- Experts heard by E-Investidor assess that the trend contains a trend that should gain more room, but there are also signs of speculation as these assets tend to appreciate over time – something that has been seen in the past few months proved it
- When Bored Ape launches in April 2021, each token in the series will be worth 0.08 ETH (~$248). Considering only the BAYC #6633 token that Neymar paid 159.99 ETH for, the asset has an appreciation rate of 199,887.5%. Take BAYC #5269 paying 189.69 ETH by Brazilian players as an example, the cumulative value gain in less than one year is 237,012.5%
- According to lawyer Dias Carneiro, before investing in NFTs, it is important to understand exactly the characteristics of what is being acquired and what are the rights granted
The success of NFTs (non-fungible tokens, in Portuguese) is nothing new, but the international popularity of these digital assets is accelerating. For example, in 2021, NFT was named Word of the Year by British dictionary Collings. Despite being used for various purposes, this digital asset has become popular with celebrities in the field of art, especially images.
Brazilian player Neymar Jr. Is one of those who have recently invested heavily in NFTs. In this case, they are two pieces from the Bored Ape Yacht Club (BAYC) collection, one of the most popular and valuable pieces on the market. The operation took place on the OpenSea NFTs marketplace platform and cost 349.68 ETH (Ethereum), which is equivalent to $1.1 million.
BAYC is an exclusive club with other internationally known members, as well as precious monkey figures such as host Jimmy Fallon, singer Justin Bieber and rapper Eminem. According to the series’ description on OpenSea, Bored Ape also doubles as a Yacht Club membership card, “granting members exclusive benefits, starting with access to the collaborative graffiti board The Bathroom.”
Hear from experts electronic investor Assessing this trend contains a trend that deserves more room, but it’s also a bit speculative as these assets tend to appreciate over time – as the past few months have shown.
“The price of these NFTs went up a lot because there were exclusivity issues and there was increasing demand from celebrities to buy it. So, it ended up creating pressure for the price to go up,” explained Alex Buelau, CTO of crypto-asset fintech Parfin.
“They sold for an average of $6,000 in July 2021. Now, the average price is around $300,000. Neymar himself bought two for about $1 million. So as an investment, the results speak for themselves. Yu. It’s an excellent investment for those who buy back from there,” added Buelau.
When Bored Ape launches in April 2021, each token in the series will be worth 0.08 ETH (~$248). Considering only the BAYC #6633 token that Neymar paid 159.99 ETH for, the asset has an appreciation rate of 199,887.5%. In the case of BAYC #5269 where Brazilian players paid 189.69 ETH, the cumulative value gain in less than one year was 237,012.5%.
Marketing is part of democratization
Just as a rare painting acquires historical, cultural, and of course economic value over time, the same is expected to happen to NFTs in an increasingly digital world. In this case, the famous auction and technology becomes the blockchain technology network, which is also used for cryptocurrencies such as Bitcoin and Ethereum.
So, in this first moment, the pioneers of this new world of art thought that, in a way, they were buying the Picasso, Carlo, Monet, Dali, etc. of the future. Regarding the value of the work, the operation is approaching. Last May, Spanish painter Pablo Picasso’s painting “Woman Sitting by the Window” sold for $103.4 million at a Christie’s auction in New York. The most expensive NFT sale to date was a collage by graphic designer Mike Winkelmann, better known as Beeple, which sold for over $69 million in March 2021.
However, as the market is still in its infancy and a significant portion of the population is unaware, the public of this well-known stakeholder will be the result of the marketing strategy, the assessment report heard.
“The most popular collections of NFTs like Crypto Punks or BAYC (Bored Apes Yacht Club) represent a sign of status and belong to a select group as if it were a ticket to an exclusive party”, Investment Director Alexandre Ludolf Comparison Road. From QR Asset Management.
The movement of great celebrities such as football and NBA players, rappers, including the use of images of Tokens in profile pictures on social networks, has made the NFT phenomenon more visible than images, highlights Ludore.
“This global phenomenon has a great marketing strategy, the companies that created the most famous series donate NFTs to celebrities. But it’s very important to understand that the world of NFTs is much bigger than pixelated images, which makes a lot of people Interested in this market,” stressed the director of QR Asset.
Among the opportunities offered by decentralized technologies such as blockchain, whose smart contracts enable NFTs, Ludolf exemplified that artists could access global markets with much lower commissions.
“Traditional art galleries often charge up to 50% commissions for the marketing of lesser-known artists, while NFT-focused marketplaces, such as OpenSea and Rarible, are a way for artists to gain more influence and pay less,” In addition to the image and meme markets, NFTs are already being used as solutions in healthcare, music, streaming and other fields, said Ludolf.
What are the risks and precautions?
Marco Jardim, director of blockchain technology at crypto fintech Investtools, compared NFTs to a certificate that guarantees ownership of a single file, such as an image in JPG format, to an individual.
“You can think of the blockchain as a digital registry where you have certificates, including artwork, to which you have certain rights,” Jardim said.
While images of monkeys can be reproduced and printed on shirts, like famous paintings, such as the image of the Mona Lisa, only the holder of the “certificate” has the right to the archive – as the Louvre has the most iconic paintings . Leonardo da Vinci.
Vanessa Pareja Lerner, partner at Dias Carneiro Advogados, noted that NFTs are multiple intellectual assets whose origin and traceability can be accurately identified as they are stored in blockchain (cryptocurrency) technology. “It’s like having a painting where we can almost absolutely determine the moment of its creation and its entire chain of dissemination until it reaches you,” Lerner said.
According to lawyer Dias Carneiro, before investing in NFTs, it is important to understand exactly the characteristics of the content acquired and the rights granted.
“For example, will the blockchain hosting the NFT make it easy to make the asset liquid? Am I getting an original and unique piece or just a limited series (like a collector’s edition of an album)? way to reproduce the artwork or use the work, or it’s just a collectible, like a painting you buy to show, but you don’t have the intellectual property,” he lists. Lerner.
These precautions help investors avoid headaches, including the tax component, and take advantage of this market’s true earning potential, of course, always keeping the inherent risks in mind, as with any speculative asset.