Non-fungible tokens (NFTs) have become one of the most profitable sectors in the blockchain space. According to Reuters, NFT sales volume increased by $2.5 billion within the first half of 2021. In addition to that, it also surged $10.7 billion in the third quarter of this year. This further reiterates the fact that the NFT market is booming, and investors and creators are making huge profits from their non-fungible tokens.
However, the BitColors platform is seeking to explore an entirely different aspect of the NFT market. The platform wants to give its users the ability to own and trade colors in the form of non-fungible tokens. Just like what CryptoPunks did for early investors, those going in early on BitColors might be in for some massive return on investment. Is it time for people to forget about NFT avatars and focus on owning and trading NFT colors? Well, time will tell.
Non-Fungible Tokens Are Just Getting Started
In March this year, Beeple sold its NFT for a whopping $69.3 million. Ever since then, the NFT market has been booming. In 2020, the sales volume of the non-fungible token market was a mere $330 million compared to the $2.5 billion market surge within the first half of 2021. Since the market boom, investors have been spending millions of dollars on NFT collectibles like CryptoPunks, and creators and artists have been churning out new NFTs to meet the rising market demand.
With all these happenings in the NFT space, it is safe to assume that the market boom is only the beginning. However, many industry experts believe that the fire will eventually burn out with time. According to Charlie Lee of Litecoin, the value of most of the non-fungible tokens will eventually crash as the supply will exceed demand. He said, “The problem with NFTs is that they are non-finite tokens. There is zero cost to create an unlimited number of tokens.”
For a little clarification, non-fungible tokens are crypto assets used to represent tangible or intangible items, images, artworks, real estate, etc. All properties and ownership of NFTs are recorded on the blockchain.
BitColors Innovative Approach in The NFT Space
In every work of life, innovation rules the scenes. Talking about doing things out of the box, BitColors is currently looking past digital arts. The platform features a collection of about 1000 handcrafted NFT colors. In other words, they are creating a space where people can own and trade colors. The platform is introducing a new and innovative angle to the booming NFT market. As at the time of this writing, BitColors is the only project with such a model. Considering the massive ROI for early investors in the NFT market, early adopters of the BitColors project might enjoy the same fate.
In BitColors, every color is handcrafted and without any artificially predetermined trait. The users will have the freedom to decide the value of each color. One interesting thing about the BitColors project is that the team has limited the collection to a relatively small number of a thousand. With only 1000 NFT colors, the future value is likely to skyrocket due to scarcity.
Looking at the NFT market, there has been a proliferation of few successful projects like CryptoPunks and the likes. Aside from these few projects, the majority of others are just a copy and paste projects with nothing new to offer. They only depend on generated avatars, and Lee might be right in this regard. However, it might be a huge mistake to dismiss the entire NFT market because of these “copy and paste” projects.
With the current market movement and innovation, NFTs will be here for a very long time. The underlying blockchain that supports these NFTs has massive potential. There is every possibility that the NFT market will further expand beyond the things we already know. However, only projects with value will stand the test of time in the industry.