6 Types of NFTs

NFTs or non-fungible tokens are one of the hottest commodities on the internet right now. They are cryptographic assets that exist on a blockchain with unique identification codes and metadata that can’t be replicated.

The reason for the sudden interest in NFTs is partly down to their potential economic growth and investment capabilities. In March 2021, for example, the digital artist Beeple sold a collection of NFTs for a record-breaking $69 million.

Often referred to as digital passports, NFTs can be a digital representation of assets and connected with the collectibles market, though other types of NFT do exist. So are you new to buying NFTs? Or are you trying to work out which are the best NFTs for investment?

Don’t worry, we’ll take you through the various types of NFTs are and explain exactly how it all works.

Artwork

NFTs of artwork are one of the most popular forms of NFTs. They are programmable art that can exist as limited-edition tokens, helping artists generate income and sell their work on a digital platform. 

Some of the most prolific and high-profile digital artists are FEWoCIOUS, Mad Dog Jones, and SlimeSunday. Between them alone they’ve already sold over 10,000 NFTs. SlimeSunday sold one piece of art titled ‘Gunky’s Uprising’ which was valued at $1,333,333. 

Game Collectibles

Game collectibles have boosted the online game industry, meaning gamers can purchase or sell in-game items and generate a profit from them. The game Axie Infinity adopts this structure where users can swap, breed, or sell fantasy animals in the online marketplace.

Sports Collectibles

Sports fans can also have a slice of the NFT action. They can purchase NFTs such as trading cards, kits, accessories and even have digital ownership of famous sporting moments in a video clip. 

The sports entertainment company WWE recently released sports collectibles of some of their matches. A clip of Mick Foley being thrown off the Hell in the Cell by the Undertaker was sold for over $100,000.  

Memes

Regardless of whether you’re an avid meme user or not, memes are recognized as part of the cultural fabric of the history of the internet. And these historic memes are now able to be purchased as NFTs. 

Classics such as Bad Luck Brian, Charlie Bit My Finger, and Doge have all been sold online, with the Doge meme being sold for a record-breaking $4 million. 

Event Tickets

One less commonly-known method of purchasing NFTs is having them as online tickets for specific events. It allows the user to verify their identity with the ticket and purchase them safely and securely through auctions. The ticket can then be easily added to a wallet on a mobile device and accessed.

Media and Music

Currently undergoing a period of innovation and experimentation, people are starting to release NFTs linked with a piece of music or other media files. The band Kings of Leon was the first band to release their album as an NFT last year, while Linkin Park’s Mike Shinoda released an NFT for $11,000. 

Music NFTs could change the way in which the music industry operates, meaning more compensation for the artists and fewer middlemen taking a slice of the profits. Still, in its infancy, this is a branch of NFTs that has huge potential. 

Whatever NFT you are looking to invest in, the scope is huge for a variety of different interests and tastes. Whether you’re after your favorite band’s new EP or a piece of sporting history, there are collectibles out there for everyone to enjoy and also invest in.

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