Non-fungible tokens are a new kind of crypto asset which behaves the same as each other, but like collectibles and unique things in real life, they’re different. They can’t be replicated because they’re probably unique. And that makes them harder to trade and value even though they’re easier to use and more secure in various ways. But people are making good use of them so far. This page is a place to watch, get good information, find resources and connect with others who have experience with NFTs or are thinking about using them for games or other purposes.
NFT creators can set the rules of ownership
NFTs are digital assets whose ownership is recorded on a blockchain. And like any asset, NFTs can be sold for a profit or loss. But unlike most other assets, the creators of NFTs get to set the rules of their ownership. In the case of collection, buyers can only resell their work if they sell it as part of a larger collection of artworks. Otherwise, they will not transfer the tokens to another address. But these conditions are arbitrary. Creators could also specify that their works may only be resold on certain marketplaces or at certain prices or that buyers must resell them to transfer them. And this decision-making power could complement traditional copyright law as they see it today. The creator of an NFT can set rules for the future ownership of their creation.
The creator can enforce that a percentage of any future sale will be paid to them or other beneficiaries. They can even require that the NFT be destroyed or donated to charity if resold at a higher price than they think is reasonable. Selling NFTs is also not just limited to art; they could be used to represent ownership of digital land, buildings, and other assets within virtual worlds. Some people have argued that the idea of digital scarcity is impossible because it’s so easy to copy digital files. But NFTs don’t assume that there’s only one version of a digital asset. Instead, they assume that there will be many copies, but all of those copies are represented by different NFTs.
When to sell your NFTs
As with any other investment, you should Selling NFTs when you no longer believe in the underlying technology. If you’re not a believer, it’s never too early to sell. It can only be too late. You’ll have plenty of chances to sell because the NFT market is volatile. Once a week, some new twist on NFTs will make the news, and prices will jump or plummet. Don’t try to time these moves. Just sell when you want to. One is to recommend borrowing instead of selling unless you have reason to think the price of your NFTs will fall a lot shorter and stay down for a while. The opportunity cost of selling is too high: if you give up your stake, you give up all upside as well.