- Ethereum-based Non-Fungible Tokens (NFTs) are gaining traction as a strong trend in the market. Especially useful for the digital art business, NFTs can be profitable tools for the artist and buyers of unique artworks. A trader has now managed to take advantage of the trend and make thousands of dollars in just 3 days.
Ethereum-based Non-Fungible Tokens (NFTs) are gaining traction as a strong trend in the market. Especially useful for the digital art business, NFTs can be profitable tools for the artist and buyers of unique artworks. A trader has now managed to take advantage of the trend and make thousands of dollars in just 3 days.
As reported by a member of the Ethereum Futures Fund Index NFTX team, a buyer bought one of the artworks in the Hashmasks collection for $ 130 and then resold it within 3 days for a price of more than $ 150,000 – about 100 ETH. The artwork is called “Trump” and it is one of the “living collectibles” that make up the Hashmasks collection. The picture below shows the artwork.
Taking advantage of scarcity of art with the Ethereum blockchain
Created by more than 70 artists worldwide, the collection consists of 16,384 digital portraits. As stated on the collection’s website, investors of the collection receive 10 Name Change tokens (NCT) for each day they hold artworks. These NCTs are the native tokens of the Hashmasks collection.
Their goal is to allow investors to choose a name for the token they invest in, upload it to the Ethereum blockchain, and receive a hash and two addresses as proof of its authenticity. This way, collectors can determine the name of the item and earn money from the rarity of the items. The Hashmasks website states:
This opens up a whole new dimension for collections where the value hierarchy of individual pieces of all collective art is highly influenced by consumers’ preferences.
Each piece in the collection earns investors around 3,660 NCTs a year.
Approximately 1,800 NCT is required to change the name of the collection item. These NCTs must be sent to the address of the artwork’s contract (NFT) on the Ethereum blockchain. The tokens are then “burned”.
The sale was made through the Open Sea digital marketplace. The track was purchased by an anonymous buyer known only as “westcoastbill”. The buyer has a high purchasing history and has several items in his personal Hashmask collection.
“Westcoastbill” may be accumulating Hashmasks pieces to get more NCTs and to be able to change the names of items more easily. In addition, the parts get a fixed name after the entire supply of NCT, which is removed for up to 10 years, has been burned. After that, they will become completely immutable items with a unique name registered on the Ethereum blockchain.
The Hashmasks collection is in high demand. Data from Open SEA shows that parts have been traded at an average price of 2,313 ETH with a trading volume of 5504.9 ETH since January 24, 2021, as shown in the graph below.