Non-fungible tokens, or NFTs, have made a lot of noise lately, especially after some of such digital assets were sold for millions of dollars. Now, business and finance students have a unique opportunity to see how this new market grows and evolves. In our short essay, friend, we will tell you more on what is NFT market and what are new opportunities for students.
What it is NFT?
NFTs are digital tokens created, or minted, on a blockchain. These tokens are different from cryptocurrencies because each token is unique and has a unique value. NFTs are digital assets, and their owners can sell, buy, or share them with others.
Today, many students watch how the NFT market grows in real-time. Most NFT tokens are collectibles, and now NFTs have become very valuable for some people, just like artworks, baseball cards, and other real-world collectible items. At the same time, NFTs are much easier to trade than physical collectibles, and you can tokenize virtually anything.
NBA Top Shot Pushes the Boundaries
Nothing illustrates the potential of NFTs better than NBA Top Shot. Users can buy packs of virtual cards with the highlights of NBA games. Such packs can feature from 3 to 12 moments, and their cost varies from $9 to $1,000. If you decide to buy a pack, you will only be able to know what moments you got after making a purchase.
The memorabilia industry hadn’t seen anything new for a long time, but NBA Top Shot changed the situation dramatically. These virtual cards have tremendous growth potential. Like traditional baseball cards, NBA Top Shot creates rarity because there is a limited number of moments minted. Fans can add new moments to their collections by buying them on the marketplace.
Top Shot has become big news not only in the world of crypto assets but also in sports, in general. Fans are excited about an opportunity to buy highlights of NBA games as unique moments, and one of the best things about these digital collectibles is that they add an element of interactivity.
Thanks to NFTs, students can see how the world of crypto assets and blockchain evolves, in real-time. NFTs like Top Shot enable people to learn not only the digital asset economy but also gamification. Future managers and entrepreneurs can learn a lot from Dapper Labs, which is a company that created Top Shot, as well as many other NFTs.
Not so long ago, this company was just a small startup, and students can see how it grows and overcomes challenges. The experience of this company is especially valuable for learning because it works in a unique area, so it needs to deal with unique challenges and come up with unique strategies.
Monitoring the Future Trends
The NFT market is still very young, and most companies in this niche are still at the beta stage or are going to launch soon. As a result, something new happens in this area all the time. For example, after the success of Top Shot, the sports NFT niche has also seen the launch of the MLB NFT platform created by a well-known baseball card company Tops. Besides, Dapper Labs have already started to collaborate with UFC and NFL.
The NFT market is very active now, and it added a lot of momentum to the memorabilia markets. However, any trend declines at some point. People will continue to create and trade more and more NFTs, the rarity factor will lose its significance, and the development of markets will slow down as a result of their growth.
For some people, NFTs are a hobby, while others consider them an investment. Some collectors may not plan to sell their NFTs anytime soon. However, as the price of Top Shot and other digital collectibles reaches millions of dollars, many collectors reconsider their hobby and realize what opportunities NFTs have to offer. There’s no need to choose between investment and hobby because the NFT market combines the two and has some benefits for everyone.