nfts for basic b*tches
From one basic b*tch to another, understanding NFTs are like, not that hard. I mean, even Zuckerberg thinks “NFTs are a 'fantastic gateway' for women to break into crypto.” But you got to learn how to roll a J before you can smoke it, so let’s start with the basics …
What does NFT stand for?
Non-Fungible Token.
What the F is fungible?
Fungible means they can be exchanged for one another if they hold the same value, like crypto. Non-fungible basically means that your digital assets (NFT) can not be replaced. Their unique information is stored in smart contracts on the blockchain.
What’s a smart contract?
Think of a normal contract, but one that is programmed to take effect automatically when certain conditions listed in the contract are met. For example, when your NFT sells in a marketplace, the owners listed on the smart contract will automatically get that money put in their wallet.
Can you give me an example of some NFTS
They have many use cases, including artwork, digital collectibles, music, and items in video games (metaverses). They are usually linked to a specific asset. They can be used to prove the ownership of digital items to the ownership of physical assets.
So like, how do NFTs work?
Blockchain enables the authentication of an NFT's unique identity and ownership. NFTs were first supported by the Ethereum blockchain, but are now supported by other blockchains. Just like physical art, the price of the original file is largely determined by market demand, regardless of whether it is a JPG, MP3, GIF etc. Something important to note though, is that buying an NFT does not automatically guarantee copyright ownership even if the digital asset comes with a license. In other words, the copyright owner may reproduce the work and the NFT buyer may not get any royalties.
What is an PFP NFT collection?
So we know what NFT stands for but now PFP, profile for photo. These are generative collections created using code and rarity properties that buyers usually swap their profile photos out for. Think Bored Ape Yatch Club and Crypto Punks - one of the first collections to do this. They are made of unique qualities (hair type, skin color, accessories, etc) that are given a select number of how many will appear and then coded to automatically combine. These collections function similar to stocks with a traditional company. They are minted, meaning they have their first sale to early collectors, and then once they are all bought, then the group of collectors can decide if they want to sell or hold out. This process then changes the supply and demand amount, which then drives up the price. For example, Bored Ape Yacht club has 10,000 unique NFTs in their collection but only 1,285 are available to buy. Because their supply is only roughly at 12%, their demand and cost is high. Don’t worry if you still have more questions…we will be creating an article specifically on PFPs soon <3
Okay, but what’s the point?
The point is that you’re now buying into an investment that is on chain and has automatic stipulations that can be adjusted by the contract used. For example, one of the first use cases we noticed was artist royalties. Now within the contact, artists will get a royalty for every sale in perpetuity, automatically to their wallet, through the chain. With PFPs, they are ways for community members to join together and own a piece of a collection. While having a strong community, members can connect with each other, add utility to their projects (ex: private owners parties) and help bring the project up.
How do I buy/sell them?
The marketplace is up to you! OpenSea is the largest and most open right now - they have the majority of the NFTs on the Etherum blockchain. However, there are select and curated marketplaces like Rariable, SuperRare and Foundation, which have a smaller collection but hold more value because they are gated by membership.
Once you pick the marketplace and chain you want to be on, then you’re in control of how you’d like to buy and sell.
Setting up a wallet seems hard, can I just use my credit card?
Yes and no - some wallets let you use your credit card, like Coinbase, and some need you to transfer your crypto, like MetaMask. The easiest point of entry that we’ve found is Coinbase, however the market keeps changing. This answer can be different tomorrow with the exponential growth of this space.
Where can I see my NFTs?
The easiest right now is MetaMask, it links directly to your wallet and to OpenSea. However, there are many wallets and chains out there - so this is dependent on where you are buying them and on what chain. However, there are multiple startups out there now that are solving this problem. They are creating multi-chain platforms so you can view all of your NFTs in once place.
Are they a good investment?
This is a great question and the most basic response is DYOR (Do Your Own Research). Beyond having cool art, successful NFT projects are backed by artists and a team of people working on the continued success of the project. For example: Alien Frens, Nifty Castle Deebies and Crypto Coven. They are all backed by teams focused on adding utility to their projects to continually increase the value of holding onto their NFTs.
Alien Frens: Right off the bat, their project was HACKED! However, the artist, Mason, gave back to the community that was hacked the money stolen out of his personal wallet, instilling trust in the community. The project also focuses on collabs, meetups, merch give aways and other utilities to the project.
Nifty Castle Deebies: The NC team keeps adding new mints and derivatives for original mint holders to create. For example, if you own the OG Lil Deebie, then you could have minted their X-Ray and Winky versions to now have 3 NFTs for the price of one.
Crypto Coven: This is a badass project where they are going beyond just the art as well. Their PFP project also has linked powers that will translate into the metaverse they are building. For example, your witch now has attunements that will now be able to give your witch power when they build out their project.
