The year 2020 was a corona-induced year filled with uncertainties but this was also the year when decentralised financial transactions exploded in the industry. People started making massive investments in Non-Fungible Tokens (NFTs). Most expensive NFTs are cryptographic tokens that are unique and have individual characteristics. NFTs are not only providing vast business opportunities but paving digital ways for people to earn money.
Seeing the potential and prominence of NFT, its sales skyrocketed and many elite celebrities started earning seven figures out of NFTs. Pak’s The Merge was the most expensive NFT to be sold to date with a tag price of $91.8 million. The key reason behind the surging prices of NFTs is the demand and supply forces that build great interest and the prices go up accordingly. Project owners who foresee this trend, show interest and enthusiasm and earn a huge return on investments and earn bulk sums from investors.
People Pouring Confidence and Investments in NFTs Despite Digital Uncertainties
NFTs have changed the paradigm of every working sector and society. The financial transformation over the years has boosted the confidence of multiple industries including but not limited to finance, fashion, tech, sports and of course arts.
People are showing interest in NFTs because each NFT contains a unique identity that cannot be easily replaced. This individuality leverages people to sell their digital data at premium prices. Here are other key reasons why people buy the most expensive NFTs:
NFT empowers designers, artists, and publishers with a strong sense of art creation to sell their art independently and have better control over their work by retaining IP. Many artists are also earning royalties through secondary sales of their work at the NFT marketplace. Thus, NFT not only acts as a gatekeeper for industries but provides financial stability by empowering them.
Many of the NFT owners only purchase digital assets to increase their investment. NFTs have proved to be a key source of investment as they provide traceable and exchangeable sources of investments.
Some of the NFTs that take 10 cents to make, can earn $10 million just because of the individual and unique characteristics they hold. The digital but unique opportunity provided by NFT enables holders to get their collectables recognized on a digital platform without copyright issues.
NFT is a new rising digital trend and its market is vulnerable to threats and risks. People are also concerned about legitimacy and copyright issues. That is why it is always advised to buy and sell through verified projects on the NFT marketplace.
The reaction of Big Companies towards Most Expensive NFTs
NFTs are digital assets that nobody can touch or feel. Then why are companies and celebrities spending thousands of dollars on this conceptualised asset?
Businesses follow trends and the core reason is the huge potential and cutting-edge technology that has redefined the way users behave and engage. Companies always want to ride with the current and trendy wave of digitalization and increase the value of their assets exponentially.
Furthermore, companies are always looking for potential opportunities to earn money and boost their earnings. NFT has huge potential to drive revenue streams and boost engagement for brands. Many top-notch brands that live on scarcity adopt their branded NFTs to increase customer engagement levels.
List of Most Expensive NFTs
The NFT ecosystem is evolving and growing rapidly. And with time more and more people are becoming millionaires and celebrities are willing to spend seven figures on these unique digital assets. NFT marketplace has recorded many notable milestones when it comes to the list of most expensive NFTs. However, the list keeps on updating depending on the latest market trends. Mentioned below is the list of the 5 most expensive NFTs sold.
#1: The Merge: The Merge was sold for $91.8 million.
#2: The First 5000 Days: One of the most expensive NFTs ever sold by a single owner for $69.3 million.
#3: Clock: This NFT was designed by Pak old for $52.7 million.
#4: HUMAN ONE: A hybrid style NFT artwork that was sold for $28.985.
#5: CryptoPunk #5822: One of the most expensive CryptoPunk NFTs sold for $23.7 million.
Why People Buy Expensive NFTs: Is it Madness or Money?
NFTs are productively facilitating people and markets to create and realise their sense of ownership. Many NFT projects are leveraging Crypto and creating value in the market by increasing community engagement and individual personal identity.
When asked why people are showing so much enthusiasm toward NFTs. There were limitless answers. Some of the owners bought NFT to enhance their digital collection; some bought them for clout; while others got hold of NFTs to enjoy authentic certification of something unique.
NFTs are novel digital assets and they are still in their infancy stage. The potential of technology is limitless, which is why one cannot guess where the madness will end. But one thing is certain, the future is digital and one cannot overrule the tech representation of digital assets. However, there is scepticism that there is no future for NFTs and people may start ignoring them due to the niche of a large market.
NFTs are highly volatile digital assets, and their market is super speculative. The future value of these digital assets is not easy to calculate because some of the NFTs with their unique characteristics and art hold immense value while others don’t. People purchase the most expensive NFTs because they offer scarce value ownership. Besides, there are some environmental impacts of blockchain technology we should not ignore. Similarly, we should not ignore the operational and transactional risks of NFTs, given the energy production infrastructure that we often disregard as being limitless.