Welcome back to Comprehensive Mind! In today’s article, We’ll show you three forthcoming NFT projects that will make you wealthy in 2022. So make sure you read all the way to the end.
Short History of NFT
An NFT is a digital asset that depicts real-world components such as art, music, in-game items, and films. They’re frequently bought and exchanged online, and they’re usually encrypted with the same software as many other cryptos.
Despite the fact that they’ve been around since 2014, NFTs are becoming more popular as a way to buy and trade digital art. NFTs have been the subject of $174 million in spending since November 2017.
NFTs are also one-of-a-kind, or at least one of a very short batch, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, managing director of Yellow Umbrella Ventures and chairman of the Cascadia Blockchain Council of the Washington Technology Industry Association.
This is in direct contrast to the great majority of digital products, which are almost always available in virtually unlimited quantities. If a certain asset is in high demand, reducing its supply should potentially raise its value.
Many NFTs, on the other hand, have been digital works that already exist in some form elsewhere, such as legendary NBA short clips or securitized variants of digital art that are already circulating on Instagram, at least in these early days.
For example, prominent digital artist Mike Winklemann, often known as “Beeple,” created “EVERYDAYS: The First 5000 Days,” maybe the most famous NFT of the moment, which sold for a record-breaking $69.3 million at Christie’s. Individual images—or even the entire collage of images—can be accessed on the internet for free.
So, why are people willing to pay millions of dollars on something that might be screenshotted or downloaded easily?
Because the buyer can keep the original object in a non-financial transaction. It also includes built-in authentication that serves as a confirmation of ownership. Collectors appreciate the “digital bragging rights” almost as much as the item itself.
Non-fungible tokens (NFTs) appear to have erupted out of the ether this year. These digital assets are selling like 17th-century magnificent Dutch tulips, with some costing millions of dollars. They vary from art and music to tacos and toilet paper.
Is it worth the money—or the hype—to invest in NFTs?
Like dot-com fever and Beanie Babies, some analysts predict they are about to bust. Others believe that NFTs are here to stay and will forever change the way people invest. As a result, we’ve compiled a list of the top three forthcoming NFT projects that will undoubtedly make you wealthy.
3. Decentraland (MANA)
Decentraland (MANA) is an Ethereum-based virtual reality platform that allows users to develop, experience, and monetize content and apps. In this virtual environment, users purchase pieces of land, which they can then navigate, develop, and monetize.
Decentraland was established in 2017 as the result of a $24 million ICO (ICO). After a closed beta period in 2019, the virtual environment was offered to the general public in February 2020. On their LAND parcels, users have created a variety of interactive experiences, including interactive games, sprawling 3D scenes, and a variety of other interactive activities.
The two tokens utilized in Decentraland are MANA and LAND. MANA is an ERC-20 token that must be burned in order to obtain non-fungible ERC-721 LAND tokens. MANA tokens can be used to buy a variety of avatars, wearables, names, and other products on the Decentraland marketplace.
Ariel Meilich and Esteban Ordano co-founded Decentraland, and they continue to advise the project even though they have stepped down from prominent roles. Ariel Meilich was the project lead at Decentraland between 2017 and 2020, and he is a serial entrepreneur who has launched a number of different businesses, including an internet translation service and a CRM platform. He was also an analyst at Charles River Ventures, a well-known venture capital firm in Silicon Valley.
Decentraland’s previous tech director, Esteban Ordano, has a long and diversified history in the cryptocurrency business, having worked as a software engineer at BitPay, Inc., an advisor to Matic Network, and owning his own smart contract development firm, Smart Contract Solutions.
Despite the fact that Ariel and Estaban are no longer leading the project, the newly founded Decentraland Foundation continues to work on Decentraland. Decentraland is a platform for content creators, businesses, and individuals looking for a new artistic medium, a new way to make money, or a new way to entertain themselves.
The Decentraland gameworld, also known as the “Metaverse,” is divided into 90,601 distinct LAND parcels, each of which is represented by a non-fungible ERC-721 token. Each LAND is exactly 16 m x 16 m (256 square meters) and can be found at a certain point in the Metaverse.
