The different types of NFTs
Artworks
This is the most well-known subcategory of NFTs
The majority of them are digital works of art that are protected by open certificates of ownership and authenticity from the digital ledger where they are kept
The digital piece “The First 5000 Days” by artist Beeple, which sold for a staggering $69.3 million at a March 2021 Christie’s auction, was the most expensive NFT ever sold
2. Collectibles
The first NFT to ever be introduced as a collectible
They are digital versions of actual collectibles like Pokemon cards or old, mint-condition toys
Curio Cards were the first significant NFT collectibles to be released, and since then, a number of additional collectibles have gained popularity, including Bored Ape Yacht Club, Cryptopunks, Cat Colony, Meebits, and others
Bored Ape Yacht Club has proven to be the most expensive digital collectible out there, and they are a collector’s joy
3. Sports Memorabilia
One of the most popular NFT categories right now is sports memorabilia, and the NBA Top Shot is the most well-known NFT in this segment
A video clip of memorable sports moments is typically included in this kind of NFT
The LeBron James Dunk, Throwdowns (Series), which features footage of Lakers player LeBron James dunking the ball, is one of the most well-known NFTS in this category
One of the most expensive Sports Memorabilia NFTs ever, it sold for more than $380,000
4. Video-Game Assets
Players participate in these NFT-based video games in order to win prizes like cryptocurrencies, digital assets, or other NFTs
The first NFT video game asset was Axie Infinity, which led to the rise in popularity of games like CryptoKitties, Gods Unchained, Sorare, etc. among gamers
5. Virtual Land
This applies to real estate both in the Metaverse and in video games
Although it may appear to be a completely useless asset with no practical uses, it has a lot of promise
The virtual plot of land can be used to make virtual assets, install adverts inside video games, etc
6. Memes
Nobody could have predicted a few years ago that memes would have any monetary worth linked to them, but as a result of the NFT wave, memes have also turned into valuable digital assets
In June 2021, the first Doge meme went for $4 million
Memes like Disaster Girl, Bad Luck Brian, Success Kid, NyanCat, and others have been highly prized and sold for astronomical sums, making their creators extremely wealthy and the meme market prosperous
Over $470,000 was paid for the disaster girl meme
7. Domain Names
These are cryptocurrency domains created on a blockchain, such as Ethereum or Binance Smart Chain
They have more than 500 domain extensions, with “.eth” being the most popular
Crypto domains are a sought-after asset since they are independent of any centralized authority
Additionally, they can be used to link crypto-wallets, which is a capability that is not available with non-NFT domain names
The fact that most browsers do not currently support the crypto domain is their largest drawback
8. Music
One of the most recent developments in NFT madness is this
Before releasing their albums on typical streaming platforms, artists pre-release them on NFT markets
Customers can purchase a portion of the record, such as a share, and when it is published through conventional channels, they are entitled to a portion of the album’s revenues
Although this trading strategy for Musical NFTs is still relatively new, many transactions do follow this pattern
For instance, in March 2021, numerous NFTs of the Kings of Leon album “When You See Yourself” were sold
9. Ticketing
Ticketing has not been left behind by the numerous advances brought about by the advent of NFTs in daily transactions
On blockchain platforms, event tickets can now be created and later auctioned off by the organizers
Tickets for NFT can also be purchased at a set cost
Because these tickets can also be saved and sold as souvenirs, this would greatly eliminate fraud and create a sense of memorabilia
10. Real World Assets
Up till this point, you might be thinking if NFTs are solely related to digital and virtual assets
However, NFTs also have uses in relation to physical assets
A token called a Real World asset NFT (rwANFt) designates virtual ownership of a tangible item
The token associated with a rwANFT provides legal contracts of warranty, insurance, enforceability, etc., just like digital NFTs do
It also verifies ownership
Since the tokens cannot be faked and the digital ledger offers transparency to prevent fraud, rwANFTs have an additional degree of security
11. NFT Fashion
Sounds crazy, huh? How is it even possible that there is virtual fashion? So, get ready because it is both extremely genuine and has a huge market capitalization
Clothing and accessories created for digital avatars and video game characters are referred to as virtual fashion
For digital avatars, Louis Vuitton and Burberry have released a line of NFT clothing that includes kimonos and sneakers
12. Identity
Due to their non-fungibility and the additional guarantee of transparency provided by the digital ledger, NFTs have begun to garner significant real-world momentum
Providing identifying certificates to people is one of the real-world uses for NFTs
Some examples of how NFTs are used in the actual world for individual identification include Self-Sovereign Identity and Bridge Protocols
13. Miscellaneous Online Items
Anything and everything that hasn’t been covered by the previous categories is included in this category
This covers posts on blogs, Instagram, and other social media
In other words, this includes anything that was issued on a digital ledger and is non-fungible
For $2.9 million, for instance, Jack Dorsey’s initial tweet was sold
REFERENCE
DISCLOSURE:
None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
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