The $7.6M NFT

The world of NFTs has exploded in popularity, drawing in artists, collectors, and investors alike. For those new to NFTs, the story of CryptoPunk #7804 offers an inspiring glimpse into the potential profits in this digital frontier.

What Are CryptoPunks?

CryptoPunks are one of the earliest and most iconic NFT collections. Created by Larva Labs in 2017, they consist of 10,000 unique 24x24 pixel art characters. Each CryptoPunk is unique, with some being rarer and more valuable than others.

The Star of the Show: CryptoPunk #7804

Among the 10,000 CryptoPunks, #7804 stands out due to its exceptional rarity and unique attributes:

• Alien type: One of only 9 aliens in the entire collection.

• Accessories: Features a pipe, small shades, and a cap forward.

The Journey to Millions

• Initial Purchase: Back in 2017, Larva Labs distributed CryptoPunks for free to anyone with an Ethereum wallet. CryptoPunk #7804 was initially claimed for free.

• Historic Sale: Fast forward to March 2021, CryptoPunk #7804 sold for an astonishing 4200 ETH, equivalent to approximately $7.6 million at the time of sale.

Why Did It Sell for So Much?

1. Rarity: The alien type is one of the rarest attributes in the CryptoPunk collection.

2. Historical Significance: As one of the first NFT projects on Ethereum, CryptoPunks hold a pioneering status.

3. Market Boom: The NFT market saw explosive growth in 2021, driving up demand and prices.

4. Media Attention: The sale was widely covered by media, further boosting its visibility and value.

What Can Newbies Learn from This?

NFTs offer various opportunities for newcomers to benefit and potentially profit. Here's how:

1. Understanding the Basics

• Non-Fungible Tokens (NFTs) are unique digital assets stored on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are not interchangeable and each one has distinct characteristics and values.

2. Creating and Selling NFTs

• Artists and Creators: If you are a digital artist, musician, or content creator, you can mint your work as NFTs and sell them on platforms like OpenSea, Rarible, or Foundation. This provides a new revenue stream and the possibility of earning royalties on secondary sales.

3. Investing in NFTs

• Buy Low, Sell High: Research and buy NFTs that you believe will increase in value. Projects with strong communities, clear use cases, and unique attributes often perform well. Look for early-stage projects and upcoming artists.

• Holding: Some NFTs appreciate over time due to their rarity or the popularity of the creator. Holding onto these can lead to significant profits.

4. Participating in NFT Drops and Whitelists

• Exclusive Releases: Many artists and platforms have exclusive drops where limited-edition NFTs are released. Getting in early can lead to acquiring NFTs that can be sold for a profit later.

• Whitelisting: Being active in NFT communities and participating in whitelist opportunities can secure you rare mints before they become publicly available.

5. Exploring NFT Games and Metaverses

• Play-to-Earn Games: Games like Axie Infinity allow players to earn NFTs through gameplay, which can then be sold or traded. This merges entertainment with earning potential.

• Virtual Real Estate: Platforms like Decentraland and The Sandbox allow you to buy, sell, and develop virtual land as NFTs, offering unique investment opportunities.

6. Engaging with the Community

• Learn and Network: Join NFT communities on Discord, Twitter, and other social media platforms. Engaging with the community helps you stay informed about new projects, trends, and opportunities.

7. Utilizing NFT Utilities

• Beyond Art: NFTs can represent anything from virtual real estate to digital collectibles, event tickets, or even intellectual property. Explore the various utilities and find niches that interest you.

Example of Profiting from Rare Mints:

Suppose you are interested in a new NFT collection that is generating significant buzz. You join their Discord community and get whitelisted for early access to the mint. On minting day, you participate in the minting process and manage to secure a rare NFT from the collection. You verify its rarity using tools like Rarity Sniper and decide to hold it as the collection gains popularity.

Over time, as the project grows and gains more attention, the value of your rare NFT increases. You decide to list it on a marketplace like OpenSea, set a high fixed price, and promote it on social media. Eventually, a collector recognizes the value of your rare mint and purchases it at your asking price, netting you a significant profit.