We all understand what classical art is but there is something new in town. Now what was once hand-painted art pieces have transformed into NFT – which is something that exists in crypto-currency blockchains.
It is all part of our new evolving metaverse.
Non-fungible tokens (NFTs) are a new type of virtual asset that has fuelled much of the growth in the metaverse.
Metaverse, a term first coined in science fiction, is a combination of the prefix “meta”, meaning beyond, and “universe”.
It refers to shared virtual worlds where land, buildings, avatars and even names can be bought and sold, often using cryptocurrency. In these environments, people can wander around with friends, visit buildings, buy goods and services, and attend events.
The concept has surged in popularity during the pandemic as lockdown measures and work-from-home policies pushed more people online for both business and pleasure.
The term covers a wide variety of virtual realities, from workplace tools to games and community platforms.
Many of the new platforms are powered by blockchain technology, using cryptocurrency and non-fungible tokens (NFTs), allowing a new kind of decentralised digital asset to be built, owned and monetised.
An NFT represents an intangible digital item such as an image, video, or in-game item. Owners of NFTs are recorded on a ‘blockchain’, allowing an NFT to be traded as a stand-in for the digital asset it represents.
According to Reuters, the NFT market has surged during the pandemic with $2.5 billion in sales for the first half of 2021, compared with just $13.7 million a year ago.
Some NFT enthusiasts see them as collectables with intrinsic value because of their cultural significance, while others treat them as an investment, speculating on rising prices.
This type of artwork has existed for a few years now but recently the market has exploded. Many client NFT’s can be looked at as collectables like stamps or watches. They all have different functions and some brands like Nike are even using NFT’s to promote their shoes or bands are using them for people to find their songs.
However, the most popular use of NFT’s at the moment is situated in video games. People can essentially collect characters or buy them with cryptocurrency to be inserted back in the game once more.
“Warriors of Aradena sold out in 30 minutes where we made over $1 million,” said Thomas West, the CMO and founder.
An example of a successful collection that is making huge limelight at the moment is the MaKaVerse NFT.
The entire Meka NFT collection sold out on October 7, nearly a week before the actual artwork for the 3D mech-suit avatars was revealed. Since then, sales on OpenSea have totalled more than 20,000 ETH. This is approximately $70 million.
Following the playbook of popular NFT avatar projects like CryptoPunks, Pudgy Penguins, and Bored Ape Yacht Club, each Meka avatar is unique, with its own colour palette and composition.
They belong to one of four factions: Originals Meka, Mirage, F9, and Gadians. The project gained huge traction leading up to its launch; its Discord channel gained over 200,000 members.
During a five-month trip to Asia, European designers Mattey and Matt B, whose clients have included Apple, Nike, and MTV, had the idea for the MekaVerse. Each Meka is a one-of-a-kind 3D illustration produced by an algorithm that combines hundreds of designed visual elements.
What caused the Meka drop to become so hot? It’s most likely a combination of factors, ranging from the appealing robot-suit concept to the growing buzz surrounding previous collectable NFT projects.
What’s interesting is that market buyers can’t see what they’re getting just yet with MekaVerse NFTs. Every image on OpenSea right now is an animated placeholder ahead of a collection-wide reveal which was planned for 11 October 2021.
As such, there is currently no way to tell whether users will pull an NFT with rare attributes or something more common.
According to Decrypt, the project reported having the holders of 172,876 unique wallets register for the raffle. Ultimately, 8,593 NFTs were sold for a fee of 0.2 ETH ($725) each, yielding over 1,718 ETH—almost $6.3 million.
While some see the NFTs as a booming billion-dollar industry, others speculate that it could quickly fizzle out.
Even though this world is living in a metaverse, the MeKaVerse collection is only just one example currently making millions – who knows what lies ahead for our online marketing phenomenon.