The popularity of Non-Fungible Tokens skyrocketed over the last year. NFT emerged as one of the biggest trends in the crypto industry in 2021. Multiple NFTs have been sold for millions of dollars to date, and the industry continues to grow bigger with the increasing participation of people from different backgrounds. Pak’s ‘The Merge’ was sold for a whopping $91.8 million on December 2, 2021, becoming the most expensive NFT ever sold. The potential for huge money continues to fuel the rise of the community. NFT provides creators with an opportunity to present their talent in front of a global audience. Creators and artists can finally get the visibility they deserve. This blog is an explainer for everything you need to know before setting up your NFT.
Global Acceptance For NFTs
Famous celebrities from across the world have joined the bandwagon, adding to the hype. Footballer Lionel Messi launched his NFT collection in August 2021. Snoop Dogg was one of the first global celebrities to step into the NFT world with his own collection called “A Journey with the Dogg.” Indian megastar Amitabh Bachchan sold his NFT collection for about Rs 7.18 crore in 2021. The inevitable rise of the industry has been anticipated by big brands like Nike and Coca-Cola as well. Nike has started using NFTs as a way to certify the veracity of a pair of sneakers. The National Basketball Association (NBA) recently ‘NBA Top Shot,’ a new online marketplace of licensed digital collectables for fans. Beverage giant Coca-Cola also launched an NFT auction on July 30, 2021, for International Friendship Day.
Source: https://www.barrons.com/articles/paks-nft-artwork-the-merge-sells-for-91-8-million-01638918205
The NFT industry is predicted to reach a valuation of $80 billion by 2025 and the rise of NFTs is imminent with the increasing interest of people and organizations in digital collectibles. So the buzz around the NFT market has reached you, and you are eager to create your own? We have got it all covered for you.
Creating Your Own NFT
Here’s a step-by-step guide on creating your own NFT from scratch
Deciding the Item: NFTs are essentially a digital representation of any item that can be deemed unique. Every NFT is unique, and that’s what makes it valuable. If you have decided to create your own, chances are you have already figured out the item whose NFT you want to create. Be it a unique picture, audio clip, or painting, anything that is unique can be turned into an NFT. Before you pick an item for turning it into an NFT, make sure you own the intellectual property rights for that item. Once you figure out the item and have its IP rights, you are set to proceed to the second step.
Selecting the Blockchain: Blockchain is at the center of the NFT ecosystem. NFTs are stored on the blockchain, and you need to select the blockchain you want to use for your NFT. Ethereum is the most popular blockchain among artists and creators. However, there are some other reliable options, such as Polkadot, Tezos, Cosmos, and Binance Smart Chain. Once you have selected the blockchain you intend to use, it’s time to start the minting.
Source: https://venturebeat.com/2021/11/12/forte-raises-725m-for-compliant-blockchain-gaming-platform/
Setting up a Digital Wallet: You will need some cryptocurrency for the initial investment required in the process of creating an NFT. If you don’t have a digital wallet already, set up one for a smooth process. Trust Wallet, Coinbase Wallet and Metamask are some of the commonly used digital wallets. If you have some crypto in a crypto exchange, you need to connect it to the digital wallet for making payments.
Source: https://academy.moralis.io/blog/what-is-a-blockchain-wallet-the-complete-guide
Selecting a Platform: Anyone can create an NFT without having prior technical knowledge. NFTs are created on special platforms called NFT marketplaces. There are several popular NFT marketplaces like OpenSea, Axie Marketplace, Cryptopunks, Rarible, SuperRare, etc. You can decide on which platform to use after taking into consideration some key factors like the blockchain these platforms used and creator fees. OpenSea, for instance, uses Ethereum and Polygon blockchains. The creator fee is 2.5% of the sale. OpenSea is the biggest marketplace, with a monthly trade volume of more than $3.5 billion. Rarible uses Ethereum, Flows, and Tezos blockchains and also provides an option for free minting. After you have selected a marketplace, connect your digital wallet there for future payments.
Mint and Upload: Minting your NFT on platforms like OpenSea is as easy as uploading files online from your computer. Just enter key details, like your collection’s description, and you are good to go. The platform you have chosen will allow you to upload your digital file and convert it into a marketable NFT. After the minting is complete, you can see the collectible on your profile. Let’s move to the final step.
Ready to Sell: After the NFT is created, you need to set up the sales process for selling your collection on the marketplace. You have the choice to decide how you want to monetize your NFT. You can simply set a fixed price and allow the first person willing to pay the price to buy that collectible, or you can set a timed auction where those interested in buying the collection can submit their bid. Alternatively, you can also set an unlimited auction without a time limit, where you have control over when to end the auction.
Final Word
NFT is a lucrative market that allows creators and artists to monetize their art by leveraging technology. It aims to put creators in control of their art, where they are the sole authority deciding the value of their art. Moreover, NFT auctions put power in the hand of creators who can get true value for their work without the involvement of any physical intermediaries. It is important to note that the market is still evolving, and everyone involved here is going through a learning curve. Having proper information about the industry and its functions is vital to reaping the benefits of the NFT ecosystem. So what’s stopping you from unleashing your inner Leonardo?
Can’t figure out where to start? We can help!
We have a team of seasoned business experts and professionals with years of experience who have raised over $500 million for more than 100 companies, including Morpheus.Network, Vulcan Forged, and Landshare. From launch and marketing to full-stack funding advisory, we do it all. Working with companies like Vulcan Forged and RedAttack has helped us gain professional experience in the domain. You could certainly use some of that expertise to launch your own NFT. For more info, contact us at hello@zuvomo.com