What Are NFTs: Why Are People Buying Them? | Talking Point | Blockchain

check this out would you pay to own these selfies well apparently thousands have bought it they paid anything from three to a few thousand us dollars so much so that this 22 year old indonesian students digital portraits have traded in more than a million us dollars why would anyone pay for this well this is part of the latest internet sensation known as non-fungible tokens so what exactly are nfts well the term non-fungible means that they are unique just like your thumbprint no two nfts are the same so unlike physical money where a dollar can be exchanged for another dollar each nft is a unique digital token that cannot be changed and nfcs come in many forms digital art pictures music games even memes what's the hype about nfts and is it that lucrative so in this episode of talking point i'm going to investigate if i should invest in nfts i only started nfts in august and i have turned three thousand to thirty thousand i'm starting my investigation with tammy tay she's been running this beauty salon for the past two years and was clueless about nfts until this is one of the first nft projects on uh on the ethereum network and it was i bought it for 170k and now people are offering me 3 million for it i was watching a lot of youtube and then i watched this guy and he was mentioning something about nfts and here i am how does someone like me start buying nfts so first you need to have ethereum and metamask [Music] and ethereum is the digital currency kind of like your sing dollar and a metamask well that's simply your digital wallet you can see what other top collections over the last seven days currently is at 3.1 usd the floor price is at 2.99 east so how should i go about selecting an nft i would definitely recommend you to get like the blue chips but they are all pretty expensive oh okay and how do i know whether they're blue chips or not they have been in the space for a while it usually is like at least six months then we can determine that's approach six months six months is considered long term wow okay so after six months if the floor price is rising gradually it doesn't dig too crazy then i would say that it's a blue chip when it comes to nfts you can buy and hold it short term and sell it for a profit so we call this a quick feed okay or you can be a holder and then hope that you know it will go even higher the floor price of nfts fluctuates based on how much people are reselling the digital tokens certain nfts considered premium have a relatively stable floor price but as you can see it's costly so how is it that some of these nfts especially the blue chip one seem to be so expensive okay so for let's say bot apes they have already established themselves in this nft wall as like one of the most solid community most of the people who are entering it right now they are all celebrities they want to have the most expensive nft so it's like a flex it's like a golf it's an exclusive club it's like yeah and then for the normal people going in um actually want to know what the next big thing is so they get the first access to like certain projects that's why people pay that much to get first dips so how do i actually know which ones to buy and which ones will rise in price i started a discord community in singapore okay to gather people who are in energies and crypto so inside my community say we are experienced nft enthusiasts so we would be able to share information with each other [Music] okay so now let's buy something so we look at this this came out not too long ago i feel that it's very undervalued what is this it's actually like land in the meta bus okay tammy is eyeing one of the 5041 plot of lands which will make up the virtual city turf essentially it's owning your own piece of land where you can then build it up and connect with other people around the world virtually this is actually a good time to buy because you want to buy before the hype not during the hype so now you have your transaction fee and i have to pay like 61 or guest fees so yeah i'm gonna confirm this and it's processing and then it will appear in my wallet after it's done okay and your plan now is to hold this i'm not sure how if there will be movement in the price but if i do see it go to one if i'll sell right away but you'll have to check back with me in like a few weeks nft started making their appearance sometime in 2012 as a non-descript token they were called colored coins they could be used to represent real-life possessions like property coupons even subscriptions it was only about 10 years later when big brands like coca-cola gucci nike adidas they all picked up on the trend and released their own nfts popular celebrities like jho and nmm also release their own collection and they even change their profile pictures to nfts signaling that even celebs have jumped onto the nft bandwagon and the rise of nfts has been swift according to dap radar which the data acquisition and analysis company nft sales reached a whopping 24.9 billion us dollars in 2021. now that's a surge of more than 260 times compared to a year ago but what makes these nfts so valuable to put it simply say you wanted to collect a selfie of me these may both seem like the exact same selfie until i question which is the original selfie this is the key difference between an nft and a non-nft every nft is unique because it keeps a comprehensive data of all its past and present owners meaning you would know who the creator is and who the selfie was passed on to this nft is no longer just a digital picture but a digital token that can be bought and sold on nft marketplaces but are nfts really worth the investment crypto is like a moonshot and nfts are like the moonshot within the moonshot [Music] i'm learning all about non-fungible tokens or nfts the latest digital investment craze about a week ago beauty salon owner tammy tay had bought an nft expecting to make some profit i wonder how it's going so i decided to check in with her hi tammy did you manage to sell your nft so i checked the price yesterday it was about 0.8 ethereum three thousand dollars based on current equivalent price right when we bought it it was about zero point four eight million so that's a thousand five so it turned from thousand five 3 000 which is actually really good i feel that