Antiques and unique items have always attracted collectors, but now NFT trading cards are added to this list. Are NFT trading cards collectible or an asset bubble?
Collectors have been known to earn huge profits selling collectibles such as baseball cards, stamps, vintage items, etc. In the age of digitization, people are moving towards the use of blockchain technology while acquiring these digital items.
These digital items are differentiated on several blockchain networks, as unique digital assets known as Non Fungible Tokens. Blockchain technology makes it authentic and its owners can easily be verified, which is vital in a world where scarcity of assets determines its value.
NFT version of a physical painting created by renowned street artist Banksy, which was destroyed on purpose, fetched nearly $400000. According to Anita Moore, CEO at Blind Boxes, an NFT platform for digital artwork, “By decentralizing the concepts of provenance and authenticity, NFTs are revolutionizing the way we think about ownership and value.”
What are NFT trading cards?
NFT trading cards are a virtual representation of their physical underlying assets represented by blockchain. This gives them unchangeable and public verification of ownership. This means even if the physical version is lost or destroyed. The NFT will continue to cope with and live on blockchain as long as the latter exists.
You can create a token on Ethereum or any smart contract blockchain to create a virtual representation of these cards. The tokens created are non-fungible and contain metadata of the cards, especially their image. You can store, view, and transfer NFT trading cards via NFT enabled wallet.
NFT trading cards As Investment
There is a considerable rise in the number of people involved in NFT trading cards. The NFT trading cards are now becoming an investment class and trading card sales have taken off.
There are a number of successful journeys in the NFT space, such as the price of mint condition cards on trading platform StockX jumped from $280 to an average of $775 a year ago. While the
Tom Brady’s card sold for $1.3 million on the platform recently, it is one of 100 from his rookie season.
There has been a trend shift as many traditional investors have started trading in risky asset classes like cryptocurrencies and blockchain companies.
However, you need to be cautious about the dangers of blindly following “hype train” a clear warning by Radek Zagórowicz, CEO at Hoard Exchange, a blockchain gaming platform.
Nick Rose, founder, and CEO of the NFT platform Ethernity Chain said,
It is clear that authenticated NFTs from actual real world sports and entertainment figures are the only real future for NFT collectibles. When we launch a drop with Tony Hawk, Muhammad Ali or the legendary footballer Pele – These are all authenticed, endorsed and backed by these people – thus creating an actual underlying value for them.”
NFT Trading Cards offer True Asset ownership and more
Even Though the trading and collectible card industry has been around for a long time, it is not easy to authenticate and preserve models for people who value their mint condition. Blockchain technology may provide a solution to these issues and change the dynamics of the collector market, as scarcity of mint condition cards is from where the value comes from.
NFT trading cards can bring you fortunes but they come with a high degree of risk attached to it. The traditional sports card and memorabilia market are valued at over $5.4 billion in 2020. While Dapper Labs is valued at $2.6 billion, having grossed around $230 million in sales as of the end of February.
Bitcoin and other cryptocurrencies and tokens have enabled people to have their own banks and own money. Now NFTs are doing the same for other asset classes with a broader scope. We are now using NFTs with utilities and not just digital art, soon we will be using it for staking, paying for goods, authentication, and loyalty rewards.