The iconic image of a smirking Shiba Inu from Japan gave birth to the joke cryptocurrency Dogecoin, which boomed to as much as $95 billion earlier this year in a rally that captivated Wall Street. It also helped launch a wave of meme-inspired non-fungible tokens (NFTs), which are sold on decentralized exchanges and used like digital autographs to certify authenticity.
These NFTs are based on the Ethereum blockchain, which connects unique cryptographic strings to an online ledger that no one single computer can change or erase. They are also programmed to be scarce within their 10k collection. So, for example, a puppy from the “DogeX” NFT collection may be more desirable than other pups in its category because they are older or smaller.
Traders can speculate on NFTs by buying shares, or fractionalized tokens, of these unique pieces. They can then sell those shares for a profit or buy new ones to expand their collections. Some NFTs are even backed by real-world assets, such as physical artwork. For example, a Van Gogh painting could be worth millions because there is only one of the original piece that exists in the world.
The NFT market is currently going bananas. In a matter of weeks, total NFT volume has surged more than 10-fold to $3 billion on OpenSea. It’s become a feeding frenzy for investors who buy on social media hype and then see their tokens multiply in value and liquidity.
That’s why it’s important for investors to understand how the NFT market works. And it’s a good idea to keep up with the latest developments, which can often be difficult to discern from all the marketing and gimmickry.
For instance, NFTs that are programmed to look like dogs are now appearing on the Ethereum blockchain. And one developer has launched an NFT that actually comes with a real-world puppy. The company called Bullishly Bred offers its NFTs for sale using cryptocurrency. Once buyers confirm ownership, a flight nanny will arrange for the hand-delivery of the puppy to its new owner.
NFTs can be added to your MetaMask wallet so you can view your holdings and trade on decentralized exchanges. You can either copy the NFT contract address to add it manually or, if you have a MetaMask extension installed, do so with just one click on CoinGecko. If you don’t have a MetaMask account yet, you can create one by visiting the official site and following this step-by-step guide. dog nft