Can NFTs be resold for millions of dollars?

NFTs (non-fungible tokens) selling for millions of dollars have attracted widespread attention and discussion recently. As a form of digital art, NFT has attracted the attention of many collectors and investors for its uniqueness and scarcity. However, many people have questions about the resaleability of NFT. After all, if you spend a huge amount to purchase an NFT, whether it can be resold in the future has become an important issue. In this article, php editor Banana will answer this question for you and help you better understand the operating mechanism of the NFT market.

However, in order to ensure the sustainable development of the market and prevent the NFT bubble from bursting, a healthy secondary market is essential. However, there are some problems that are difficult to judge in the current NFT market. For example, it's difficult to determine whether those expensive pieces of digital art are being resold for profit, or whether their value is declining. In order to solve these problems, we need more transparency and regulatory measures to ensure the stability and sustainable development of the NFT market.

The secondary market for NFT art is growing rapidly, explained Richard Chen, a partner at crypto investment firm 1Confirmation and founder of data tracking website Crypto Art. However, this growth tends to be centered around high-value artists, who enter the cryptocurrency space in droves.

Normally, the price of secondary sales is higher than that of primary sales. Especially for blue-chip artists like Pak, Hackatal, XCOPY, etc., their works command higher prices on the secondary market as reserve prices continue to rise. In this case, it is possible for investors to obtain higher returns by purchasing works on primary sale and selling them on secondary sale in the future.

He added: "But in terms of long-term orders, it only accounts for 99% of other artists, which is slightly higher than major artists."

Flipping NFT

Although there are many NFT works involve the largest crypto art sales, but not all works can be successfully sold or auctioned. However, an XCOPY work called Reflection was successfully sold for $98,500 two weeks ago. Yesterday, the piece was resold for $872,500 to an art collector named “4156.” This collector has been collecting XCOPY works for a long time.

Chen acknowledged that there are signs of an NFT bubble with some of the larger consumer NFT projects, such as the basketball trading card collectible NBA Top Shot or the art project Hashmasks, noting that much of the enthusiasm is waning. However, he believes the real value lies in creators who are fully committed to the crypto space and constantly trying to innovate.

I think smart collectors have realized that these NFTs of famous musicians and athletes will become valuable in the long run. Only those who truly understand NFT will come back to do more work.

He gave an example of DJ Justin Blau named 3LAU. He started playing NFTs in the second half of last year and sold NFTs for hundreds of dollars last year. On March 28, 3LAU sold a music album as an NFT for $11.6 million.

How the NFT secondary market develops

The secondary market for NFT is undoubtedly growing rapidly. According to Crypto Art, the size of the secondary market has increased dramatically over the past three months. In March, the secondary market of SuperRare, the second largest NFT marketplace, accounted for 36% of its NFT sales.

The secondary market is growing faster than the primary market, especially on SuperRare. "From a trend perspective, it seems likely that the secondary market will surpass the primary market if early collectors start reselling all the blue-chip stocks."

If the secondary market continues to grow, it can only do so by offering more Benefit the NFT ecosystem by increasing liquidity and encouraging more artists to participate. Chen said that currently, it is easier to resell collectible collectibles when there are large amounts of tokens because they are cheaper. But the larger the market, the greater the number of potential buyers for more expensive digital art.

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