What is an NFT: everything you need to know
GM: Good Morning, a standard greeting that NFT enthusiasts turned into insider code.
WAGMI: We’re All Gonna Make It, short for the optimism — sometimes deserved, sometimes delirious — around NFT projects.
NGMI: I will not arrive there. An insult reserved for incompetent investors, fraudulent projects and enemies of the NFT in general.
Diamond needles: The ability to retain NFTs over the long term. If you can take early losses in hopes of a big payday, you have diamond hands.
Paper hands: The opposite of diamond hands: someone who bails and sells early.
PFP: Profile Image, used to refer to a collection of NFT-related images designed to function as Twitter avatars. (See CryptoPunks, Bored Ape.)
DYOR: Do your own research. Because Web3’s philosophy of self-sovereignty means there’s no safety net if you make a mistake, collectors are on their own when it comes to avoiding scams and finding the projects the most promising.
Mint: The act of transforming a digital asset – a JPEG of a penguin wearing a hat, a trance song, etc. – into an NFT.
ADO: Decentralized Autonomous Organization. Basically a club but with no central management. Members typically pool their crypto and make decisions about what to do with their funds, together.
CC0: A type of license that waives copyright and places an NFT’s art in the public domain.
4. What makes an NFT valuable?
Think of an NFT like any collectible: dead animals Jordans, Pokémon cards, taxidermy. Some items are simply rarer, which adds value. To find out more, we enlisted Kevin Rose, a tech entrepreneur, podcast host, and co-founder of Proof Collective, a private community of NFT collectors where passes traded for around 100 ETH each, and Moonbirds , instantly one of the best-selling PFP collections of 2022. – CC
QG: First, why did you get into NFT?
Kevin Rose: It was 2017, and it was a project called CryptoPunks. My friend said, “Here are these cute 8-bit characters you can collect on the blockchain. We can exchange them. I bought 10 of these. I think I paid £3 or £5 each and then forgot about it.
After a while there started to be more movement, so I put my head back up. The NFT standard had been [widely established]. Market places could exist. And there were all these native digital artists who only produced work on the blockchain. I said, OK…so there’s proven scarcity, and it’s all on-chain seamlessly. There is durability, so its quality will not degrade over time. I can transfer it easily. And there is a 24/7 liquidity market [ie. converting crypto to real cash]. There’s so much emphasis on crazy NFT prices now, and it’s not sustainable. But I know NFTs are 100% here to stay because it’s just better technology.
What makes a specific NFT valuable?
I don’t think it’s fair to put all NFTs in the same slice. If I buy a one-time XCOPY for £500,000, it’s because I know XCOPY is the Banksy of the NFT generation. He’s like any great artist, but I can’t collect his work any other way, because he has a very unique animated style that can’t be reproduced in non-digital form.