What is NFT Gold Rush?
The cryptocurrency market is very dynamic. Bitcoin is the leading invention of the blockchain, but as banks and other financial institutions accumulate BTC, retail investors are actively looking for the next big thing.
It started with altcoins, then ICOs, and in 2020 it was Defi. All these were altcoins. NFT (Non-Fungible Token) was the most popular invention of the blockchain in 2021. Unlike the other blockchain inventions, NFTs are not simply rebranded altcoins, but they are unique, meaning they are here to stay.
One of the reasons behind the NFT gold rush is the fact that it is easy for anyone to understand what NFTs are all about even without taking an NFT crash course. Imagine artworks such as paintings or collectibles such as baseball cards stored as tokens on the blockchain. That is what NFTs are, that is, digital collectibles stored on a decentralized ledger.
Cryptocurrency tokens such as Bitcoin, Ethereum, and thousands of altcoins invented on the Ethereum blockchain network are fungible. This means that 1 ABC token in your crypto wallet is equal to 1 ABC token in another person’s crypto wallet. They are similar to traditional currencies such as euros and dollars.
By being “non-fungible,” each NFT is unique and it has a different individual value. Naturally, NFTs are similar to traditional baseball trading cards. Just like these cards, common NFTs have less value but rare NFTs can be worth thousands of dollars.
This article is your 101 guide to striking it rich in the NFT gold rush.
What the NFT Gold Rush means for Fashion
The NFT gold rush has revolutionized many sectors. Let’s discuss what the NFT gold rush means for fashion.
The NFT gold rush caught the attention of the fashion industry in early 2021 after a shoe collaboration between digital artist Fewocious and digital design studio RTFKT netted about $3.1 million. Over 600 pairs were sold out within seven minutes. Remember that the shoes were sold as NFTs. As the NFT gold rush continues, the demand for unique digital assets is surging.
The NFT gold rush also presents many opportunities for the fashion industry. Today, the fashion industry is not about gaming only. This can create a new marketplace for on-trend avatars and digital avatars. The NFT gold rush has made people realize the importance of digital assets.
The fashion industry is yet to tap fully into the unexpected NFT gold rush, and doing so will open it to more collaborations. People are not sharing fashion for fear of it being stolen.
NFT proponents say that the NFT gold rush marks a paradigm shift. It is believed that it will change creative structures, digital ownership, the creative economy, and the way people view money.
Data is an important element in the fashion industry. Businesses should collect data about their customers and analyze it. This will help them to fine-tune their strategies for more profitability. By tapping into the NFT gold rush, the fashion industry will improve its data collection abilities.
Again, on what the NFT gold rush means for the fashion industry, brands are expected to establish better collaborations with other brands. There are smaller companies in the fashion industry with innovative ideas that bigger brands can borrow. Brands will be able to create a community of like-minded individuals with an interest in minting NFTs or purchasing NFTs from others that represent their services and products using the blockchain.
Thus, if you have an interest in fashion, the NFT gold rush will bring you designs that you can wear to earn in the future.
The Future of NFTs
One of the memorable events of the NFT gold rush was when Jack Dorsey, the Twitter founder, sold an NFT that he had made from his tweet for $2.9 million. This made many people realize that it’s possible to make money by jumping into the NFT gold rush. Celebrities like Lindsay Lohan, Lil Pump, and Paris Hilton also started to sell their own NFTs. Elon Musk, the Tesla CEO, also tweeted about selling his NFT, but he rejected all the offers he received.
A significant number of licensed companies have jumped into the unexpected NFT gold rush and launched their own NFTs. Examples of such companies are Sorare and NBA Top Shot. Sorare allows people to trade football cards while NBA Top Shot allows people to trade virtual baseball.
The complexity of NFTs is increasing, creating new use cases for the technology, which in turn is amplifying the NFT gold rush. NFTs are created using unique technological fundamentals. Thus, in the future, owning an NFT may be common just like owning a website.
However, Gary Vaynerchuck, an influencer, and a re-known crypto supporter believe that 98% of NFTs will fail. According to him, some gold rush Gary NFT projects will last but others will collapse soon.