Fungible- means interchangeable; these are items or goods without losing its value is referred to as fungibility.

This NFT
that can be exchanged because they are effectively identical is one of the unique trading cards.
and carry the same value. In the world of digital currency, the value of one Bitcoin is
•Prime example of a fungible asset is money or currency, a similar to that of the other one. But same is not the case for
500-peso bill will always be a 500 peso bill whether it is five non-fungible tokens. In this case, the value of the NFT token
100 peso bill or ten 50 pesos bill, they still have the same will be different from a similar token. Each token has its own
worth. unique characteristics and the assets of the real world, such as
Non-Fungible - is something that is not interchangeable or the rare stones, artworks, and the luxury products of the
even divisible, something that is unique and can't be replaced. collector.
•Assets like diamonds, land, or baseball cards are not fungible PROPERTIES OF NFT (UIAPP)
because each unit has unique qualities that add or subtract Uniqueness
value. For instance, because individual diamonds have •It can be challenging to check the originality of the assets
different cuts, colors, sizes, and grades, they are not online, in consideration of how it is easily to copy and paste
interchangeable, so they cannot be referred to as fungible texts, artworks, images and many other assets in digital form.
goods. It is more challenging to artists, companies, and producers of
Token- a thing serving as a visible or tangible representation contents to utilize digital sphere. This where the NFTs comes
of a fact, quality, feeling, etc. in.
- is nothing more than the digital representation of an asset, •NFTs are unique, unlike the fungible assets. The blockchain
which can be anything, as long as it has recognizable and can secure artworks originality if the artworks are turned into
certifiable properties. A digital asset can be any digital an NFT
document, sound content, image, etc. that is transported in a •It is the NFT that gives the artists’ artworks originality or
digital format. In the world of blockchain technology, a token uniqueness.
is a virtual token whose value is issued by an organization. •Take Bored Ape #7990 from the Bored Ape Yacht Club
- a token is an object with a certain value only within a (BAYC), for example. This artwork can easily be copy-pasted
specific context. A token is an object that represents online. However, no matter how many visual copies exist, the
something else, such as another object (either physical or original version will always be defined through the metadata
virtual), or an abstract concept as, for example, a gift is of the NFT. Even if an impostor makes these visual copies
sometimes referred to as a token of the giver's esteem for the into NFTs, it can be determined which NFTs are the original
recipient. through the NFT’s code and provenance, which is the next
property we will discuss.
A non-fungible token (NFT) is a unique digital identifier that •Valued because of their rarity and uniqueness.
is recorded on a blockchain and is used to certify ownership Indivisibility
and authenticity. It cannot be copied, substituted, or •You can’t cut a vintage watch in half and expect to have it the
subdivided. The ownership of an NFT is recorded in the same worth as before. Just like the NFT, you have to transmit
blockchain and can be transferred by the owner, allowing the entire token to transfer NFT. The NFT cannot be divided
NFTs to be sold and traded. It grants object a particular right into smaller fractions.
recognizable as “Ownership”; in essence, “Certificate of •This implies that NFTs are not very liquid, but on a positive
Authenticity”. note, it strengthens ownership since the future owner can
-cryptographic tokens that are similar to the sense of make sure the NFT is still intact and verifiable before
cryptocurrency. NFTs are each unique and limited in quantity. purchasing the asset.
They are the key building blocks of a new blockchain- Authenticity
powered digital economy. NFTs are cryptographic tokens that •In the past, digital objects like artwork and photos made it
have a unique identifier to each unit that cannot be copied, difficult to determine origin or confirm authenticity. This was
substituted, and subdivided. These tokens are distinguished by all altered by NFTs. ( It was difficult back then to determine
their non-fungibility and non-interchangeability. and to confirm the authenticity of the artwork and photos.
-NFTs change the crypto paradigm by making each token one- This all changed when the NFT has begun)
of-a-kind and irreplaceable, making them non-fungible, •To review, the blockchain is an openly accessible ledger that
meaning that one token may be worth more than the others. is accessible to anybody worldwide. The primary means of
Due to the distinct and non-transferable ID, digital asset examining the past movements of an NFT is with blockchain
representations are equated with digital passports to scanners like Solscan, Etherscan, and Polygonscan. ( To
differentiate it from other tokens. review, blockchain was made to be accessible to everyone
-NFT is just like an artist creating a work of art for one person worldwide. Examining the past movements of NFT is with,
only. Person who buys it hold the right of ownership and the scanners like Etherscan, Polygonscan and Solscan.
ability to resell it and make profit. •It is costly to confirm the authenticity of an artwork, in terms
-NFT are equated with a digital passport to differentiate it of having a traditional art.
from other tokens, PASSPORT contains data of the owner, Portability
name, date of birth, and other biometrics. Just like NFT, it •NFTs are readily available and transportable. Similar to
contains information/data. cryptocurrencies, NFTs are portable and may be kept
accessible from devices like your computer or phone by
Fungibility in NFTs storing them in a digital wallet. ( They are transportable, as
The capacity of an asset to be exchanged for a similar item well as readily available. NFTs are portable and accessible to
computers or phone just like cryptocurrencies they can be with the artist earning a royalty each time. Some of the other
stored in a digital wallet. notable differences include:
•This is advantageous than having conventional physical  Storage: Traditional physical art requires storage
assets that you have to transfer. space. NFT art requires a digital file that’s stored
Programmability with blockchain technology.
