Selling your NFTs is not always a good idea. One alternative is to use them to secure an nft loan. Over 2021, the NFT market will be a significant part of the crypto industry. The total amount spent on NFTs has surpassed $12.6 billion. This is an increase of $162.4 million from the beginning of the year. Since then, the industry has grown 200x. According to the hype, Jack Dolsey of Twitter sold his first tweet for $2.9 million. The Merge, which was sold for $91.8m and Everyday for $69.3m were other high-end NFT sales. NFT sales are the new drug money in the digital economy. But the hype and the popular media don’t tell the whole story.
Selling NFTs: Problems
Selling your digital arts is not the best method to make money with NFTs. It is not as lucrative as it seems. OpenSea, which is the largest NFT marketplace, provided data. The statistical returns showed serious flaws in NFT sales. These problems are due to excessive fees and gross inequality.
The largest percentile of NFT sellers is 33.6%. They sell their NFTs at $100 or less. The 1.8% who make the least money are those who sell their NFTs at 0.5ETH. This is far below the recommended sell-price. The percentile of NFT market participants who make the highest income is negligible. This perspective shows that NFTs are not able to live up to their promises of decentralization, especially the promise of equal opportunity for artists to win big. NFT money is concentrated in the hands of very few people, much like the 10% of the global population that controls 85% of the wealth. Google also handles 92% of all internet searches.
The fee problem
The 33% of the money received is before any charges are applied. Things get worse when you add in the charges. The data showed that $100 earners can expect to pay 72.5%, or 157.5%, of their sales as fees. This is an average of 100.5% and leaves them with a deficit of $0.50 or more. Both the low-income earners and those in the top 1% are subject to these hefty charges. It is not an easy task to create an NFT. The gas fees to create an NFT are extremely high because most of them are bought, sold, and created using Ethereum. Raribleanalytics data estimates that a single NFT created on Ethereum will cost approximately $98.69, while NFT collections will cost you an average of $900.
The Best Alternative
NFTuloan, the main platform for NFT owners who wish to make money and provide nft liquidity on it, is where they can do this. NFTuloan’s automated market maker (AMM), will issue an ERC-721 token. This token details your share of total pool funds. To quickly liquidate your liquidity pool position, you can sell the NFT at any time or be used as nft collateral for loans etc.