Different Classes Of NFTs

With the recent Metaverse and NFT hype happening I kept reading more and more about different types of NFTs. That is the reason why I wanted to summarize these different types in this article. I will try to explain what every type is and what makes them so special as well as talk about their use cases. With this being said, it could be that my differentiation is different to others, so it might happen that some NFTs have multiple types.

Art NFTs

First up are Art NFTs. In a lot of cases these types of NFTs are considered the origin of NFTs. Throughout history art was always considered something worth having and people always were willing to pay extreme high prices for artwork. The beauty of art was that it was one of its kind and that only originals are worth that much money. With that being said, transitioning to the digital world made art a little bit forgotten as anybody would have been able to copy a digital artwork for no money. This all changed with the technology of non-fungible tokens as they clearly indicate the ownership of these digital artworks and hence can tell whether something is original again and what’s not. The prime example of art NFTs are in my opinion the “Bored Ape Yacht Club”. Owning one of these is not only something special but also gives you permission to be in one of the most exclusive clubs in the world and is that not exciting?

Collectible NFTs

Next up are very similar types of NFTs but in my opinion are a little bit different to the previous one. I am talking about Collectible NFTs. How the name suggests, these NFTs are part of one big collection where it is possible to collect the rest of the missing pieces. With the BAYC it is fairly impossible to collect the whole collection in my opinion. With collectible NFTs I am thinking of the Veve App. Here, you are able to purchase several NFTs that are related to comic books or other big brands like Marvel, DC or Disney. Who would not like to have the first issued digital comic book of Spider-Man or just a first-released digital action figure of Batman? What is so cool about these kind of NFTs is that the collection is a big aspect of it. It is clearly more valuable to have a whole line of Marvel heroes than just one of them.

Gaming NFTs

Again very similar to the collection NFTs are Gaming NFTs. The main difference here is that you can use the Gaming NFTs to play a game and preferably earn some in-game crypto currency. I am also including Play 2 Earn Games in this one. They are very similar to collectibles because most of the time these NFTs are a part of a big collection. Best example are the Splinterlands cards. All cards are an NFT by themselves and are part of a big collection of cards. But the main difference is that you can use these NFTs to play the said game. Alone the function of using them gives them a different class of NFTs and hence they got an own section. In my opinion this is one of the most interesting sections so far as the gaming sector was and will always be something very attractive to people.

Music NFTs

Moving away from gaming and right into the next favorite thing: Music. Since the capture of music was invented the industry developed itself quickly to one of the biggest entertainment industries out there. From discs over MP3-Players to Streaming platforms like Spotify, the next step in line are music NFTs. In current times it is very hard for small artists to benefit from their music as the only the biggest artists are getting the most money. This can certainly be changed with Music NFTs as these are enabling a more direct artist to fan interaction. This interaction allows artists to benefit economically from their tokenized music and not be dependent on streaming services anymore.

Fashion NFTs

Moving further into the obscure direction, there are Fashion NFTs. With brands like Adidas or Nike entering the metaverse, their products do as well. It is possible to purchase Fashion NFTs like Nike shoes or Adidas hoodies to put on your virtual character. While this is nothing special in the gaming industry where additional perks to modify your character could have been bought for years, these NFTs enable you to have full control of these purchased items as well as offering different kind of benefits to them. With more and more brands entering the metaverse I do think that this will be a fast growing niche and highly profitable for all of these big brands.

Metaverse Land NFTs

Last but not least, we have the most hyped NFT out there at the moment. I am talking about the Metaverse land madness that has been going on for quite a while. This NFT enables the owner to have a piece of digital land that he can use as he wish. You can either build a house, a casino or a gaming mall on this piece of land so that people can pay you to be able to use this land. Other ways of benefiting from it is to rent it out or use it as advertisement platform in the metaverse. Like in the real world, land plots that are strategically useful are worth more. And while I think this is a very interesting idea, I don’t think that every piece of land is worth the price that is currently asked for. Nevertheless, it is a very important part of the metaverse and will for sure have more use cases in the future.

Conclusion

While it excites me to witness a development like this, many experts think that most of these NFTs will be irrelevant. The general opinion goes towards that NFTs by themselves will be worthless but the technology behind them will gain an immense importance. I don’t think that every NFT project will succeed but that the people using them will in the end decide which projects are worth investing in and which are not. What do you guys think? Will all NFTs be worthless at some point?

Published by ga38jem on LeoFinance On 6th February 2022

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