Introduction to NFTs
Main NFT Institutions
The growing popularity of NFTs has necessitated the establishment of certain institutions and applications to facilitate the adoption and usability of the technology. These institutions range from NFT marketplaces to NFT launchpads and auction houses. This article will explain the different types of NFT institutions and each of their functions.
NFT marketplaces: Non-fungible tokens (NFTs) have been around for a while, but 2021 was the year they made a big splash in the media. Millions of dollars have been spent on different NFT projects by fans who have jumped in on the new NFT craze.
So, where are these NFTs being purchased? NFT art marketplaces have sprouted up like a vibrant virtual high street, selling digital art and collectibles at every price point imaginable. There are even specific marketplaces for different types of NFTs, like Art NFT marketplaces, where they deal exclusively in art-based NFTs, e.g., Foundation.
Some of the most popular platforms: NFTrade, OpenSea, Rarible, Atomic Market, SuperRare, Nifty Gateway
Creation hubs: The different marketplaces mentioned above all have individual approaches to creation. For example, SuperRare focuses on high-end NFTs rather than NFTs made by the new creators, highlighting renowned artists and delivering limited-edition works.
On the other hand, platforms such as NFTrade make it incredibly simple and easy for new and existing creators to get in on the action. The process of creating an NFT is open to anyone and doesn’t require any prior experience. The platform also helps creators by providing an option to incorporate the minting cost into the initial price.
NFT tokens and data aggregators: These are tools that help users collate all their options in a single place. It gets more difficult to maintain track of all projects as the NFT sector becomes more competitive and broad. Aggregators play a vital function in this. They make it possible for new investors and enthusiasts to find viable projects to support and invest in.
Currently, there are a plethora of artists, projects, and tokens available. This makes it very challenging for users to sift the great projects from the mediocre ones. Finding the most significant projects on the market might be difficult using traditional methods. Some of these logistical difficulties can be alleviated by using data and marketplace aggregators.
NFT Auctions: NFT auctions work pretty much like traditional auctions, the main difference being that NFT auctions are completely digital. Potential buyers can bid for their favorite NFTs through these auctions, giving them the opportunity to start out low. Most NFT auctions also display the transaction history of each asset clearly to maintain complete transparency on both sides.
NFT auctions are now seeing record-breaking sales, such as Beeple’s $69 million Christie’s auction, which has made headlines around the world. We’re also starting to see traditional auction houses like Sotheby’s setting up a digital platform for the expressed purpose of conducting NFT auctions.
NFT Launchpads: Launchpads have recently become some of the most popular and sought-after applications in the crypto sector. They provide a simple, secure, and viable means for regular people to participate in project investment rounds that were previously only open to venture capital firms and high-net-worth individuals.
Users are introduced to high-potential and vetted collections and applications through launchpads at the earliest possible stage of fundraising, democratizing the seed and early-round investment process.
NFT collections that launch via a launchpad, also known as INOs (Initial NFT Offerings), are similar to ICO launchpads. Both enable new creators and developers by connecting them directly with an interested audience, empowering them to generate funds, and helping them establish a presence in an established market and community. Additionally, users have the opportunity to acquire the NFTs at a lower price during the initial offering.
Some popular NFT launchpads include GameFi, Poolz, DAO Maker, Binance NFT, and NFTb.