Non-fungible tokens can seem like they’re all the rage . Since grabbing hold of the internet’s attention in the last few years, investors and generally curious people alike have been trying to figure out what exactly they are, and how they can make bank with them . Even celebrities are getting in on the trend.
NFTs are one-of-a-kind digital assets like videos, photos, or illustrations, that use blockchain technology. The latter is a public, digital database that tracks the whole history of an asset. In the case of NFTs, the blockchain lets anyone see exactly where they came from ( a given artist, say ), ensures their uniqueness, and exposes their purchase and ownership history.
The internet is filled with stories of artists who’ve sold their NFTs for thousands , tens of thousands, or even millions of dollars . And the market continues to grow: NFT trading volume spiked 704% in the third quarter of 2021, according to a report by analytics platform DappRadar.
In addition to making money off the initial sales, some people can also pull in passive income from NFTs. Here’s how. Artists ‘can set royalties’ on NFTs
For creators who create or “mint” their own NFTs, there is a built-in opportunity to make passive income after the initial sale. “You can set royalties,” says Franck Bossi, an NFT agent behind NFT WatchDog, “usually 2.5%, some big projects 10% to 12%.”
Every time someone resells your piece on the secondary market, you get this royalty .
NFTs are bought and sold using cryptocurrency, often ethereum. Rapper Latasha , who started selling NFTs of her videos in 2021, is now seeing her work get posted on the secondary market. Her video “MAKDA VERSE” originally sold for 2.6862 ETH, worth $8,386 as of the writing of this article . It is now […]
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