What Are Non Fungible Tokens (NFT's) 2022? Predictions for 2022
Updated: Jan 17, 2022
In preparing for my talk on NFT's in Playa Del Carmen, Mexico for the Nomadbase Event I've taken an even deeper look into NFT's in 2021 and where I see them going into 2022. A special link for this event below to our Digital Art and Non fungible token (NFT) Online course us below. 100 free redemptions for the next 30 days. Sorry if you miss the offer. Be sure to leave your contact details for other future offers.
What are NFT's? How many times have you heard that in the past year? Fungible basically means easily replaceable so Non-Fungible means unique or one of a kind.
I first heard about NFT's around February/March 2021 from Mark Cuban and Gary Vaynerchuk. I've been following these guys in the tech and social media space before cryptocurrency so they are guys that I trust. Here is Gary V's Definition.
Unique digital assets, and they exist in a variety of industries from digital art and virtual real estate to collectibles, gaming and more. Basically, any type of media can be minted or tokenized and turned into an NFT: art, trading cards, memes, gifs, video clips, audio clips, tweets, this article — anything. - Gary V
As someone who has created NFT's I agree with Gary V's definition. It's not just a jpeg you can mint on the blockchain, but things like blockchain domains like 4hourwork.nft, virtual metaverse land, and even drone footage. Once you've tokenized an NFT it shows up in your hot wallet where you can then resell it or trade it with someone else. You're only limited by your creativity. If you are listing a drone clip or a jpeg the NFT can represent access to something for the token holder. For example it could be a jpeg of a ticket to an actual sports event. After the event the NFT holders could resell the NFT as a souvenir, be eligible to receive crypto tokens via airdrops, or even bring this NFT into a video game or metaverse. Some of this technology is not quite there as of January 2022, but it is getting closer. Opensea.io is the largest NFT platform and you can see the different categories of NFT's that are available today.
I Minted the 4hourworkweek.nft Domain Name as an NFT
I'll share an example of an NFT that I've minted. You can purchase blockchain domains on a site like unstoppable. These are next generation domain names with .crypto, .bitcoin. and .nft domains to name a few. You can use these names for your crypto wallet address, to build web3 sites, and yes resell them as NFT's as I have on Opensea. I've purchased the blockchain domain 4hourworkweek.nft domain name and I chose to mint and resell it on the Opensea platform as an NFT.
Predictions for NFT's in 2022?
To make some predictions for NFT's lets look at some facts from around the web
NFT sales in 2021 reached 25 Billion in 2021 compared to 94.9 million in 2020
Coinbase will launch their NFT platform and had a waiting list of 1.5 million as of Oct 2021
Crypto.com host which hosts NFT collectibles and has made huge sports sponsorships with the UFC, 20 year Deal Former Staples Center, Italian Football League, and the 2022 Superbowl
Virtual Metaverse Real Estate is booming with 100 million worth of virtual land
NFT sales volume have already surged past the $4 Billion mark in the last month.
Cardano ADA, the #5 cryptocurrency by marketcap has a decentralized NFT market place that will leverage smart contracts
It's hard to predict whether the NFT Digital Art craze will continue at the pace it did in 2021. There is always the risk of a speculative bubble so participate with caution.. As we've discussed NFT's are more than just jpeg images, and with Facebook's parent name change to Meta we saw soon saw over $100 million NFT sales in the metaverse and virtual land in a week.
NFT's are closely woven into the the popular metaverses like sandbox and decentraland where you can not only buy virtual land as NFT's, but also interact and sell clothing and items as NFT's. Increased investment in the Metaverse from the likes of Facebook and other corporations will only increase sales activity and interest in NFT's.
Cryptocurrency exchanges like Crypto.com are bringing cryptocurrency to the mainstream sportsworld through their sponsorships. They have tight integration with the NFT world through collectibles. Snoop Dog was one of the first hip hop artist to his collection on famous music artists like the Weekend followed suit with their NFT's. I expect to see more NFT collectibles from the sports and music world making headlines in 2022.
Video games are a natural fit for NFT's where you can already buy items and collectibles. The huge potential is to be able to buy a unique NFT to be used in a game, but also take that NFT to be able to resell it or bring it to other metaverses or platforms. Play to Earn and games like Axie Infinity (Similar to Pokemon Go) use NFT's as digital assets where some people in the Philippines are already playing the game to earn a living.