Though LAND owners have unlimited control over how their plot is developed, much of the Metaverse is divided into numerous districts, each with its own size and concept. These districts were created through individual MANA token crowd sales, and LAND parcels in these districts cannot be sold.
As of January 2021, the cyberpunk-themed Aetheria is the largest district, with a total of 8,008 LAND. Decentraland is also one of an increasing number of initiatives that use a decentralized autonomous organization (DAO) framework to make governance decisions.
As a result, MANA toker holders have a say in how the Decentraland world works, including proposing and voting on policy changes, forthcoming LAND auction information, and the types of content allowed in the Metaverse.
In addition to providing a creative outlet, many Decentraland users currently monetize their LAND through leasing, advertising, and sponsored experiences. Other users profit by creating and selling items on the Decentraland marketplace for MANA tokens.
2. Proof of Beauty
Proof of Beauty is another noteworthy NFT project that tracks the Ethereum blockchain’s history. Proof of Beauty’s mission is to honor and promote Ethereum blockchain heritage while also generating awareness.
The first book in Proof of Beauty’s NFT series is HASH. It allows you to create gorgeous NFT artworks from your blockchain transactions. Most notably, Proof of Beauty was the source algorithm that enabled Jay-Z to acquire CryptoPunk.
In layman’s terms, Proof of Beauty combined transactions and converted them into lovely shapes, textures, and color combinations.
CryptoPunks is one of the first non-fungible token projects based on Ethereum. An algorithm generates 10,000 24×24 pixel photos with random qualities, such as a person wearing a hat or smoking a pipe, for the project. While you could receive a CryptoPunk for free (less a transfer fee), the shortage of digital photos and rising demand for NFTs has led the price to skyrocket.
CryptoPunks was built by Larva Labs, a two-person development firm that specializes in everything from mobile games and utilities to web infrastructure, digital design, and art. The team designed a pixelated character generator with inspiration from the London punk movement as well as cyberpunk films and novels.
They made 10,000 unique characters in 2017 and put them on the Ethereum blockchain. Anyone who wants to be a CryptoPunk can do so for free. They’d just have to pay the cost of gas to support the computational energy, which was much lower before NFTs and DeFi.
Larva Labs was able to rescue 1,000 portraits, but the rest were quickly taken. Currently, the only way to obtain a CryptoPunk is to purchase it from the owner. CryptoPunks as a project has a few distinguishing traits. For starters, it’s one of the first NFT projects on the Ethereum network.
It started months before the introduction of CryptoKitties, a popular cat-breeding blockchain game/NFT enterprise. It has merit because it is one of the first attempts of its kind. Second, only 10,000 CryptoPunks will ever exist. As a result, collectors experience scarcity.
Some CryptoPunks portraits are more expensive than others based on their qualities (or lack thereof). There are just nine aliens and 24 apes, 44 of which are wearing hats, 48 are wearing chokers, 78 have buck teeth, and 128 have rosy cheeks.
One CryptoPunk (#8348) contains seven distinguishing traits, whereas the other eight have none. A CryptoPunk with numerous distinct characteristics can be extremely valuable.
For example, CryptoPunk #7804, which portrayed an alien (9) wearing small shades (378), a cap (254), and smoking a pipe (317), sold for more than $7.5 million. However, rarity isn’t the only factor in assessing a CryptoPunk’s worth. Some people collect portraits just because they enjoy how they look.
Since several CryptoPunks have been auctioned at Christie’s and Sotheby’s, they may transition from specialized collector’s items to mainstream art. It’s feasible that fresh bids for the well-known NFTs will result as a result of this.
Individuals who are interested in the tech/art project, on the other hand, appear to already be aware of it. To put it another way, it’s feasible that the demand for NFTs has already peaked. Individual CryptoPunks with unique qualities, on the other hand, maybe able to maintain or gain in value even if the market as a whole isn’t as lucrative as it once was.
Disclaimer: I am not providing any Financial, legal, or tax advice. It’s only my opinion! I am not a professional! I can’t promise anything because I don’t have any inside information! You are responsible for conducting your own research and making your own judgments! This is solely for the sake of education and entertainment!