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NFTs in the Philippines and What You Need to Know About It

2021-05-23

WHAT YOU NEED TO KNOW

In the Art Fair Philippines this 2021, a significant part of it was all about Non-Fungible Tokens or NFTs.

The Filipino artist Luis Buenaventura III was able to sell 222 editions of Satoshi The Creator – Genesis. This was his collaboration with Jose Delbo, an Argentinian artist. Each is sold for $1,999 on the platform Nifty Gateway. Also sold here are the Disaster Girl meme and Everydays The First 5000 Days.

This year, it appears that NFTs or Non-Fungible Tokens were able to explode out of the Ether. These are digital assets from toilet paper and tacos to music and art that sell similar to exotic 17th-century Dutch tulips for millions of dollars. However, can NFTs be worth the hype or the money? Some experts say that they are like a bubble that may eventually pop, just like the Beanie Babies and the dot-com craze. However, a lot of people believe that NFTs will be here to stay as they can forever change investing.

The NFT

The digital asset NFT represents objects in the real world like videos, in-game items, music, and art. People mostly use cryptocurrency to buy and sell them online. They generally have the same encoding as the underlying software that a lot of cryptos have.

Even if they have existed since 2014, NFTs are recently becoming more famous for purchasing and selling digital artwork. Since November 2017, people have spent more than $174 million on NFTs.

Since NFTs are generally rare and on a minimal run, they have unique codes for identification. According to the Yellow Umbrella Ventures’ managing director and Washington Technology Industry Association’s chair, Arry Yu, NFTs essentially create digital scarcity.

It is in stark contrast to a lot of digital creations that almost always have an infinite supply. Having the collection cut off can hypothetically increase an asset’s value as long as it’s in demand.

As we are in the early days, many NFTs are digital creations that have already been existing elsewhere in a form similar to digital art’s securitized versions and the NBA games iconic videos that are now floating all over Instagram.

For example, the digital artist famously known as “Beeple,” Mark Winklemann, was able to craft a composite of 5 thousand drawings every day for the creation of the NFT that is most famous right now. His product, “EVERYDAYS: The First 5000 Days,” got sold at Christie’s for a record-breaking value of $69.3 million.

People can see the whole collage of images or view the pictures individually for free. However, why have people become so willing to spend around millions for something anyone can easily download or take a screenshot of?

The reason for this is that NFT lets the buyer become the owner of the original item. Aside from that, a built-in authentication is included to serve as proof of ownership. The “digital bragging rights” are what collectors value more than the actual item.

How Can NFT Be Different from Cryptocurrency?

As a non-fungible token, NFT generally got built using similar programming that cryptocurrencies like Ethereum or Bitcoin had. However, that is the only thing similar about them.

Cryptocurrencies and physical money are “fungible.” It means that they can get exchanged or traded for each other. Aside from that, they also have the same value—a Bitcoin will always be equal to another Bitcoin, and a dollar has the same worth as another dollar. Because of the fungibility of Crypto, it is a trusted way of having transactions conducted on the blockchain.

NFTs are not the same as each of them has a digital signature that can make NFTs impossible to be equal to each other or exchanged for another. Even if EVERYDAYS and NBA Top Shot clip are both NFTs, they are not equal. An NBA Top Shot clip may not even necessarily have the same value as another NBA Top Shot clip either.

NFT: How Does It Work?

On a blockchain is where NFTs exist. It is a distributed public ledger that allows for the recording of transactions. You may probably be most familiar with the blockchain as this is the underlying process that will enable cryptocurrencies to become possible.

NFTs typically get explicitly held on the blockchain Ethereum. However, other blockchains support them.

The NFT got “minted” or created from digital objects that represent both intangible and tangible items such as:

•  Designer Sneakers

•  Music

•  Collectibles

•  Art

•  GIFs

•  Virtual Avatars and Video Game Skins

•  Videos and Sports Highlights

Tweets also count. Jack Dorsey, the co-founder of Twitter, was able to sell his first tweet as an NFT for an excess of $2.9 million.

NFTs are essentially similar to physical items of collectors, but they are digital. Because of that, instead of having the actual oil painting that they can hang on the wall, the buyer will instead get a digital file.

Aside from that, they also get to have exclusive ownership rights as NFTs can only have one owner at a time. The unique data of NFTs allow the transfer of tokens from one owner to another and their ownership verified. The creator or owner can have specific information stored inside them as well. Artists can sign on their artwork signed by having their signature included in the metadata of the NFT.

What Can People Do With NFTs?

