Checking the NFT value is really important before purchasing any non-fungible token artwork. This will allow you to know if the digital token is still worth buying or not.
DENVER, CO - FEBRUARY 18: NFT stickers sit at a booth at ETHDenver on February 18, 2022 in Denver, Colorado. ETHDenver is the largest and longest running Ethereum Blockchain event in the world with more than 15,000 cryptocurrency devotees attending the weeklong meetup.
One of the major issues with new NFT consumers is that they just purchase a digital token without checking if it is still valuable.
Now, if you ever wanted to purchase an NFT, here are the factors you need to consider first.
Checking NFT Value: Rarity and More!
CoinTelegraph provided some of the most important factors consumers need to consider before purchasing an NFT. These are social proof, rarity, ownership, and utility.
This picture taken on June 25, 2021 shows a visitor looking at artist Yasumasa Yonehara's "Sup" with a mobile phone app, during "CrypTOKYO", a physical blockchain art exhibition in Tokyo. - Some 150 non-fungible tokens (NFT) from several dozen artists were on display at the "CrypTokyo" exhibition in the Japanese capital's trendy Harajuku district.
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Utility
The utility is one of the main key parameters of an NFT. This allows digital artists to tokenize precious metal, securities, as well as real estate, allowing them to represent virtual land or game assets.
Rarity
Rarity is another essential factor that you need to consider. Before buying an NFT, you need to check if it is created by a well-known digital artist or other creative professionals.
For example, a token minted by a top-grade celebrity is considered a rare NFT.
Ownership
Aside from utility and rarity, you also need to check the ownership of an NFT. A digital token artwork usually gains value if it has already passed various well-known individuals.
But, you also need to be careful since there's a chance that the value of an NFT decreases, making the individual who last purchased it lose the game.
Social Proof
Social proof is also quite important. Before purchasing an NFT, you need to check its profile on various social media platforms, such as Twitter and Facebook. This will allow you to know if the majority still accepts that non-fungible token artwork.
Most Expensive NFTs
According to Yahoo Finance's latest report, CryptoPunk #7523 is still the most expensive NFT character in the popular collection. As of the moment, CryptoPunk's value is around $11 million.
Aside from CryptoPunk, here are the NFT collections that followed it when it comes to value:
- CryptoPunk #7804 ($7.6 million)
- Crossroads ($6.6 million)
- A Coin for the Ferryman ($6 million)
In other news, the first-ever Crypto Polo Watch has been launched in South Florida. Meanwhile, LimeWire returned as an NFT market, ditching its music file-sharing roots.
For more news updates about NFTs and other related crypto topics, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
