NFT trading volume and popularity increased last month. How one crypto fan turned $600 into $56,000 commercial NFT An NFT coin trader earned over 6,500% returns from his trades on OpenSea. The latest piece of art to be added to the list of non-tradable tokens, which sells for around $100,000, is the rare collectible EtherRock. Top fashion brands Louis Vuitton and Burberry are now getting into NFTs and online gaming. Crypto enthusiasts and gamers in developing countries are now turning to NFT trading and gaming, motivated by additional income generation.
Nigerian NFT coin investor made $55,400 profit in 47 days
As readers of know, NFTs are cryptos that represent art, music, collectibles or in-game items. These cryptos have been around since 2014 and have gone mainstream since traders and art collectors use NFT coins to buy and sell digital artworks. Since Bitcoin’s 2017 bull run, a total of $174 million has been spent on NFTs. The “digital scarcity” of NFTs is increasing their price. NFT collections are often unique or have a limited runtime and are often traded online in peer-to-peer marketplaces such as OpenSea.
Most digital creations are virtually endless in supply; however, assuming demand in the NFT market, cutting off supply increases the value of NFTs. Art collectors and traders make a profit on OpenSea by exchanging digital art. @notEezzy, an NFT trader and art collector, converted 0.3 ETH ($600 at the time) to 20 ETH (now $56,000) in less than 50 days. Crypto fanatics bought NFTs with a short holding period to sell them for a quick profit of around 95x their initial investment. NFT’s investor shared details of the transactions that led to its high profitability in a Twitter thread.
Among the most notable transactions by
@noteEezzy, 445% on 1.2 ETH. Includes the purchase of two Cool Cat NFTs worth 0.22 ETH sold at a profit of 5. Cool Cats is a randomly generated collection of 10,000 NFTs programmed on the Ethereum Blockchain. After several transactions, the crypto enthusiast bought an NFT from the Bored Ape Yacht Club collection, a limited collection of NFTs. @notEezzy sold all his Ethereum earned from NFT transactions for a Zombie Bored Ape and sold it for 20 ETH, a high-value transaction that ended his journey to earn more than 6,500% returns in 47 days. The trader acknowledges that he made several losses between NFT transactions before reaching 20 ETH.
@noteEezzy key to most of the profits was the demand for digital art from different NFT collections. The recent surge in NFT sales supports the narrative of the high demand for NFTs. In the first two quarters of 2021, NFTs generated over $2.5 billion in sales. In July 2021, sales peaked at $1.2 billion, almost half of the sales volume of the first two quarters or six months of 2021.
Brands are turning to NFT
Fashion, sports brands and online gaming apps are creating NFTs of their latest collections, triggering an exponential increase in demand. Luxury fashion houses Burberry and Louis Vuitton have turned to NFT games to promote their collections. Burberry is preparing to release an NFT game character called Sharky B, which is a limited edition featured in Burberry’s TB monogram.
France-based fashion brand Louis Vuitton has launched a mobile video game where players can collect 30 free NFTs as they follow the brand’s mascot, Vivienne, to Paris. In-game NFTs are an additional source of income for traders in developing countries. NFT’s sales are highly profitable due to the “digital hits” and this provides additional income for a few gamers and crypto fans like @notEezzy.
Since the value of an NFT depends entirely on what another crypto trader or art collector is willing to pay for it, multiplying @notEezzy’s earnings may not be that difficult with rare collectibles available for purchase on OpenSea. Rather than the underlying factors or indicators that affect stock prices, demand drives price. If demand drops, an NFT’s resale value is likely to be less than its purchase price.