The NFT has been making a buzz for months now as some were reported to be sold for millions of dollars as if it is something that one can touch. As an example, Beeple’s Everydays — The First 5000 Days was sold for a whopping $69 million in March, making it the unbeatable king of NFTs ever released.
It’s been overwhelming months for artists and cryptocurrency projects, releasing limited editions and NFT related games or gimmicks that drove its prices to the moon. But the big question remains since the market has been flooded with various NFT projects, is it sustainable in the future?
Well, that depends on the NFT’s nature.
NFT as art
For the early part of the NFT’s global craze and recognition, the majority of the collections were digital art and nothing more. It’s simply an artwork that uses blockchain technology to provide public proof of ownership. After buying it, you can either store it in your Wallets with high hopes that it will appreciate over time, or sell it at a higher price for some profit.
However, concerns have been popping around social media platforms regarding its future because some users do not care for proof of ownership, but the fact that they can simply take a screenshot of it or save the art as a typical digital picture. For others, it’s an awful waste of money, considering that it was only hype as the main driving force for buying something that could be worthless in the future.
With tons of NFTs minted every day, sustainability has been raised as everyone can make it and copy one’s work. As it is still a new market, there is no assurance that once you bought digital art today, it will have more worth in the future.
NFT as a utility
Upon the rise of criticisms for NFTs as digital art, the growing movement to make NFTs usable has gained traction over the past several months. NFT staking or farming is one of the newest notions. This means that aside from buying NFTs to hodl or putting it again to market upon its acquisition to earn a profit, one can stake the NFT to a protocol as if it was a native token of a cryptocurrency project.
With this, aside from the rarity of the NFT as the selling factor, its utility is also a major consideration.
NFT as an investment
While it can be said that “NFT as a good investment” is still debatable, it can be deemed that an NFT that has utility is the best way to go. This is because the NFT’s future yield is not determinative of how the hype can be sustained, but its ability to produce yield by simply staking it.
With its “passive income generator” nature, it’s an asset one should have and collect, as the more you have staked, the more income you’ll have without lifting a muscle.
PrivacySwap’s NFT is not any other NFTs in the market. Aside from its ultra-limited supply of 1,500 NFTs, it can be used to gain rewards by staking it or boost you’re ROI when you stake Privacy Swap’s native tokens, the PRV2 and PRVG.
With this rarity, it is expected for its price to soar as these 1,500 NFTs are the only NFTs that one can use to make the most of the PrivacySwap ecosystem. Since NFTs are based on blockchain technology and they cannot be replicated or altered by anyone, this means only 1,500 users, or less, can earn passive income or boast their very own rewards upon staking their PRV2 and PRVG.