NFTs and blockchain technology can allow content creators and artists to have a unique opportunity so their wares will become monetized. For example, artists don’t have to rely on auction houses or galleries to sell their artwork. Instead, artists can have them sold directly to consumers as NFT that can allow them to reap more profits. Aside from that, it lets people have a unique opportunity that can monetize their wares. For example, artists may no longer need to become dependent on auction houses or galleries if they want to sell their artwork. They can have it sold directly to consumers as NFT as this can also allow them to keep higher profits. Moreover, artists can have royalties programmed to get a percentage of the sales every time they sell their art to another owner. Artists can consider this feature attractive as they generally don’t get future proceeds whenever they sell their art.

When it comes to NFTs, art may not be the only way you can earn money. Brands such as Taco Bell and Charmin were able to auction off NFT art with a theme so they can raise funds for charity. Charmin was able to dub their offering as non-fungible toilet paper or NFTP. The NFT art of Taco Bell got sold out in just minutes with the highest bids at 1.5 WETH (wrapped Ether) that has a value of around $3,723.83. NBA Top Shot was able to sell more than $500 million last March as their single highlight NFT of LeBron James could fetch more than $200,000. The cat GIF previous 2011 or the Nyan Cat is a cat that has a pop-tart body. It got sold for almost $600 thousand last February.

Celebrities such as Lindsay Lohan and Snoop Dog have now jumped on the NFT bandwagon and are working on releasing their moments, artwork, and unique memories as securitized NFTs.

Ways You Can Buy NFTs

Whenever you want to begin your collection of NFTs, you have to get these essential items:

Get a digital wallet that will let you have cryptocurrencies and NFTs stored. You may likely have to buy cryptocurrency such as Ether that may depend on the currencies that are your NFT provider accepts. Nowadays, you can use your credit card to purchase different platforms, but most especially from Binance. You can have it moved from the exchange to your chosen wallet.

Do You Need to Buy NFTs?

Since you can now purchase NFTs, should you buy them? That would depend on a lot of things. It may be risky to get into NFTs as their future is still uncertain. There’s not enough history about it if you want to judge their performance. NFTs are new, so it would be worth investing small amounts for now. If you invest in NFTs, it would essentially be a personal decision. It will be worth considering this if you have enough money to spare, especially when a piece means a lot to you.

Always remember that the value of an NFT is entirely based on the price that someone is willing to pay for it. Since that is the case, demand will be the one to drive the price and not the economic, technical, and fundamental indicators that can usually influence stock prices or at least the general form as the basis for investor demand.

Because of this, the NFT may get resold for a price that is lower than what you paid. It can become difficult for you to resell it whenever people are not interested in it.

Aside from that, NFTs can be subject to taxes on capital gains, similar to selling stocks with a profit. As collectibles, they may not get the long-term preferential rates in capital gains like stocks, and they can even have a higher rate in collectibles tax. Always remember that cryptocurrencies that you used to buy NFT may even get taxed whenever their value increases since you purchased them. Because of that, you may need to get the services of a tax professional whenever you want to include NFTs in your portfolio.

Because of that, you need to approach NFTs in the same way as any investment. Make sure to do enough research so you would understand the risks. Included here is the possibility of losing your entire investment. In case you want to get into NFTs, make sure to proceed with enough caution.

Trade NFTs in the Philippines with Binance

Start trading NFTs in Binance NOW so you can enjoy the best NFT Crafting and Trading experience ever. Talk about business opportunities, craft your NFT, or curate events with us! For any investor, it would be best if you get involved in Binance Staking. It is a great avenue that can help anyone earn significantly. Suppose you want to have your cryptocurrency saved, just like in a bank where you can obtain interest. Consider Binance Savings. Binance’s crypto savings account has so many packages and products that would depend on the number of times you want to access your funds. Included here are numerous features, such as the APY rates investors would wish to achieve independently. The Flexible Savings of Binance can let people redeem their Bitcoin funds anytime with a 1.2% 7-Dat APY.

Also, consider having your cryptocurrency stored in a hot or cold wallet. You may even become active in the Binance exchange’s cryptocurrency trade. Earn tokens and support the blockchain network by having your assets locked and putting your cryptocurrency at stake. As your coin increases its value, you will get so many added benefits. With Binance Staking and Binance Savings, you can earn a lot of passive income. 

You may also get involved in trading cryptocurrency so you can have your funds work in a way that is way better than fiat currency. As the Philippines adopted blockchain technology and cryptocurrency, it would be best for the Filipinos to know how they can trade cryptocurrency. Doing this can significantly increase their earnings.

Go and download Binance from Apple’s App Store or Google Play NOW and use it to earn money from trading crypto. With Binance and the fast-tracked development and improvement of cryptocurrency, anyone can significantly earn so much profit. Use Binance so you can make your finances develop and prosper, as this can help anyone gain so much whenever they trade cryptocurrency.