Why do some NFTs cost millions, while others cost nothing?

In order to sell an NFT for several million, it must have a certain value for the one who buys it. Therefore, if you simply create an NFT, even if it is very beautiful, the cost of your work will tend to zero. So how do 13-year-olds sell their collections for millions, and why can't you? And due to what NFT can have such a crazy cost? In order to answer this question, we need to dig into the very beginning of the NFT collection boom.

The most famous and expensive collection in the world right now is CryptoPunks. On average, one NFT from this collection costs approximately 75 ETH, which is equivalent to 190,000 thousand dollars. There are 10 thousand of them, and the weekly trading volume is $30 million. So why does simple pixel art that any artist can draw cost so much money? CryptoPunks are the history of the NFT world, they were the first of their kind and have come a long way in a few years, from a collection that cost nothing to the most expensive NFT collection. Back in 2017, no one could have imagined that the direction of digital art would unfold in such a way, it was like the birth of futurism or postmodernism in art. And you just remember what crazy money the first paintings in these directions cost. For example, a painting by Mark Rothko “Orange, Red, Yellow”. 1961, cost almost 87 million. Malevich's square, Danae Rembrandt works or Untitled from Mark Rothko. All these paintings have a history, that's why they cost such big money and CryptoPunks are only at the beginning of this journey. Each buyer of cryptopunks is not just buying pixels on the screen, he becomes a  part of new art history, digital art. It's like buying your first painting in Rembrandt, with the ability to sell it at any time for good money. Digital art has not passed the path of the classical and is unlikely to pass, but already now it has a number of advantages due to which, most likely, it will surpass its limit. This pushes us to the next value Status

NFT can be put on an avatar in any social network, many collections are made specifically for this. The owners get an excellent opportunity to show the whole world that they can afford to spend a large amount on an art object. Moreover, unlike classical art, NFT owners do not need to prove that the painting is original, just post a link to the original collection.It works like checkmarks on social networks. More of those collections like the Bored Ape Yacht Club organize private offline events, for owners of NFTs from this collection. NFT itself serves as an invitation to a private party, this allows people not only to show that they can afford it, but also to meet other crypto enthusiasts and possibly make useful contacts and collaborations. Entrance to such an event now costs about 91 ETH or 240 thousand dollars. But that's not all, many NFT collectors receive an offer from cryptocurrency-related projects and various bonuses from them. For example, the Sandbox project made collaboration and donated lands in its game to such crypto-collectors as https://twitter.com/pranksy https://twitter.com/_Urkann.

As in any other market, it cannot be without well-known buying and selling. NFT is no exception, of course. A huge part of the digital market consists of resellers and people who want to make a quick profit. This is where the well-known law of supply and demand begins to work, which increases the cost of any well-known NFT. Some speculators buy on platforms like OpenSea for one price and resell it with a surcharge. Others participate in official sales of limited collections (NFT sales) from the company for one price and resell for another. There are those who artificially inflate the price of this or that NFT. It's like a game of hot potatoes, whose own NFT  the last is the one who loses. However, if you attract such people to buy your NFT, its price will go to the moon. 

This is probably the most classic. The art market has evolved from physical to virtual objects. Now a canvas or sculpture is a picture on the Internet, new art connoisseurs no longer raise signs, but sit at home and click on the “place a bid” button. There are several main reasons why they sell for millions. The first is, of course, aesthetic pleasure, people look at the picture they bought and they get satisfaction from the fact that it is beautiful and belongs to them, everything is classic. The second is, of course, the storage of money and tax benefits. If the NFT is of high quality and has historical or practical value, it will only go up in price. This is a great way for investors to transfer or save their assets. Also, NFT is used in divorce, when dividing property, many crypto-geniuses sell physical property, I buy NFT for it, which cannot be divided because it is a unique object and there are still no laws on dividing cryptocurrencies in the world at this level. Therefore, NFT also serves as a way to preserve assets in a divorce.

Summing up, we can say that the myth that NFT is an easy money and a financial pyramid  can be dispelled. NFT is the same market as any other. Its value is also determined and supported by something. After all, any object is worth exactly as much as you are willing to pay for it.