The hidden side of NFT
Since the announcement of the plans to launch our very own non-fungible tokens, many of you have been asking what it will consist of and how it will be used. In this article we are trying to answer all questions and dive deeper into the NFT in general.
If there was an Olympic medal for innovation, the crypto industry would most certainly take home the gold. Since the very beginning, digital currencies have attracted probably the most curious minds out there. No surprise, the number of creative ideas related to the alternative use of blockchain keeps growing exponentially.
The industry continues to gain momentum
So-called non-fungible tokens, also known as NFTs, were the latest invention to come out of the cryptocurrency boom. In a relatively short period, the newly born niche has gathered so much attention that even countries decided to examine its potential. To be more precise, recently it became known that the United Arab Emirates, through the Emirates Post Group (EPG), will be launching the region’s first Non-Fungible Token-backed postage stamps.
In this context, it shouldn’t be a surprise that the market cap of the NFT universe has already surpassed $7 billion. The good news for all the crypto folks out there is that because NFTs are non-fungible, they are not securities and are not subject to securities regulations in many countries. Probably if that wasn’t the case, companies like Adidas wouldn’t openly announce a collaboration with projects like Bored Ape Yacht Club (BAYC), GMoney, and PunksComic within the meta-universe.
What’s under the hood?
This is all very interesting but what the heck are NFTs and why did even institutional investors decide to form part of the mania? — You might say. Answering the first question, according to Investopedia, “Non-fungible tokens are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Unlike traditional cryptocurrencies, they cannot be traded or exchanged at equivalency.” Simply said, NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
A little bit of history
Not many people know but NFTs evolved from the ERC-721. According to ethtub, ERC-721 was written to standardize non-fungible tokens. By standardizing NFTs, the developer community ushered in a new ecosystem of digital content, games, and applications that use NFTs. Thanks to ERC-721, projects like Decentraland, CryptoBeasties, Etheremon, and CryptoKitties were born. It should be noted that NFTs shouldn’t be necessarily built on Ethereum — developers can use any blockchain they prefer.
What do NFTs stand for?
Long story short, basically anything digital can be an NFT — drawings, screenshots, music, domain names, an email from aliens, etc. Still, currently, the most common form of NFT out there is art. Probably you have seen a couple of monkeys on Twitter. Guess what? Now they are worth millions. To be more precise, a collage of images by digital artist Beeple has been sold for a whopping $69.3 million. Jack Dorsey’s first tweet sold for $2.9 million, a video clip of a LeBron James slam dunk sold for over $200,000, and a decade-old “Nyan Cat” GIF went for $600,000. And the list goes on and on…
The second NFT use-case involves music. As it couldn’t be any other way, the new technology attracted the attention of dozens of singers and musicians. It is believed thanks to NFTs, musicians will be able to keep roughly 100% of the money, which is why so many musicians are turning toward this method.
What about memes — Can they be “NFTed”? You bet so! Already today, there is a possibility to buy and trade memes on the NFT market. Some of the more popular memes like Nyan Cat, Bad Luck Brian, Disaster Girl, and others are on the list, racking in between $30,000 and $770,000.
Last but not least, there are real-world use cases too. For example, Nike owns a patent on NFTs to authenticate sneakers as unique items. Eventually, this technology will be used to guarantee ownership of physical property and cut out expensive intermediaries.
Nimbus expands horizons
As it couldn’t be any other way our team also saw an opportunity in the newly born market. Nevertheless, we want to offer the crypto community an alternative use-case for NFTs — tokens that automatically distribute assets into a number of different dApps. While technically speaking, it’ll still be an NFT.
The first Nimbus NFT will work with LP pool, LP staking, and Lend dApps. This product will be interesting for users with minimal experience in the crypto market, especially those who understand what risk diversification is, but don’t yet have enough experience.
How does it work?
With just 1 click the user becomes a liquidity provider, puts coins in LP Staking and becomes a lender using the algorithm embedded in the smart contract. In conclusion, our goal is to offer a simple solution to those who are tired of wasting time on selecting the right strategy for each and every DeFi product. On top of that, you will be able to save on gas fees: once and for all.