Well, this is the question that everyone has in their mind. NFT being such a secure currency, is unable to make a record. It is just on an average scale. Why is it so? For this purpose, we need to understand NFT, why it is compared to ICO, and why it is not progressing like ICO?
NFT stands for Non Fungible Tokens in crypto. It is a very interesting term. Everything in crypto is equal to something. A bitcoin may be equal to some parts of dollars. A bitcoin is equal to a bitcoin as well. If a bitcoin equals 10 dollars, a person with 10 dollars can exchange his money with a bitcoin. It means that this person knew the exact value of the bitcoin that he was investing in.
Well, such is not the case in NFT. It is nonfungible. Its price can is valued. It is a normal currency, especially for digital art. For example, if a painter wants to sell his masterpiece. He will convert it into a digital form and sell it to the customer for some NFTs. But in this case, the owner determines the value of NFT. That value is not predictable. That’s totally on the personal choice of the owner
This is the thing that makes NFT special because one NFT is not even equal to another NFT. It is just like a bag of coins in which every coin has the same name but a different value.
Why It Got Popular?
NFT gained popularity on a large scale because of its unique features. It is completely safe. As to mention the above example. It represents the ownership of a thing. If an artist sells his digitalized masterpiece to a customer, he will give all the 50% of the copyrights to the customer.
Moreover, the artist will give his original one-piece work to the customer. He cannot just make more copies of his work and sell it to other clients. Similarly, 50% of the copyrights are with the artist. He would still receive the royalty every time his customer sells his work to some other customer.
Comparison With ICO
ICO stands for initial coin offering, and ICO and NFT are both the dealing pathways in cryptocurrency. Digging in the history of ICO, the ICO also gained much hype in the crypto world once. ICO made it easy for everyone to access this platform and start their startups. As a result, many people started to join this platform and generated their coins. But they didn’t know much about the complexity of this platform.
These people converting towards crypto made ICO blow, but suddenly, it also crashed the stock market after some time. It was because more than 70% of the companies came out to be nothing but just scams. People’s investments were robbed. This point was the downfall of the ICO.
They were now coming towards NFT. NFT is also attracting the masses towards itself to join the crypto world. NFT may be different from ICO in working, but the outcomes are almost the same.
Why is NFT Not Progressing Like ICO?
Now people are frequently asking questions because they know that the NFT is similar to ICO. According to this statement, the NFT should be hyped, but it didn’t happen. This was because the people were afraid of their experience. They are scared before investing money because they think that it might come out as a scam.
The people who are investing money are taking a very big risk. They don’t know that whether they will gain profit or loss from it. That’s why they are investing very small amounts in NFT. And this is the main reason why NFT is not making waves like ICO.