- According to experts heard by E-Investidor, this move is a trend that should gain more space, but also has a touch of speculation, as these assets tend to be valued over time – and recent months have shown that.
- When Bored Ape was launched in April 2021, each token in the collection was worth 0.08 ETH (about $ 248). Neymar paid 159.99 ETH considering only the BAYC # 6633 token, the valuation of the asset was 199,887.5%. In the case of BAYC # 5269, the Brazilian player paid 189.69 ETH, the accumulated value gain of less than one year was 237,012.5%.
- According to lawyer Dias Carneiro, before investing in NFTs, it is important to understand the characteristics of what is acquired and what rights are granted.
It is not new that NFT (fungal tokens, in Portuguese) have been successful, but the speed at which these digital assets have become internationally known is growing. In 2021, for example, the British Collings dictionary named NFT the word of the year. Although used for many purposes, this digital asset has become famous in the field of art, especially imagery.
Neymar Jr. Brazilian player. He was one of the few who recently invested heavily in NFTs. In this case, they were two pieces from the Bored Ape Yacht Club (BAYC) collection, one of the best known and most valuable in this market. The operation on the OpenSea NFTs marketplace platform costs ETH 349.68 (Ethereum), which is equivalent to $ 1.1 million.
BAYC is a kind of exclusive club with other internationally renowned members, including owners of valuable images of monkeys such as presenter Jimmy Fallon, singer Justin Bieber and rapper Eminem. According to the collection’s OpenSea description, Bored Ape also doubles as a Yacht Club membership card, which “provides access to benefits for members only, the first being access to The Bathroom, a collaborative graffiti board.”
heard by experts E-Investor assess that this move has a trend that should gain even more space, but also has a touch of speculation, as these assets tend to be valued over time – and the last few months have shown that.
“The price of these NFTs has gone up a lot because of this problem of exclusivity, because of the growing demand that celebrities buy. So it ends up creating pressure to raise the price, “said Alex Buelau, director of fintech crypto asset Parfin.
“In July 2021, they were selling for an average of $ 6,000 each. Now, the average is around $ 300,000. Neymar himself bought two for about a million dollars. So as an investment, the results speak for themselves. It was a great investment for those who bought it, ”said Buelau.
When Bored Ape was launched in April 2021, each token in the collection was worth 0.08 ETH (about $ 248). Neymar paid 159.99 ETH considering only the BAYC # 6633 token, the valuation of the asset was 199,887.5%. In the case of BAYC # 5269, the Brazilian player paid 189.69 ETH, with a cumulative value gain of less than a year of 237,012.5%.
Marketing is part of outreach
Just as a rare painting gains historical, cultural, and, of course, financial value over time, it is expected that in an increasingly digital world, the same will happen with NFT. In this scenario, the auction and the famous technologies become blockchain technology networks, the same as those used in cryptocurrencies, such as bitcoin and ethereum.
That is why, at this early stage, the pioneers of this new world of the arts believe that, to some extent, they are buying the future Picasso, Kahlo, Monet, Dalí, and so on. In terms of works value, operations are already approaching. In May last year, a painting by the Spanish painter Pablo Picasso entitled “Woman Sitting by a Window” was sold at auction at Christie’s in New York for $ 103.4 million. The most expensive NFT sale to date was a collage by graphic designer Mike Winkelmann, known as Beeple, for more than $ 69 million in March 2021.
However, as this market is still in its infancy and a large part of the population is unfamiliar with it, this audience of famous stakeholders would be the result of marketing strategies, according to sources heard in the report.
“Popular NFT collections like Crypto Punks or BAYC (Bored Apes Yacht Club) are a sign of status and membership in a select group, as if it were a ticket to an exclusive party,” compared Alexandre Ludolf, investment manager. By QR Asset Management.
The movements of big celebrities such as football and NBA players, including rap, including the use of Token images in their profile photos on social media, have given great visibility to the NFT phenomenon, which goes beyond images. Ludol.
“This global phenomenon has a good marketing strategy, with companies that have created the most prestigious collections donating NFTs to celebrities. But it is very important to understand that the world of NFT is much bigger than the pixelated images that so many people were interested in this market, ”said the director of QR Asset.
Among the options offered by decentralized technologies, such as blockchain, whose smart contracts make NFTs possible, Ludolf shows that artists would have access to a global market with a much lower commission.
“Traditional art galleries typically charge a 50% commission on the marketing of lesser-known artists, and NFT-focused markets such as OpenSea and Rarible are a way for artists to have a much greater reach and therefore pay less,” he says. Ludolf noted that in addition to the image and meme market, NFTs are already used as a solution in healthcare, music, streaming, and other sectors.
What are the risks and precautions?
Marco Jardim, the director of blockchain technology at crypto fintech Investtools, compares it to a certificate that guarantees ownership of that single NFT file, such as an image in JPG format, to a person.
“You can see the blockchain as a digital record, and it contains certificates that you have a right to do so, including artwork,” says Jardim.
Although the image of the monkey can be copied and printed on T-shirts, as with famous paintings, with the image of Mona Lisa, for example, only the holder of this “certificate” will have the rights to the archive, which is the owner of the most iconic painting. By Leonardo DaVinci.
Vanessa Pareja Lerner, a partner at Dias Carneiro Advogados, points out that NFTs are various intellectual assets that accurately identify their origins and traceability, as they are stored in blockchain (cryptocurrency) technology. “It would be like having a painting, and in reference to that we are almost completely sure of the moment of its creation and of its entire chain of transmission until it reaches you,” says Lerner.
According to lawyer Dias Carneiro, before investing in NFTs, it is important to understand the characteristics of what is acquired and what rights are granted.
“For example, does NFT’s hosted blockchain easily support the liquidity of this asset? Should I buy a single, original work or a limited series (such as an album collection edition)? it allows the use of the work in some way, or is just an element of the collection, like the painting you buy to show, but you have no intellectual property rights, ”Lerner listed.
These precautions help investors avoid headaches, including part of the tax, and help them take advantage of the real potential for profit with this market, always taking into account, of course, the inherent risks, like any speculative asset.