We know that NFTs are a relatively new concept to the world and if you have just started to invest your money in NFTs then there are a lot many things that you need to learn. In our previous post we told you about the Important NFT terms and today we are here with the post on “How many types of NFTs are there?”.
Well, before starting with the types of NFTs let us have a quick recap about what NFTs are? NFT stands for Non-Fungible tokens. These are the tokens that carry the ownership of the digital asset. There might be several copies of the asset out there but the original one is still registered to your name through these NFTs.
Let me explain it to you with the help of an example. There are several copies of Monalisa that are printed and people display them in their houses. But, the original one is still present in the Louvre Museum. In a similar manner, NFTs give you the certificate that says the original asset is listed under your name.
Well, that was a very vague layman’s definition of NFT. It was written to give you a clear picture of what NFT is and what is its future. Now, let us move to the different types of NFTs.
9 Different Types Of NFTs
The NFTs can broadly be classified into 9 different types. We have mentioned all of these below with examples and explanations that will help you in a better understanding of the topic. So, let’s not wait much and start with the first type of NFT.
1. Art NFT
The most famous and among the earliest Types of NFTs is the Art NFT or what we call the Artwork. It was started when the Artists decided to sell their physical paintings by associating them with the tokens, known as the Non-Fungible Tokens. These tokens carry the ownership of the Artwork.
Later the physical Arts were converted to the digital arts and characters and were set on the auctions and sales. A very prominent example of these characters is the Cryptopunks, which are the unique characters generated via an algorithm.
Well, the Artwork NFTs not only contains the painting, but also includes short videos, video art, and gifs. You will be surprised to know that a 10-second looping short video known as the Crossroad was sold for $6.6 Million and became one of the most expensive NFT ever sold. The short video depicted naked Donald Trump lying on the ground.
2. Music NFT
Well, moving to the next NFT in the list of the “Types of NFTs” we have the music NFTS. Just like the video NFTs, the music NFTs are also in great demand. However, musicians and rappers are preferring to make the NFT of their work and then sell it to the buyers.
Do you know why? The reason is clear if a musician makes a song and then publishes it on any of the streaming sites. He needs to pay for the record label and the streaming site. Hence, he only gets a fraction of the money and if the musicians will create the NFT of their music and then sell it. Almost all of the money earned by selling the NFT will be his. Obviously, he will be in profit. So, Musicians are stepping into the NFT business eagerly.
3. Video Game Items NFTs
These Types of NFTs have become most common in recent times. Unlike the ones mentioned above the developers do not sell the game as an NFT. They offer in-game items that can be sold as NFTs.
One such example of a video game is “Axie Infinity”. The game became the main source of the Philippines people during the 2020 Pandemic situation. People lost their jobs in the country due to Covid. So, they started playing Axle Infinity. It is a Play To Earn Metaverse game that carries the plot of raring, taming, and breeding the creatures known as Axies. These Axies are the NFTs, you can sell and buy these in the games NFT Marketplace.
Well, there are games like Sandbox that offer free tools to the users known as “VoxEdit”. The users can easily download this tool from the Sandbox official site and create digital assets (NFT). The user can later sell these NFTs in the Sandbox Marketplace and earn money on the Sandbox platform. Well, the Sandbox Marketplace is also among the best NFT Marketplaces.
4. Trading Card Or Collectible Items NFT
The craze of collecting Trade cards is world-known. People are crazy about collecting these unique and rare cards that carry pictures and descriptions of the specific special event, person, or venue.
Now, these physical trading cards are shifting to the digital world and the publishers have now started making the NFTs of the trading cards. Well, not only the trading cards but other collectible items can also be sold as NFTs. It totally depends upon the company how many collectibles they launch for the NFT because the rarity of the NFT decides the price of the NFT. The more rare and unique an NFT is, the more price you will get.
5. Big Sports Moments
The Types of NFTs mentioned in the list above can also be possessed physically. Here is the NFT that you cannot have physical and only obtain in the digital form. These are the Sports history moment short videos. The moments that have a great impact on the public and great fan moments.
These can include a dunk from some of the greatest basketball players, a goal that changed the whole football match, or one of the moments that is very close to my heart MS Dhoni hitting the winning six against Sri Lanka in the 2001 World Cup Final.
6. Meme NFT
Ahhh!! At last something for people who entertain us over the internet. The next NFT in the list of “Types of NFTs’ ‘ we have is the Meme NFT. yeah, you read that right, if you are a meme creator and you think the Meme character that you created is famous. You can make the NFT of the Meme and sell it.
Don’t believe us? Well, let us tell you then that the Doge meme was sold for $4 Million and most people called it the Weirdest NFT ever sold. But, it is what it is.
7. Domain Names NFTs
Yeah, the next name in the list of the different types of NFTs will surely shock you. The NFT is the Domain Name NFTs. Creating these NFTs is relatively simple as all you have to do is create a domain name and get it registered on the NFT Marketplace.
Well, you must now be thinking that domain names are unique then why do we need to create an NFT. If you have a similar doubt then let us clear to you the process. You buy the Domain name and hire a third-party company that will take care of it. But, if you have bought the Domain name for the NFT Marketplace then the middle man is cut off and it will save you a lot of money as well.
8. Virtual Fashion
The Fashion industry has also been affected by the NFT trend. As we know that the internet is evolving rapidly and soon we are going to enter the Metaverse era. Well, you might consider buying a virtual dress but, you can make your Avatar in the Metaverse wear the dress that you have bought.
If you think we are lying then let us tell you that H&M has opened the Virtual Fashion store in the Metaverse.
9. Miscellaneous NFTs
While the other Types of NFTs mentioned above were easier to describe in the categories. As we know that NFT is a wider concept and anything that is unique and one of a kind can be created in NFTs so we have made another category known as the Miscellaneous NFTs that will cover the NFTs that cannot be categorized.
For example, Jack Dorsey sold his first tweet as the NFT or Wikipedia making the NFT of its first two edits.
We hope that our guide on different types of NFTs has given you a clear picture of the different NFT categories. We have made nine different NFT categories in which the last one is miscellaneous. If you think that we have missed out on any type that could have been on the list then do tell us in the comments section. We will be happy to listen to it from you.
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