NFT’S: a beginner’s guide

It has been over two years since non-fungible tokens (NFTs) came into attention and just over a year since the artist Mike Winklemann, otherwise known as Beeples, sold his NFT for $69million and made him the third most valuable living artist. However, the most expensive NFT ever sold was ‘The Merge’, by Pak, which was acquired by a consortium of over 28,000 buyers for $91million. The hype built around NFTs makes it difficult for some to have an understanding, and many others get the wrong idea about these digital assets. For instance, some think of it as a Ponzi scheme and struggle as to why NFTs have attracted the interest and money that they have to date. The below table shows the total turnover of those NFTs that have been in excess of $0.5billion, as well as showing the numbers of buyers and number of transactions todate.

NFT collection rankings by sales volume (all-time)

Source: Cryptoslam

A brief explanation of NFTs is that they are unique codes which prove ownership of assets usin…