•NFTs design can be modified, may add interface and new  Selling venues: Traditional art can be sold online, in
features with a variety of decentralized apps. Its one property, art galleries, and through auction houses. NFT art is
is that it can be programmed like software . sold online at NFT marketplaces.
•Their programmability allows NFTs to progress and adapt  Audience: NFT art can reach many potential buyers
and progress with the times, only being limited by the via the internet. Traditional art has a limited audience
imagination of the creator even though NFTs, as of writing are if it’s in a gallery or auction house.
often utilized for digital art.  Market volatility. NFT value is not purely
economic. The market for NFTs can depend on
How do NFTs work? things like social climate and relevancy.
Non-fungible tokens are types of Cryptographic assets that are Legal rights - Purchasing an NFT that represents another
kept on blockchain that are distributed in a public ledger. asset does not necessarily give you ownership of that
NFTs are separate from one another and they have a unique intellectual property (IP). For example, you can own an NFT
identification with each other.It is easy to confirm ownership of a video clip from a sports game. However, people can still
using this data and to transfer this tokens. download and share the original clip without infringing on
OpenSea, or Mintable are the platforms that are usually used your rights.
by the artists to upload their digital file and to generate a smart Ethical dilemmas - Plagiarism and art theft have led to artist
contract connect with it to, easily create NFT. With these complaints surrounding the NFT market. For example, after
portals, the potential purchasers can access and view NFTs. In digital artist Qing Han passed away in 2020, her art was stolen
terms of purchasing a NFT, it is required to have a and sold as NFTs against the wishes of her family.
cryptocurrency account, most preferably Ethereum, in which APPLICATIONS FOR NON-FUNGIBLE TOKENS
the author in return for the property being transferred receives (CVCMSF)
a transfer. there are many other sectors betting on this technology.
To produce NFTs, minting involves encrypting and recording Here are a few examples:
the blockchain of the asset's data. Moreover, the process of  Collections - Like trading cards, but in digital
minting has three steps: creation of new block, validation of format. In 2021, an NFT card of a LeBron James
NFT by a validator and closing of the block. Assigning dunk on the NBA Top Shot platform sold for
ownership is a common step in the minting process and using $208,000.
the smart contracts to control NFT transfers.  Videogames - NFTs can be used to represent assets
Special number that is connected to single blockchain address in video games, such as a terrain, a castle, or a
when tokens are created. The address where the tokens are virtual weapon, which are owned by the player.
kept are disclosed to the public together with the details of the  Music - Blockchain technology allows musicians to
ownership and every token has an owner. NFTs can be release their work as NFTs, in the form of limited
identified even if there are 5,000 NFTs because each NFT has editions for example, and thus monetize it. During
a unique identity. the pandemic, it has saved the income of many.
NFTs can be created on a variety of blockchains, albeit they
 Cinema - Although less common, in March the
may go by different names. For example, they are known as
short documentary Claude Lanzmann: Spectres of
Ordinals on the Bitcoin blockchain. A Bitcoin Ordinal can be
the Shoah became the first Oscar-nominated film (it
traded, sold, and bought just like Ethereum. The difference is
was in 2015) to be auctioned as NFT.
that Ordinals have serial numbers, to satoshis, identifiers and
 Sports- Famous athletes are using NFT to earn
smallest denomination of bitcoin while the Ethereum produce
more income from their image. NBA player Spencer
tokens.
Dinwiddie tokenized his contract so that others
What is NFT art?
could invest in him.
Non-fungible token (NFT) art refers to digital assets stored on
a blockchain that represent content or even physical items. Art  Fashion - Nike has a patent that allows an NFT to
mediums that NFTs can represent include digital drawings, be attached to physical products, such as a pair of
paintings, music, film, poetry, or books. NFT art allows artists trainers, and is called Crypto Kicks
to sell or rent their artwork beyond the physical world. An item sold through NFT should ideally have the following
NFT art is a digital asset that the buyer owns and can sell or features: (NFT Features: UAVIT)
trade on a blockchain platform. The sale of NFTs is a means - Uniqueness: NFTs are designed to represent a unique asset
of selling digital art without building an extensive social that cannot be duplicated or replicated.
network. Blockchain transactions take place on NFT - Authenticity: NFTs should have a verification process to
marketplaces, reducing the obstacles of self-promotion. ensure they are legitimate and created by the original creator
What’s the difference between NFTs and traditional art? or owner.
