a tweet created by someone else.
Technically speaking, NFT is a small piece of code pointing to a file somewhere on the network. In the case of Valuables, the token contains the text of the tweet stored on the Matic blockchain. It can also point to a tweet image (if any) hosted on a centralized server.
You also need an Ethereum wallet like MetaMask to interact with Valuables. After connecting it, you will need to log in using Twitter in order for the platform to gain access to the social network account.
After that, the Valuables setup is complete. You can bid and list your own tweets for sale. To do this, you need to copy the link to a popular and interesting, in your opinion, tweet and paste it into the paste tweet URL field.
The service will ask: “Do you want to sell the tweet?” Below there will be a blue button with a suggestion to tweet.
After clicking on the button, the service will offer to post a link to the lot.
Once published, anyone can follow the Valuables link, place a bet, and possibly purchase an NFT.
Buying NFT is also not a problem, there are many services for this. Some of the most popular:
- Nifty Gateway;
- Axie Marketplace;
- NFT ShowRoom;
The KnownOrigin trading platform, launched in February 2018, may be of interest to designers and artists. Using the internal token KnownOriginDigitalAsset (KODA) of the ERC-721 standard, users can purchase art objects, as well as confirm the authenticity and authorship of their creation. KnownOrigin offers over 19,000 works of art for sale.
The Pixura project offers templates for NFT marketplaces that allow you to launch marketplaces with any ERC-721 tokens.
The prices of many “works of art” in the form of NFTs can be confusing and shocking.
However, the willingness of buyers to purchase a token for fabulous money confirms the thesis of the Austrian school of economics that value is subjective, and value is not determined by the cost of time and labor.
NFT has yet to prove its viability. So far, the hype around this segment resembles the “ICO fever” of 2017. Then new projects appeared like mushrooms after rain, many – only to hide with hastily collected money from inexperienced players.
Most likely, the NFT hype will not go unnoticed. Developers will improve existing standards and fix potential vulnerabilities. This will leave the most viable projects with a compelling value proposition.