The cryptocurrency market is constantly evolving and provides new ways to earn money for everyone, no matter how unethical these methods may be. NTF or “non-fungible tokens” is one such way. Although they’ve been around for several years, the NTF boom started recently and continues to blossom.
To understand how people make money on NFTs, you need to understand what non-fungible tokens are. Tokens are not cryptocurrencies, though they can be sold and purchased for crypto on special platforms. A token is a record in the blockchain that confirms the user’s digital balance in some asset and acts as a security bond in the blockchain. Now, there are fungible and non-fungible tokens. Fungible tokens can be exchanged for other fungible tokens, like USD to GBP. Non-fungible tokens, or NFTs, on the other hand, exist as one-of-a-kind entities that cannot be exchanged or replaceable by another token of the same kind. The NFT code contains information about the author of the product, its current owner, the mechanism of automatic accrual of royalties from future resales, etc. It is impossible to forge such a token. Did you get all that? Good.
The first experiments with NFT began in 2017 — with the Pepe memes posted on the Rare Pepe Directory platform. One of the cards — a portrait of Homer Simpson, stylized as Pepe — soon sold for $500, and about a year later, it was auctioned off for 38,000. Next were CryptoPunks and the game CryptoKitties. The first ones were a bunch of unique characters, while the CryptoKitties was (maybe still is?) a game where people farmed and exchanged NFTs. And look at the market now — everyone’s dipping their toes into NFTs: regular people, collectors, artists, big companies — you name it.