Clue: choose the one with the highest perceived-value
> NFT Today
The NFT market generated around $24.7 billion worth of organic trading volume in 2022 across blockchain platforms and marketplaces, DappRadar shared with Decrypt
The total NFT trading volume of the top 6 NFT marketplaces was $1.89 billion in February 2023. This is the fourth consecutive month with the total NFT trading volume on an uptrend, increasing 91.9% month-on-month (MoM) from January 2023
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Despite months of declining sales and falling prices, overall NFT sales volume last year nearly matched the 2021 peak, according to data from DappRadar
> Celebrity NFT’s
Celebrity NFT’s is big business with millions ($$$) of potential profits due to their earnings expectations.
Let us take a step back and understand the concept of an NFT and what problem it solves.
NFT — Non-fungible Token is a technology that solves a critical problem.
As you may know, different technologies solve different kinds of problems. For example what technology does Uber/Lyft use to deliver their service?
GPS — also known as geo-location tagging. Without the GPD tracking technology, Uber/Lyft cannot deliver thier service. Uber solves the problems of:
— Taxi driver coming to your location — you dont have to go to a taxi stand
— Will choose the shortest route to reach your destination.
— Pay online on the app instead of looking for cash to pay the driver.
So what does NFT solve for us?
NFT addresses the concept of rare value items. A Picasso painting is a rare value item. A Monet painting is a rare value item. A painting or an unpublished photo of Michael Jackson is a rare value item. Today rare value items such as historical paintings have prices in the millions because of their perceived value. A rare value items usually has a high perceived value due in comparison to an item that is available in abundance.
A signed unpublished photo of Madonna will have a rare value item because of the international celebrity status linked to it. Hence any NFT linked to a celebrity would have a high perceived value.
Traditionally if someone wants to purchase a Picasso painting they would have to pay millions in an auction hourse somewhere in Paris.
What if I told you that you can own a piece or a fraction of the Picasso painting at the price of $1000. And if the Picasso painting is in a museum in Paris at the Louvre, they would have a poster next to it with your name since you own a piece or a fractional share of that painting. And anyone visiting the Louvre would know that John owns a 10% of the Picasso painting.
NFT technology solves the problem because it allows any person with an average income to purchase a stake in a rare item with high perceived value with a reasonable price. You want to own a share in an unpublished photo of Snoop Dog, sure, just buy the NFT of it. Essentially when John purchases a stake in a Snoop Dog painting for $1000 dollars, he is making a bet that somewhere in the world, another user will have a higher perceived-value of that Snoop Dog painting so he will purchase it for a price higher than $1000 dollars. Hence John has the opportunity to sell the Snoop Dog share of the painting for $1400 in an NFT marketplace. Hopefully someone out there will purchase it.
This is why celebrities have jumped on the opportunity in creating their own NFT’s. The global fame level of the celebrity will determine the perceived-value of the NFT. Imagine if there is an unpublished photo of Michael Jordan when he was playing for the Chicago Bulls. What is that photo was signed by him and never published, the perceived value now is much higher. If Michael Jordan passes away, the perceived value of the NFT will most likely double or triple in price.
Here are a few of the celebrities who created their own NFT’s in 2023:
1. Snoop Dogg
Snoop Dogg released his debut NFT collection, “A Journey with the Dogg”, in late March 2021. After its success, he launched “Young Snoop” with the original NFT tune. He also launched “Snoop Doge Coins,” “Diamond Joint,” and “Deez Nuts.”
2. Paris Hilton
The socialite has released official NFTs with artist Blake Kathryn, which have sold for nearly US $1.1 million. Paris Hilton has also launched Hummingbird in My Metaverse, Legend of Love, Forever Fairytale, and many more.
3. Johnny Depp
The collection of 11,111 NFTs includes Johnny Depp’s portraits of his friends and heroes including Marlon Brando, Hunter S. Thompson, Elizabeth Taylor, Lily-Rose Depp, Tim Burton, Depp’s late dog Mooh, Depp himself, and a fictional character created by his son, called Bunnyman
4. Madonna
The queen of pop leaned into the NFT world with a year-long collaboration with the visionary NFT artist Beeple. Together they launched ‘Mother of Creation’ for charity to help support women and children around the world.
“Mother of Creation” is a series of three digitally created videos in which she is portrayed as a nude woman giving birth to flora, fauna, and technology.
Mike Tyson, Steve Aoki and Anthony Hopkins also created their own NFT collections based on specific works of art that was branded under their names. There are now Arab based celebrities that jumped on the opportunity of creating their own NFT’s.
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> NFT Drops
The best way to maximize your returns in NFT’s is to know when the new NFT’s will be dropped. One of the best ways to find out is with this link: https://nftcalendar.io/
Also monitoring the top NFT marketplaces such as Rarible and Solana will give you an indication on when the top airdrops and the creators behind them.
Based on the NFT trading history, celebrity NFT’s almost always have the highest perceived value. Most people want to flip NFT’s for profits, buying an NFT at the air drop price will allow you to purchase the NFT from the creator at the lowest price point. After that you can list your NFT for sale on the market for a higher price. Of course there is also the advantage of the NFT crypto currency price goes up. The majority of NFT’s are being traded with Ether and Solana now. Solana’s price jumped over 100% in the last two months, so if you purchased an NFT two months ago with $300 worth of Solana, and when you sold the NFT today you would have doubled your returns.
Here are the top NFT marketplaces that use Solana (SOL), Polygon (Matic) and Ether (Ethereum):
Have fun with it, and please trade cautiously.
Disclaimer: This article does not provide investment advice, please trade at your own risk. Always do your own research. Crypto currency and NFT trading is highly volatile.
