Virtual reality and augmented reality technologies are all around us. We can now interact with friends who live far away from us, see what is going on at the other end of the country, enter virtual tours and meetings, go to a beach, or see our favourite artists.
NFTs are a recent discovery, aiming to merge the digital with reality. The purpose of NFTs is to create digital objects or even an exclusive space that can be bought and sold. The potential for NFTs are limitless in an ever growing digital era, this makes it a perfect candidate for future currency.
How do you create an NFT?
NFTs are based on non-fungible tokens (NFT) which are created through smart contracts. They use the ERC-721 standard and each token is unique in its own right. When a new NFT is minted, it is allocated to a single owner. The NFT cannot be duplicated as it will no longer be unique, but ownership can be transferred.
Fun fact: “non-fungible” in NFT means — “not easily divided or replaced if lost or stolen”.
How is the price of an NFT set?
The price is set by the market where the crypto exchanges trade on. For example, if an arbitrary Token increases in value and new users start buying it because of that reason, the token’s price will increase as demand increases. NFTs behave identically — you can sell or buy a NFT at any time through an exchange platform just like other types of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Is NFT a scam? Why are they so expensive?
No. An NFT is not a scam — it is a new and non-traditional type of token or digital asset. However, before buying any crypto assets such as NFTs, one should always do his/her own research about the product to make sure it’s worth investing in.
Traditional crypto tokens and coins are at risk of manipulation by those who control large amounts of funds (UniLion has implemented an anti-whale mechanism for this very reason). These ‘whales’ have the ability to drive prices up dramatically. Since NFTs are a single, non-fungible unit, they are not elastic to these forces — prices are set strictly by demand.
Find out how to beat these whales by staying up to date with UniLion.
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