What value for my NFT?Understand everything in the primary and secondary markets free : Receive your full PDF guide

The universe of NFTS is slightly different from that of more classic cryptos, all those who tried it had to realize it. Au-delà de l’aspect technique de ces tokens aux caractéristiques uniques, il existe aussi un autre paramètre auquel peu semblent avoir pensé : le marché secondaire.

The crypto, land of freedoms

Welcome to Cryptoland where decentralization and libertarian spirit reign supreme.No more control by central organizations, (almost) full-cannons to users, everyone can become their own bank and above all can benefit from digital freedom which only experienced an equivalent at the time of the beginning of the Internets.

Thanks to Bitcoin and cryptocurrencies, we have indeed been able to discover a new way of approaching creation and monetary exchange and since Bitcoin exists, many of them have been created ... without surviving very long.The reasons are multiple, between technical problems, scalability or real utility, many cryptos and blockchain have now fallen into oblivion or have been replaced by other more efficient.

Then came the time of the tokens, these tokens dependent on a crypto to take advantage of its stability, security and number of users but above all an interoperability between projects while respecting a standard like the ERC-20 for Ethereum for example.This opening to a larger number of people with the possibilities offered by a blockchain made it possible to innovate once again for those who wanted to undertake in the adventure.

But there again, many projects have failed.The fungibility of tokens allowing to meet certain needs, it lacked a piece to the puzzle: make a new breed of token more accessible: non -fungible tokens (NFTS).

Here we are in early 2018, a good crash again through the throat, to meditate on the meaning of values in the face of the few cryptokitties obtained at costs 10 times higher than their initial price.Then the fateful question happens: how can you resell them?

The meaning of values

It is at times when the market calms down that it is easier to ask the right questions.

More Fomo around you, more revolutionary projects ready to remove world hunger, no, essentially projects that seek to find concrete users related to their user community.This is all the advantage of a Bear Market, the survivors know (or at least wonder) why they are there, and the response "for money" in these moments is no longer essential (or a little lesslet's say).

Regarding "classic" cryptocurrencies, things are quite simple.If you are disgusted, it is very simple to go on an exchange and sell your corners at low prices before drawing a line on this painful experience.For NFTS ... It's a little more complicated and it is one of the main reasons why most buyers keep their assets.Indeed, unlike the cryptos markets, assessing the value of an NFT is an exercise that is not within everyone's reach and the exercise requires crossing several indicators specific to the project.

The example of cryptokitties (CK)

Bought at the end of 2017, the initial price was not exorbitant: 0.02 Ether (approximately $ 20) but the costs raised the total between 70 and 150 dollars very easily.Once the costs have been returned at decent levels, buyers find it disappointed that the only offers received are around 0.005 Ether.Yet the parents sold at 0.2 Ether each.

With this problem which seems straight out of a school mathematics manual, the solution is far from obvious.The criteria to be taken into account are:

These indicators (beyond speculation) have something very concrete and have a form of objectivity.They can thus serve as a basis for a concrete assessment.Then comes into play the negotiation stage and it is the ability to find the right price between buyer and seller who will determine the sale price.

The example of cryptokitties can be applied to practically the whole class of "collectibles" which are based on "breeding" (Blockchain Cuties, Dragonereum ...).

ok no i know these are definitely australian BURGER.Rings. BURGER FLAVOUR. BURGER RING. i love these so mu… https://t.CO/LT7E7NI8JQ

— FattyFlamingo Sat Feb 06 06:45:07 +0000 2021

The example of video games

Another category that uses NFTS are obviously video games.Anyone who has already played an RPG knows the value of a legendary dropped weapon by beating a final boss of a dungeon.This weapon will not have the same value by its characteristics and the bonuses it grants to the character and will therefore be worth more expensive than a basic weapon obtained at the start of the dungeon.In a non -exhaustive way, it can be:

The evaluation criteria will not be the same as the collectibles for a very simple reason: it is not the same case of use.This is one of the factors that makes the assessment of the NFTS more complicated than the rest, not only is each active different but in addition they do not all serve the same thing.

It is therefore according to the need for use in the game that a seller will agree to sell off his NFT or that a buyer will be ready to pay him at gold prices.Difficult to speak of objectivity in the criteria because this market may also depend on the events that will arrive in the game or on a change in global strategy because of a nerve (change of characteristics of a spell or a power bydevelopers).It will therefore be necessary to do a further research to know why an asset will suddenly be worth more or less expensive than two months ago.

The primary and secondary art market

Since at the moment everyone is tearing out works of digital art and many are discovering a collector's passion, it seems important to recall some indicators that surround the art market.

First of all, this market is all that is most subject to the planet.What will please you will not necessarily like and vice versa.And this is the importance of this market, it is based on everyone's tastes and prices seem to escape all logical.However, the art market is one of the most codified, so there are many diagrams to take into account before investing ...

The primary market

We call primary market all the first sales of a work.Everything that follows is, in fact, called secondary market.

In 2020, as you can see, the primary market in terms of USD volume is largely dominated by Superrare.The other marketplaces are left behind but the notable element remains that from world containment the USD volume has increased considerably over the year.

In terms of sales volume only, it is much more nuanced and other trends are emerging.What that means is that there have been a “more sales” number but the price of works that has increased since March 2020.The reason, some of us know her well: the increase in transaction costs in Ethereum.

To make Mint costs profitable, the price of works has therefore increased on all platforms ...

An element to take into account which is particularly important for the evaluation of an art of art never sold: it is the sale price which will determine its value.This can be determined by the artist or in the case of an auction, the final price.

The secondary market

Coming to sell a work as an artist is one thing, succeeding in reselling it as a collector is another.This is where other criteria come into account:

And even if the artist can promote what's going on on this market, it is especially the collectors of the early hours that will make him live ... or not.

Superrare has always been a leader at all levels of the different marketplaces but it is interesting to see that for a time, his leadership was disrupted by Asyncart and Markerplace… until the start of the 2020 school year.

The other marketplaces offering more affordable prices to buy works, their secondary market has been able to develop until the costs become too important for this to become really profitable for collectors.

How to determine the value of an NFT?

You will understand, the secondary market of NFTS is very different from that of cryptos after an ICO.This does not only require a technical or fundamental analysis before investing but also trade skills so as to manage to sell your assets.

It is therefore important to keep in mind that:

The secondary market of NFT can be seen as a large decentralized flea market open to the whole world: you can have the chance to find a rare pearl just like falling on a scam!Except that unlike a flea market that generally lasts a whole day and where it will be possible to return to see the seller to complain, once you have purchased your NFT, there is little chance thatThe seller buys it if you complain about the quality of your acquisition.

Even if the NFTS market currently seems to explode, remember that that of the cryptos has also experienced its boiling times.However, the NFTS constituting one of the most obvious means of spending the cryptos, it thus perfectly normal to see volumes which seem impressive at first.Stay curious but above all stay cautious and responsible in your purchases!