NFT art and traditional art vary in many ways. In some cases, - Value: NFTs should hold some kind of market value,
NFT art can be more profitable because the artist can set the whether from its rarity, popularity, or creativity.
commission percentage. Unlike traditional art, it can be resold
- Transferability: NFTs should be capable of being very concept of irreplaceability, so each type of token
transferred from one owner to another, with each transaction is awarded a separate smart contract, one per token.
being recorded on the blockchain for transparency.  ERC-998 is the standard by which tokens are created
- Interoperability: NFTs should be able to work with to own multiple other assets. On standard 721, it
different platforms, wallets, and marketplaces, making them takes three different tokens to own a nickname, a
easier to buy, sell, and trade. character, and its weapon. With the 998 standard,
What’s on sale as NFT? three different tokens are combined into one, and
Almost any digital asset can be sold as an NFT, including but ownership is inherited.
not limited to:  ERC-875 is used to send more than one collectible
 Digital artwork item per transfer.
 Photographs  ERC-1155 is a superstructure that is used to conduct
 Music tokens created through the other standards.
 Videos Conventionally, it is a “package” or “form” that can
 Memes contain other NFT tokens. Feature: one smart
 Sports collectibles contract for hundreds of types of NFT tokens. The
 Virtual real estate 1155 smart contract itself also allows non-NFT
 Decentralized applications (dApps) tokens to be stored.
 Gaming assets and items
Some notable examples of NFT sales include the Nyan Cat Using standardization, there are platforms in 2021 that allow
gif, the tweet by Twitter CEO Jack Dorsey, and the artwork by you to create your own NFT token without programming
Beeple that sold for a staggering $69 million. The NFT market skills.
is still in its early stages, and it remains to be seen what other Where Can You Create and Sell an NFT? (OFERM)
types of digital assets will be sold as NFTs in the future. There are several platforms where you can post digital art and
generate Non-Fungible Tokens (NFTs). Here are some of the
HOW ARE NFTS IMPLEMENTED? (CMLSR) most popular ones:
Non-Fungible Tokens (NFTs) are implemented through a 1. OpenSea: OpenSea is the world’s first and largest
process that involves several steps: marketplace for user-owned digital items. You can
1. Creation: The first step is to create a digital asset browse, create, buy, sell, and auction NFTs using
that you want to turn into an NFT. This could be any OpenSea.
form of digital content, such as artwork, music, or 2. Foundation: Foundation is a digital art platform
even a tweet. where art enthusiasts invite other artists to participate
2. Minting: The next step is to “mint” the in exhibitions and events. After being accepted into
NFT. Minting is the process of turning your digital the marketplace, invited artists can mint and sell their
asset into a token on the blockchain. This is done NFTs.
using a smart contract, a self-executing contract with 3. Rarible: Rarible is a decentralized NFT marketplace
the terms of the agreement directly written into code. where you can create, buy, and sell digital
3. Listing: Once the NFT is minted, it can be listed for collectibles.
sale on an NFT marketplace. There are many 4. Mintable: Mintable is an NFT marketplace that
different marketplaces available, each with its own allows you to create, manage, and sell your NFTs.
set of rules and fees. 5. Ethernity: Ethernity is a platform that offers limited
4. Selling: When someone decides to buy the NFT, they edition authenticated NFTs.
will pay the listed price and the NFT will be 6. NFT Art Generator: The NFT Art Generator creates
transferred to their digital wallet. The transaction is your NFT collection and stores it on blockchains like
recorded on the blockchain, providing proof of Ethereum or Solana
ownership.
5. Royalties: One of the unique aspects of NFTs is the Here are galleries to place your digital art: (KAM)
ability for the original creator to earn royalties every 1. KnownOrigin: a marketplace with its own ERC-721
time the NFT is resold. This is a major shift from token that allows you to prove ownership of a piece
traditional art sales, where the artist does not benefit of art.
from future sales. 2. ArtStation: ArtStation’s rise to prominence comes in
perfect timing with the growth of the video game
NFT tokens also come with risks and challenges, such as industry.
copyright issues and environmental concerns related to the 3. Museums: There are several museums that are
energy use of blockchain technologies, as such for NFT tokens boosting the scene of digital art, such as the Whitney
to circulate freely across different blockchains, some are Museum of American Art, ZKM Center for Art and
working towards standardizing their issuance. There were four Media, New Museum, Walker Art Center, Museum
NFT implementation standards in 2021. Each of them runs on of Modern Art and MoMA PS1, Institute of
the Ethereum blockchain, so the name of the standards starts Contemporary Art, Ars Electronica Center, and San
with ERC. Francisco Museum of Modern Art.