this project will do well so it's okay for me to hold anyways if tammy had sold her nft she would have made a decent profit of over 1500 singapore dollars it's just been 10 days since she bought this nft so she's decided to hold on to it hoping that the price will go up further before flipping it but are all nfts that lucrative crypto is like a moonshot and nfts are like the moonshot within the moonshot her rayming is co-founder of the woke salaryman a popular local personal finance social media account with over 290 000 followers so it is possible to make money through nft i think the the real the real question is like what percentage of these nfps can actually make money and become successful in the future a lot of the projects that will actually allow you to make money those already cost a lot or require a lot of networking to actually have people get you into the project early for the most part nfts are created by less established teams which might not have the ability to maintain the value of nfts later down the line so i think most of these projects will lose money except for a small percentage we should be exceptions and because of that it's a very not secure form of investment i don't think nft investments are for everyone so who are the people who should not be buying nfts so i think one group of people who definitely should not buy is the people who who fomo so like you know fear of missing out they see everyone make money through nft then they just jump and do it blindly which is bye bye bye and then in the end they lose a whole bunch of money or if you're treating like nfts as a replacement for more conventional investments like uh investments in the stock market or your retirement fund or even like you know you treat it like a born portfolio something like a cpf i think that's definitely something you you shouldn't do i think nfts are the riskiest of the riskiest asset class out there nft is still very untested you know asset class there's not a lot like trade record you must be prepared for the possibility to lose all of it there's also a lot of volatility the price of if can fluctuate like massive swings right lastly also there are a lot of like uh scams and rock pools in this space as well apart from high market volatility scams have started to hit the nft space jackie yup who has been in the crypto market since 2017 had fallen victim himself i heard stories about how people were making a lot of money buying and flipping nfts obviously that piqued my attention you know i was looking around and a collection called eight punks caught my attention there was limited supply i straight away just bought at least five of it without been thinking and then about one week later i realized that i was ragpu essentially you know um i realized our scam so what is rockpool so rappool essentially in a world of crypto in the world of nft right um it means that the project team ran away so everyone whoever started this just disappeared you can't find anything about it the twitter was uh gone everything was gone nothing so yeah just left with the jpegs the images that you bought that's it but but isn't that what you paid for nft essentially what drives value to nft is the community behind it the utility behind it what the team promises to deliver to you as a holder without team without community you are just holding a jpeg i can't flip it or i can't sell it anymore no one's gonna buy it it's worthless i think i paid half an eve so at that point was about a couple of thousand dollars so did you report this to the police i didn't report to the police an analogy to to help you understand is basically you're supporting a kickstarter project okay if the kickstarter project describes what they do and then you believe in it you support it and they don't deliver it like can you report the police you know you can't really write because you know you bought it in the first place is on the onus is on you to do your due diligence right and if they deliver something to you which is the jpegs right but whatever they promised maybe they didn't live up to their you know whatever the public expectation is you can't really report an nft to a police so is there any way to spot a rug pool if a project doesn't publicly say who's the team behind it so like the profiles the creators are anonymous i think that's a very big flag to me so if you can't pinpoint the person or creator behind an nft or if the plans for an nft project seem particularly ambitious chances are it's not legit what are some of the other nft scams that we should look out for okay why not we take a little quiz to see whether you can spot the scams or not let's go there are some questions if you think it's a scan press this red button if it's not the blue button could this technical support service be a scam all right your ticket number is going to be go ahead and hop into our support group provide them i will say it's not a scam this is actually a scam oh you have been invited to a server usually a lot of invitations more likely than not they're actually scams so you should always check which are the servers that you are invited to these customer service staff at scam i have no idea who gideon is i would never who gimmer is you know i think it it could be a scam not a scheme because there's an official identity that's being tied to you know gideon and the moderator how would i know well i mean if you're in the official discord of the project you can see the associated roles and uh the admin tools and the you know the roles that assigned to them so in a way as long as i'm in the or on the official platform then if the moderator is there there's a very good chance they're all legit oh azuki original new azuki or azuki polygon but why would you call it azuki original new and based on the number of items being sold i'll go with not scam this one is a very popular scam as well the legitimate one is the second one because there's a verified button you know the blueprint the team so that's actually verified by openc now that i know about the risks that come with investing in nfts there's only one more thing left to investigate how to create nfts and i'm checking in with this influencer hi steven nice to meet you hi everyone see who i'm gonna be hanging out with today this is ray your typical social media influencer with over 16 000 followers rey