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INVEST May 2022

Which are the best NFTs to invest in?

We already know that an NFT is a virtual asset you can register in the BlockChain network. It has a unique and unrepeatable digital contract code. That one identifies it and verifies our authorship. NFTs offer a certificate of authenticity which makes them an exciting cryptocurrency asset.

You can see NFTs as an illustration, animation, audio, and short videos. So, let's walk through the different types of NFTs and mark some observations:

Digital Arts

It is the best-known segment that boomed during the year 2020. It came to stay because of health problems and restrictions on the physical movement of people. Many art galleries worldwide were forced to close their doors in that context. Because of this, many renowned artists and others who emerged "out of nowhere" have ventured into digital art.

Thus, the content appears in digital illustration format, minting their works in the BlockChain. Obtaining this way, a unique and unrepeatable NFT. In this way, the pieces become digital assets that you can trade on the Internet, originating an attractive market for artists, collectors, and investors who wish to acquire these assets to keep them and, after a while, re-sell them at a higher value.

All these creation and commercial exchange operations are done through the so-called Marketplaces. Among these are Christie's, Rarible, SuperRare or the most popular of them all today, OpenSea.

Visit our artists section to learn more about digital art and its protagonists. You will find complete descriptions of the NFT's coming to the market.

Collectibles

NFT collections are a segment that has grown a lot. Nowadays, we can consider it saturated if we look at the avatar collections available in the market.

Avatars. Avatar collections are the most popular. Following the success of Cryptopunks, hundreds of NFT collections based on the same idea have emerged. As a result, the market has come full house with this type of asset. Only a few like, for example, Bored Ape Yatch Club have managed to have similar success. The market for these avatars is quite strange since they are quoted at exorbitant prices, such as the price of a property, so we do not dare to say that they are recommended as an investment since the issue of liquidity also plays a role.

Although these avatars seem to be bought and sold very frequently (according to the BlockChain records), these are at the top of the trends. They are anonymous transactions, so we do not know the legitimacy of these operations. We have read opinions suggesting that these types of assets are being bought and sold by the same owner taking advantage of the anonymity of these operations. But indeed, this does not happen with all collections. There are probably many with legitimate moves that have catapulted them to success.

Digital cards. The best-known case is the "Pokemon stickers". These are collectible cards that refer to a theme, brand, or soccer player (for example). This idea of investing in NFT collectible cards could be beneficial if it is a globally or regionally known trademark. This will increase the interest in this type of market to move.

Digital Toys. We can mention the case of "Rude Boy," a trademark that decided to digitize all its physical toys to NFTs in short animation formats. Contrary to what happens with avatars, it is a segment with scarce presence in the BlockChain. Although "Rude Boy's" is one of the pioneers and registers many transactions, we doubt it is a good investment idea since it is a concept that did not have the same success as the other cases.

Digital Food. The pioneer in the creation of digital food NFTs is "CryptoSushis." It is a collection of 3D animations of edible sushi dishes with well-featured and original presentations that make it an attractive investment asset.

Many digital food collections have emerged as a result of this initiative. While "CryptoSushis" NFTs would seem to be a good investment alternative (as long as interest in this collection continues to grow for the rest of the collections), digital food is going at a slow pace. Therefore, we believe it is still too early to consider this type of investment.

Memes

These are memes known worldwide or regionally, viralized through social networks. These were digitized to NFT format by opportunists and have been successful. But we believe that it is not a reliable investment segment, as we can find the same meme digitized by different owners and repeated hundreds of times (obviously changing its unique and unrepeatable digital contract code). This takes legitimacy away from this segment unless they are specific popular assets in high demand. That can be checked in the BlockChain records.

Merchandising

In general, it is being used by companies that sell clothing or some other type of product and decide to digitize them in NFT format, for example, in a short digital animation of the product. Although an NFT is a unique and unrepeatable asset, in this case, what is usually done is to generate as many NFTs as products go on sale. They number them from 1 to 1000, labeling them #1, #2, & #1000, each with its unique and unrepeatable digital contract code in the BlockChain. The strategy is that when someone buys these NFTs, the real product is sent by parcel to their home address. This is another way to promote and sell physical products. This type of NFT are not oriented to investors.

Videogames

The best-known case is "Axie Infinity," an online video game composed of many NFT assets registered on the BlockChain. You can trade these assets and play a role within the game allowing participants to earn rewards. In each game, you can use tokens for different purposes and have a business model based on an open economy.

With time and money, each player participates in constructing the virtual world and obtains economic benefits from this. The main asset is an "Axie" that allows the player to interact in this virtual world. You must purchase this "Axie", but due to the high prices of these NFTs, communities have arisen that rent these NFTs so that other players can generate money with them for a certain time and thus, be able to cover the rental cost and obtain a profit while playing. These NFTs are also often lent to those who want to play with them to generate money for a commission of the money generated.

Undoubtedly, this is an exciting option to explore in more depth and consider as an investment. There are also other games such as "My Crypto Heroes," "CyBall," "LightNite," and "StarSharks." The number is vast, and there are more and more.

Metaverse

Undoubtedly the metaverse has "exploded" during the year 2021. It is a virtual world where there are lands, properties, events, galleries, museums, recreation, and everything we can find in the real world but digitized in virtual reality and tokenized in NFT format.

"Decentraland" and "Sandbox" are the most popular metaverses. The boom of 2021 was due to Facebook announcing their name change to "Meta," whose CEO said they would start focusing on this virtual world called metaverse.

That sent the prices of the cryptocurrencies used to trade within these virtual worlds skyrocketing: "MANA" and "SAND," respectively, associated with the metaverses mentioned earlier. You can acquire Virtual land in NFT format to invest in these metaverses. However, they cost the same or more than real physical property in many cases.

This all depends on the location within this virtual world. We, therefore, leave it to the reader's discretion as to whether to invest in such assets. We believe that it is necessary to have a lot of capital, and it may be helpful for large investors who want to bet on the long term. Another way of betting on this virtual world, which is within reach of small and medium investors, is by buying the cryptocurrencies above.

Conclusion

Digital art NFTs sound like the most attractive investment within reach of any investor, from the smallest to the largest. Everything will largely depend on a good analysis of the artist's reputation and future and works in the market.

Digital food NFTs can be another alternative for any investor. Still, we are not sure if it is profitable depending on the type of project and the legitimate movement it has in the BlockChain.

NFTs associated with video games and metaverse may be a good alternative for medium and large investors who want to diversify their portfolios by including these assets for long-term profit. Therefore, avatar collections could be an accessible investment. All this if a collection is located just coming to the market and at prices within reach of any investor.

There, you must do the analysis from the artist to the appearance of its assets. All this should indicate that it has excellent potential for growth, which would multiply its price. We believe that they would not be a good alternative for those avatars that have already reached exorbitant fees.

Like avatars, you can deduce NFTs from investing in digital card NFTs. Finally, we do not see NFTs associated with digital toys, memes, and merchandising as a profitable investment alternative, although this is at the discretion of each investor.

NFT Trends

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