Big Brands, Big Bucks, Minimizing Risks
Several Digital Asset Marketplaces are using the NFT model without the “risk” of using volatile cryptocurrency, i.e. value fluctuations of crypto, e.g. Ethereum.
In NFT Marketplaces we don’t have to buy and sell using cryptocurrency?
A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger. Types of NFT data units include digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from blockchain cryptocurrencies, such as Bitcoin.Non-fungible token on Wikipedia
Are NFT Marketplaces using Blockchain?
By definition all NFT Marketplaces are using Blockchain, but don’t necessarily need to be based on Cryptocurrencies for the buying and selling of digital assets.
The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed.Blockchain Definition: What You Need to Know – Investopedia
So, in lieu of cryptocurrency, some NFT Marketplaces are using Fiat money. What is Fiat money?
Legal tender is fiat money, or currency (bank notes and coins). It has value because a government creates it and backs it, and people using it have faith in its value. Fiat money such as US dollars can be used as an exchange for goods and services.Legal tender – Simple English Wikipedia, the free encyclopedia
Hey batter, batter, batter, batter! Swing, batter!
Major League Baseball (MLB) is now live on the Candy MLB NFT Network. Their Marketplace Opening Weekend (1/14/2022) produced stellar results:
With over 15,000 sales in three days, our secondary marketplace got off to a memorable start in its opening weekend. Join those fans who have already built up their collection by adding your favorite MLB stars and moments to your wallet.Email correspondence from firstname.lastname@example.org
The Candy NFT Network accepts ONLY USD and is available in the US and Canada. The MLB NFT Platform is still in “BETA” mode as it appears in small characters on the top of the page. This just means that you may find bugs in the system. I just found one now using Chrome, and the “Sort By” feature on the top right of the screen.
What is a [Digital] Asset Class?
An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are thus made up of instruments that often behave similarly to one another in the marketplace.Investopedia.com
Where will people flock to sell and buy their digital assets? That may depend upon the [digital] asset class the assets align under. For example, NFT Art may be the simplest NFT Marketplace to buy and sell works of digital art. However, collectables that go under extreme scrutiny, such as Sports Memorabilia may gravitate toward NFT Markets with less volatility from a cryptocurrency. Under normal, fiat paying conditions, those who invest in memorabilia are looking for stability in an investment from traditional, physical memorabilia. We can assume that same digital asset class of memorabilia would be sought by conservative investors, and would minimize risk when the time comes to sell the digital asset. Art NFTs are a gamble in may cases, and one might argue, so is cryptocurrency.
Experience an NFT Marketplace with One Digital Asset Class
Obvious benefits, functionality around the NFT marketplace with a single asset class allows the owners of the platform to specifically cater to their primary audience. Features that you might see with an Art NFT marketplace might differ from a sports memorabilia NFT Marketplace. Also, lots of traditional, physical assets that morph to digital assets have a rich history, and experience sought by particular collectors. If you go to an NFT marketplace without a specifically catered to digital asset class, the buying and selling experience will be muted by comparison.
MLB NFT Marketplace with “Custom” Properties
Because of the single [digital] asset class of baseball memorabilia, the Candy NFT Platform can deliver a unique experience to their buyers and sellers. Each of the digital assets are showcased to accentuate their customer base loyalty such as the classic baseball trading cards, but now digitized. Each baseball “player” card has a set of unique digital properties, recognizable by the physical trading card collectors, such as a “Player Bio” including age and height.
Even referencing the “classic” style NFT Marketplace functionality has it’s own unique display, such as List Date, Edition #, and even a “Get it Now” button. There are other types of digital assets particular to the MLB NFT Marketplace, such as a “World Series Trophy” NFT, and a “MLB Play of the Day” (Below).
Veve Digital Collectables – Marvel NFT Marketplace
Another great example of a digital asset marketplace using Fiat tender instead of Cryptocurrency. Comic books also have a rich history of physical collectibles with an eye toward a stable investment over time. Buying and selling with cryptocurrency adds volatility that a conservative investor may not want.