How to make money with Profile Pic Non-Fungible Tokens?
“Avatars” or “PFP NFTs” are special NFT collections that have become one of the most booming NFT trends. Are profile picture NFTs the future of online interaction or a bubble ready to burst?
What is profile pic NFTs?
Launched in 2017, Larva Labs’ CryptoPunks was among the first projects to leverage blockchain technology to enable ownership of digital items. 10,000 pixelated portraits of generative art characters comprising the collection were never marketed as social media avatars, but that naturally occurred toward the end of 2020. Rising CryptoPunk prices coincided with other NFT developments that brought greater mainstream attention to the sector. Now avatar NFTs are one of the most popular NFT investments.
The typical PFP NFT project is a collection of avatars, where each avatar has a combination of unique attributes. These attributes are randomly generated for each avatar, and, hence, these projects are generally categorized as "generative art". In simple words, avatar NFTs is the profile picture that you might use on Twitter or other social media sites.
Why do people buy PFP NFTs?
Rather than use any old photo or JPEG that you find on the Internet for your avatar, with an NFT, you can prove that you actually own this profile pic. Also, it shows that you actually cared enough to fork over some crypto coins to get the image.
Many people are proudly using their avatar NFTs as their profile picture and they are also following others that have avatars from the same project. Nowadays using high-value PFP NFTs means a certain level of status. It gives users access to a community or an exclusive club. Some people pay big to be a part of these clubs.
People who are paying about $500,000 for a picture certainly give off NFT bubble vibes. Yet, price bubbles often form around new technologies. Consider the early internet and the ups-and-downs of the cryptocurrency markets, for example.
Evidently, there is a lot of pure speculation going on in the PFP NFT market at the moment. However, something more profound may be occurring alongside it.
The substance behind the PFP NFTs hype
With such high valuations, even with the community aspect, it might be hard to believe that some of the profile pic NFTs can be worth so much. But “profile pic” is not a great description of some of these projects as they can be used in so many more ways.
First, as we wrote above, avatar NFTs can be digital status symbols. From a Rolex watch to a flashy car, humans use all manner of items to signify their status in the physical world. You have to be rich to own a Punk today. Second, it is all about communities NFTs give a strong sense of community. Many projects have embraced the idea of a PFP NFT serving as a sort of online club membership card. Third, some projects give you commercial rights (sometimes through full ownership or sometimes through a licensing agreement) to your particular NFT avatar. It means that you can sell T-shirts with your avatar or create derivative works, and so on because you are the owner of your avatar.
Fourth, people invest in metaverse avatars. Many PFP NFT projects have a much grander vision. Meebits, for example, are three-dimensional characters with a complete body, and these avatars can be used to explore virtual worlds like Decentraland or The Sandbox. These efforts are certainly promising.
As humanity increasingly moves into digital spaces, the importance of digital identities and status symbols will surely grow. So, some of the PFP NFT projects can indeed survive any significant market downturn. But if NFT investing seems too risky for you, you can put your money into a white-label NFT store or NFT marketplace. It's less risky than investing in avatar NFTs for sale on the secondary market. You don't need tech skills or knowledge to own an NFT marketplace because Exotic Technology removed the technical complexities associated with NFTs. The tech team made it simple for anybody to utilize, allowing NFT store owners to concentrate on more essential matters.