started creating her own non-fungible tokens or nfts in 2021 with some selling and a whopping 3 500 us dollars but guess what rey isn't real she's virtual existing only in the digital realm i do wonder though if rey can give me some tips on how to create my own nfts i'm dialing her up hey ray hi hi steven nice to meet you have you sold any nfts last year i sold my first nft collection series titled take a bite with rey's nfts fans would have inside access into her virtual world and own a piece of herself that could be traded in the future so tell me what's the secret to selling out your nfts actually there isn't really any secret i am very lucky to have a passionate community of fans well i have been thinking about creating my own nfts too uh do you think you can show me how i would love to show you steven but i am afraid that it is going to take longer than this program from conceptualization to production each of my original nfts requires over 50 hours to produce wow i can't believe that 50 hours to create one of rey's nfts i do want to get in on the action so i still need to find out how to make my own nft a quick search online led me to shavon wong to date she has created hundreds of nfts lucky for me she is in virtual so i've been hearing about all these nfts and i thought i might try making my own so steve basically if you want to make an nft you really have to start from the basics of having a product what do you have in mind okay i have an idea of something that we could probably film and do is it creative and fun i think so yeah okay let's give it a shot so this is my idea for an nft i've been doing some of these crazy escalator videos where i sort of disappeared to nowhere yeah so if you can be kind of around there and basically help me film it as i sort of make my way down and you know disappear behind the sofa sure yeah a magic drink let's give it a try okay and here we go an interesting place on the surface oh [Music] beautiful okay so this is the clip we took right i think it's the cutest i like the grown at the end it's very relatable all right right now what will happen is we can put it on open c okay so from here you will put the video in this spot so essentially this is an account on openc and i would open my account then i put my video up i guess yes right now i'm dragging a video over a thumbnail is needed for preview image and then we need a name for this piece steve on the escalator okay so first you list it and basically it's up there and then after that you can put it up for sale for a price how much do you think it's worth a thousand dollars and then we press complete listing and then this is the gas fee that you'll be paying for it okay so because you're using openc here you have to initialize your wallet which is a one-time gas fee but it all changes from different platforms like some of the different platforms you have to pay a minting fee and then a listing fee and then at the end usually for openc they take a two percent commission but for other platforms it can take up to 15 commission so yeah it's all a bit different so once it's listed then i just sit back and wait for people to buy but the idea of somebody being able to just come across your art piece randomly right is going to be quite difficult because there's just so much nfts right now on openc so there's a lot of marketing and branding that has to be done so it's going on twitter on this course so making sure people know this piece exists before they can even consider buying it so what we've done is just a demonstration i'm not actually gonna put that up for sale but now i know what the process is like and i know that there are costs involved too which also means that at the end of the day after everything you've done including publicity you may or may not make money from it whether buying or selling nfts there are risks involved so what does the future hold for nfts helping me is chair hotline he has been paying close attention to the rising trends in the blockchain space are nft is here to stay i think we are barely scratching the surface of nft i think uh moving forward right there could be three possible landings for nft uh on one spectrum it will be a wawa west there's no regulation it'll be very vibrant but it will also have a lot of activities that could be criminal in nature like scams money laundering on the other spectrum right it could be very regulated strictly just like how china is regulating nft now you can only buy but you cannot resell you can give it to other people i think there's also a possible lending that is in between balancing the risk and also the opportunities afforded by the nft so it will be likely regulated for example if your nft has elements of a financial product you'll be regulated by the financial regulation or if like uh the transaction amount access certain figure like 10 000 right then the anti-money laundering regulation might come into play and what are some of the other future uses of nfts that we can expect for example nft can be used as a form of digital identity for example for your passport or even your nric with that right you are able to sign any uh digital transaction you can also like issue educational certificates as nfts or it can even be used in real estate for example one uh resort uh project in into nature they actually tokenize all the villas as an nft with that right it makes it easy for the buyers to sell or transact yeah villa nft it saves you the trouble of going through to the lawyers and the paperwork to transact this kind of assets we will be seeing more and more real world assets being created into nft [Music] wow i didn't realize nfts could hold so much potential and it could be just a matter of time before the technologies supporting nfts can be used to benefit us in other ways but as for investing in nfts i've learned that you know it's not that easy to make a win fall from it and the risk can be quite high so i think i'm going to think twice before i start investing in nfts [Music]

Channel: CNA Insider

Views: 73,733

Keywords: CNA, Channel NewsAsia, Talking Point, Steven Chia, art, digital art, nft, non fungible token, cryptocurrency, ethereum, digital currency, metamask, investment, Steve Chia, metaverse, virtual land, digital token, blockchain

Id: 28yqo5poVaQ

Length: 22min 41sec (1361 seconds)

Published: Mon Mar 14 2022