NFTs are the next big asset, get involved before your chance gets token

Aidan Carney Skytt

NFTs, which stands for non-fungible tokens, are on the rise and it’s time for the Redwood student body to get involved. The NFT sector was able to amass a market cap of 40 billion dollars in 2021 which encapsulates the sheer scale of the NFT space. Fungibility is the idea that items can be traded and have equal value. For example, if two people both have a five dollar bill and they trade, they still have the same value. However, if two people have a pair of Air Force 1s and they trade, that is not considered a fungible transaction. Even though they are the same shoes, one might be more worn than the other and will have subtle differences, therefore different values to different people. Similarly, NFTs values are decided by the community and the holders. With a clear definition of NFTs out of the way, Redwood students should own NFTs because they are appreciating assets, they have utility which can be helpful/profitable to the holder and they provide utility tokens.

One reason to buy an NFT is that most of them are artwork; people spend millions on fine art all the time. The only difference compared to NFTs is the way the art is presented. Traditional artwork is physical while NFTs are digital. Another reason to own an NFT is their utility. Many NFT projects offer perks for their owners. An example of a project that offers perks is the Bored Ape Yacht Club. This NFT project allows for owners to attend exclusive yacht parties around the world. The only way to get in is by scanning one’s Bored Ape NFT at the door. This utility hasn’t gone unnoticed; many celebrities including Eminem, Snoop Dogg, Mark Cuban and Steph Curry all own Bored Apes. This celebrity recognition has also led to an increase in the floor price for this project. Currently, the cheapest price someone could buy a Bored Ape NFT for is $340,000. This high price point also proves that NFTs have legitimacy. People wouldn’t be spending hundreds of thousands of dollars on NFTs if they were worthless. Yes, $340,000 is out of the price range for most high school students but these hefty prices weren’t always this way. The Bored Ape Yacht Club NFTs initially sold for $190. $190 is a much more manageable price and shows that buying into quality projects earlier has extreme upside.

Finally, people buy NFTs for their native tokens. Native tokens are NFT’s own cryptocurrency. Some NFTs pay their owners crypto in exchange for holding their project. An example of a native token is Cyber Kongz native token, Banana tokens. Cyber Kongz is an NFT project that pays 10 of its Banana tokens to their holders each day, according to Banana tokens are currently valued at nearly $6. These token payouts mean that holders of the NFT can make passive income every day. 

Experts in the crypto field are also incredibly enthusiastic about NFTs. Take Gary Vee, an entrepreneur-turned-NFT-connoisseur and creator, who believes that NFTs are one of the most groundbreaking technologies ever invented. 

In an interview with Kyle Forgeard on the Fullsend podcast, Vee said that, : “[NFTs are] the biggest technology that has ever happened in life, outside of things like fire, and the printing press … This is like printing press 10.0.”

This is a very bold statement and shows just how impactful NFTs are. Additionally, Gary Vee knows to put his money where his mouth is; he made his own NFT project called Vee Friends which made him 90 million dollars in 90 days. This extreme earnings in such a short time legitimizes his argument and enthusiasm for NFTs by showing that he’s not only willing to talk about it, he’s also willing to create his own-and make millions doing it. 

My personal experiences with NFTs have also been great. I have been involved in the NFT space for many years and have purchased numerous NFTs . One project that I purchased was NBA Topshot which is a collection of virtual basketball cards sponsored by the NBA. The normal packs cost $7, and every single time I opened one I pulled cards worth more than 7 dollars. This demonstrates how NFTs can be very profitable and a worthwhile investment.It also shows that Redwood Students don’t need to spend hundreds of thousands of dollars to make money with NFTs. 

Skeptics of NFTs argue that screenshotting NFTs allow for them to own the art without paying for it, but that claim is simply not true. When someone buys an NFT, the crypto wallet address that owns it is put on the blockchain for everyone to see. A blockchain is a decentralized net of computers that work together on a form of ledger. The blockchain collectively validates transactions, allowing for people to buy, sell and trade cryptocurrencies and NFTs. Furthermore, screenshotting an NFT won’t allow a person to resell it afterwards, and it doesn’t give a person access to the utility or native tokens of the NFT. 

To conclude, all Redwood students should look into buying NFTs because they are a valuable asset. NFTs also have lots of utility from the artwork and from the tokens they provide holders. Buying into projects early or flipping cheap projects will yield the best results for High Schoolers because it requires less capital. However, all investments have risks to them.  Make sure to do your own research before buying an NFT.