PFP NFTs: A Beginner’s Guide
The brave new world of crypto collectibles has brought many players to the field. One of these is NFTs (short for non-fungible tokens)which are unique digital assets minted or bought and traded for on secondary markets. This guide will explain PFP NFTs and why they are increasing in popularity.
PFP NFTs: What are they?
A profile picture, or PFP for short, is a type of NFT that has grown in popularity. They are small works of art that you can see as a Twitter profile picture. Celebrities and influencers get attention for their big purchases. The first PFP NFT was CryptoPunks, which launched in 2017.
What is Metaverse?
This is where things start to get a little science fiction if this is the first you’ve heard of metaverse. The word combines “meta” (beyond) with “universe.” In practice, it is a cross term that refers to a place where The internet, augmented reality and virtual worlds are colliding.
As the metaverse gains traction, you won’t exclusively access the internet via your computer or smartphone; instead, you become immersed in it. Your workday will feel like you’re playing a video game. You will be able to look around the kitchen while shopping. Is this notion of the future becoming increasingly clear?
NFTs are the seeds that will help grow the metaverse. What appears to be a simple JPEG file could be the face of the next unicorn startup in this virtual space.
Why are PFP NFTs popular?
A profile picture, or PFP for short, is a type of NFT that has grown in popularity. They are small works of art that you can see as a Twitter profile picture. Celebrities and influencers get attention for their big purchases. The first PFP NFT was CryptoPunks, which was launched in 2017.
On the Ethereum blockchain, 10,000 unique avatars were generated and distributed for free. Because some features are rarer than others, these avatars were initially seen as collectibles. Blockchain evangelists started using them on social media, indicating that they had joined the crypto tribe.
Nowadays, it has become much more difficult to buy a CryptoPunk. The cost can range from six figures to millions of dollars, depending on the rarity of the item, if you can even find one. Actual, Visa recently paid $150,000 for one.
Don’t worry if you didn’t get into CryptoPunks. All is not lost as upcoming projects have copied the CryptoPunk approach.
Why would you want to own a PFP NFT?
This is where we should return to our earlier discussion of the metaverse. Many of the things we need in our physical world will also be needed in a virtual world. A CryptoPunk avatar, for example, is a fun way to flex in the metaverse. It’s the digital equivalent of a Lamborghini, a method of announcing your presence to everyone.
Of course, not everyone can afford to buy an exotic car. Not all people want one either. NFTs allow you to express yourself while belonging to a community that shares your values. And as they develop, the value of your NFT generally increases.
There is no better illustration of how a community drives NFT value than the Bored Ape Yacht Club (BAYC). The project used the CryptoPunks approach of creating 10,000 different avatars that served as membership to their club.
They then teamed up with Decentraland, a 3D virtual world running on Ethereum, to create a casino hangout. This was a groundbreaking occasion as these communities were no longer isolated on Discord and Zoom; instead, they met in the metaverse.
If it all sounds too good to be true, they also offered members the opportunity to claim an NFT dog, commonly known as the Bored Ape Kennel Club. This is similar to a membership dividend since the value of the dogs increased in line with BAYC’s value.
Collect PFP NFTs
The crypto space is driven by speculation, but it is important to understand that PFP NFTs are difficult to sell. They are analogous to physical art. It’s not something you can quickly sell if you need the money. Instead of looking for something to flip, find something that speaks to you and that you’ll enjoy using in your own unique ways.
