Amidst the popularity of Non Fungible Tokens (NFTs), it is seen that about two-thirds of the people recently surveyed are buying NFTs to resell these digital assets to make a profit, according to a survey conducted by blockchain analytics company DEXterlab.
NFTs are currently the hottest product in the digital asset space, with celebrities launching NFTs for their art and music collections as another revenue stream for their work.
NFTs are crypto tokens, which are non-fungible, meaning that they can neither be transferred like money nor replaced with something else. It is gaining popularity among artists, musicians, video game designers and content creators as this can protect their pieces of art like painting, songs, videos, games, tweets, etc.
NFTs are pieces of tokenized content that are verifiably unique, with the authenticity, rarity, and scarcity, and are secured on blockchain. They are typically built of Ethereum, though other blockchains like TRON and NEO can be used. The NFT transaction is executed on blockchain using smart contracts to store and record their unique information.
When a person buys an NFT of a collectibles and rare items of art and music, he receives a token containing the same only and does not get ownership rights.
People spend hundreds, thousands, or even millions on a simple JPG, GIF, video file or anything else that are easily accessible to everyone on the internet. DEXterlab surveyed more than 1300 people on their interest and reasons of buying NFTs.
The survey showed that about 64.3 percent people bought NFTs primarily to make money. NFTs are seen as an investment that can later bring profits if you can grasp the value of a specific digital asset and make the right purchase decisions.
The second most common reason why people buy NFT is to become a part of some community and flex, with 14.7 percent of people surveyed stating this as the key reason. As people are highly social creatures, they desire to be a part of a community and show off as a social status while holding a particular rare NFT.
Meanwhile, community members who hold particular NFTs often have access to various perks. They are also offered additional NFT collectables free or gain access to exclusive events.
The actual digital art collectors are third in the list, with 12.4 percent of people surveyed wanting to buy the NFT to boost their collection. They also want to support creators, engage with them and like-minded people on Discord groups and Twitter spaces to learn more about the story behind the digital art piece.
According to the DEXterlab survey, 8.6 percent of people buy NFTs to gain access to games and tools. One of the key benefits of NFTs is the value that comes with them, mainly in the form of membership rights that grant you access to creators’ projects and the perks that come with them.
The DEXterlab survey also shows that about 48 percent people are comfortable paying anything from $50 to $500 for an NFT, while 25.5 percent of people said they will pay more than $2,000 for a single NFT.
Meanwhile, 15.2 percent of respondents do not mind spending $500 to $1,000 on an NFT, while 11.4 percent are comfortable paying anything from $1,000 to $2,000.
However, 58.3 percent of the survey participants revealed that their NFTs have not been that profitable so far, but 41.7 percent of then were able to make a profit from the NFTs they bought.
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