Who buys NFTs and why do they do it?

NFTs have gained popularity due to their unique characteristics. For artists and collectors, investors and gamers, NFTs are proving to be a universal way to own and use digital assets. With the potential to revolutionize industries such as the arts, gaming, and virtual real estate, NFTs are fast becoming a distinctive feature of the digital economics.

For this reason, NFTs are bought by speculators, gamers, celebrities, collectors, as well as ordinary people. What can be said in this respect?! The value of Yuga Labs, which created the Bored Ape Yacht Club (BAYC) collection, is about $4 billion!

Speculators

A speculator is a collective image that includes both professional investors and amateurs who do not understand really well the peculiarities of the industry. Often a speculator is a person who just read the news that someone made good money reselling NFTs and decided to buy something without thinking too much. But still, there are many professionals among speculators who consider NFTs on a par with shares, bonds, real estate and other assets that can bring good profits in the future.

An important reason why speculators are interested in NFTs is their potential to disrupt traditional industries. NFTs have the potential to revolutionize industries such as the arts, games, and virtual real estate, creating new opportunities for investors to profit. As the technology and use cases for NFTs continue to evolve, speculators see the potential for even more profits in the future.

Gamers

Gamers buy NFTs for a variety of reasons, but one of the main ones is to have a unique and one-of-a-kind object that can be used to enhance the gaming experience. These NFTs are in-game items such as weapons, armor, and others. They are used to gain an advantage in the game. Another reason gamers buy NFTs is to own a piece of digital history. Many NFTs are based on popular games, franchises, and characters, so owning an NFT is purely aesthetic. Gamers can also make money by buying NFTs and then reselling them at a higher price. Their difference from speculators is a high level of professionalism, because they often create NFTs themselves - either completely or as part of a team.

Another way gamers make money by buying NFTs is by participating in gaming tournaments or competitions where NFTs are awarded as prizes. These NFTs can then be traded for profit or used to enhance the gaming experience. This is especially relevant in our time in connection with the development of processes that contribute to the virtualization of the world and the transition of many spheres of life into the Metaverse.

Celebrities

Famous people including celebrities, athletes and influencers buy NFTs for a variety of reasons. One example is singer Grimes. In March 2021, she sold her digital art collection for over $6 million, becoming one of the top-selling NFT creators. Grimes' NFT collection included a wide variety of digital art, including 3D animation and digital paintings, which were sold to a wide range of buyers, including celebrities and investors.

In February 2022, NFT Doggies, developed by rapper Snoop Dogg in collaboration with The Sandbox, went on sale. This is a collection of 10,000 unique avatars that can be used in the blockchain-based metaverse. According to Snoop Dogg, he believes that the world is moving towards a future in which business will move into the Metaverse.

Another example is NBA Top Shot, a blockchain-based platform that allows fans to buy, sell and exchange officially licensed limited edition digital collectibles featuring their favorite players and events. Since its launch in October 2020, it has attracted a lot of attention and popularity, many famous NBA players such as Michael Jordan, LeBron James, Steph Curry and many more have created their own NFTs and sold them at high prices.

Long before the start of the event, the organizers of the 2022 FIFA World Cup in Qatar announced that they would be giving out NFTs to fans around the world. Visa, in collaboration with Crypto.com, introduced the Visa Masters of Movement program, one of the elements of which is the NFT auction.

Collectors

Well-known and wealthy collectors pay attention to NFTs as a new way to invest and potentially enrich themselves. One example is venture capitalist Mark Cuban. In March 2021, he purchased the artist Beeple's NFT artwork for $6 million, making it one of the most expensive NFTs ever sold.

Another example is the digital art collector Metacovan. In March 2021, Metacovan acquired artist Beeple's NFT for $69 million. Metacovan is the co-founder of Metapurse, a cryptocurrency investment fund that owns one of the largest collections of NFTs in the world.

Ordinary people

Ordinary people, as well as celebrities and collectors, buy NFTs for a variety of reasons. The main one is the hype of the industry and the amount of earnings. When a person sees that others have earned on the sale of virtual assets, they themselves want to join them. In this case, technical features and other aspects fade into the background.

Some still try to become the owners of virtual plots of land, assets in games, art objects in the first place in order to have passive income.

People of art

Artists, musicians, and composers in the arts industry are buying NFTs because they are drawn to the opportunity to monetize their work, verify authenticity and ownership, and create exciting new ways to engage with their audiences.

NFTs provide established Eminem-level creators and almost everyone with a new and innovative way to sell and monetize their work. For example, musicians can release songs as NFTs, giving fans the opportunity to own a piece of their favourite artist’s work, as well as giving the artist a new source of income. Crucially, NFTs provide a new way to authenticate and verify ownership of digital assets such as music, video, and other types of creative work. This is especially important for artists, musicians and composers who want to be sure that their work is used and sold legally and that they are properly compensated for it.

In addition, NFTs provide new and exciting opportunities to interact with the audience. For example, artists can use NFTs to create virtual galleries where fans interact with their work. Musicians can also use NFT to create new and unique experiences, such as exclusive concerts or fan meetings.

Among the real transactions of NFT purchase by representatives of the art industry, you can find a lot of examples:

• Artist and musician Steve Aoki is an active NFT buyer, especially in the music and gaming space. He has acquired numerous NFTs, in-game items, and digital collectibles.

• Musician and artist Akon is also actively buying NFTs, investing in virtual real estate, digital art and virtual experiences.

• Artist Zack Lieberman has acquired many NFTs, including digital art and virtual real estate.

• Musician DJ 3LAU is also actively buying NFTs, investing in virtual real estate and digital art.

Conclusions

NFTs have opened up a whole new world of possibilities for all sorts of people. Their growing popularity among a wide variety of groups of people testifies to the great potential of this industry.

From virtual concerts to virtual real estate, NFTs allow people to own a piece of something unique, something that can’t be replicated, and that’s something really special. The opportunity to own something unique, one of a kind and scarce has not only financial but also emotional value.

The NFT market is still relatively new and we still have a lot to discover, but one thing is clear: NFT is not just a new way to invest, but also an opportunity to be part of something new, exciting and emotional. NFTs have the power to bring people together, create new communities in Play and Earn and other industries, and provide new ways to express yourself in Web3. This is a new way to turn digital data into something tangible, and this is actually a great future!