 ERC-721 is the first implementation of NFT on the
Ether (ETH) blockchain. It laid the foundation for the
There are also sites for launching your own NFT marketplace, photos he took for his Everydays series. The
for example, Pixura – Create your own Crypto-Collectible corresponding non-fungible token (NFT) was the
NFTs. This project contains templates to start any project to most expensive non-fungible token ever when it sold
trade NFT assets under the ERC-721 standard in a minute. for $69.3 million at Christie's in 2021.
Nyan Cat
CHARACTERISTICS OF NFTs (UIRAS)  Chris Torres, creator of the psychedelic meme Nyan
 Unique: Uniqueness is the most significant Cat, an animated flying cat with a pop tart body
characteristic of NFTs. Smart contracts associated leaving a rainbow trail. It is sold for 300.00 ETH
with every individual unit record permanent (about $590,000) in an online auction. The
identification information. It is like a certificate of cryptographic hash of the image was sold, marking
authenticity. his first experiment with nonfungible tokens (NFTs),
 Indivisible: NFTs cannot be divided into smaller which have gained popularity in digital art and earth-
units like cryptocurrencies. Each token represents a bound industries.
whole, unique item, maintaining its integrity. This Weird Whales
characteristic ensures the uniqueness and authenticity  Benyamin Ahmed has launched two NFT collections.
of the digital asset. His latest one is a series of pixelated pictures of
 Rare: NFTs are scarce assets. The scarcity and rarity whales with unique characteristics. He calls them
of an NFT define its value. Though developers could “Weird Whales” – think, a purple whale wearing a
create any amount of NFTs, they are often limited to cowboy hat and smoking a pipe. The avid teenage
ensure rarity. coder sells them in exchange for popular
 Authenticity: NFTs, as we know, are backed by cryptocurrency Ether. At the end of August, his
blockchain technology. This particular characteristic cryptocurrency wallet was worth $400,000.
of NFT helps increase their authenticity. A  Ahmed is not the only one to benefit from NFTs. The
distributed ledger called blockchain comprising unique digital assets have gone from being a fringe
details of NFTs, such as creation date and time is use case on the Bitcoin blockchain to capturing mass
made visible to the public. As a result, anybody markets, with NFT sales soaring 20-fold within a
buying that NFT can easily check its history, which year, from $13.7 million in the first half of 2020 to
increases transparency. $2.5 billion in the first half of this year.
 Scarcity: NFTs are deployed using smart contracts,
which provide each NFT with a unique digital WHAT MAKES AN NFT ART SO EXPENSIVE?
identity and special features. This separates each (UASHV)
NFT from the others and allows them to exist Uniqueness
independently. Scarcity is a factor that drives more One of the crucial factors in determining the value of an NFT
value to those digitally owned assets. art is its uniqueness. Unlike, traditional artwork which can be
reproduced, NFT art is impossible to duplicate. It is a one-of-
HYPE FOR ART a-kind which makes each piece of art unique and special. A
An NFT is a unit of data stored on a blockchain. The surge in NFT art which only has one copy would more likely be more
NFT popularity within the digital art auction sphere has expensive compared to a piece of art with many copies.
attracted considerable attention. This trend is a response to the Artist
challenges posed by the internet's capacity to replicate digital The worth of the NFT art is primarily influenced by who
content without honoring royalties, leading to a significant created it. Even if an artist's NFT art is only based on
shift toward NFTs as a solution. Non-Fungible Tokens, being speculation, it is likely to be more valuable if they have a large
distinct and non-interchangeable, address issues of digital audience or a reputation for creating high-quality work in the
ownership and authorship through blockchain technology. traditional or digital space. Collectors are ready to pay more
This uniqueness prevents fungibility, giving artists control for the prestige of possessing a work of art by a well-known
over token supply and offering promising financial prospects artist, and the artist's reputation gives authenticity to the
for creators in the future digital art landscape. artwork.
Mike Winkelmann better known as Beeple, a graphic Scarcity
designer, has sold his $69 million Everyday NFT, showcasing Although original NFT artwork is one-of-a-kind, the majority
the growing interest in digital art. NFTs, while not entirely of collections in the space have thousands of copies. A
digital, offer the advantage of owning a unique crypto token collection's value increases with its scarcity. An individual
that verifies purchase. This concept encourages artists to sell piece from an NFT collection with 10,000 pieces will typically
more of their work, increasing their value. However, cost less than one from a collection with 5,000 pieces. A work
environmental concerns may arise due to the mining and fuel of art gains value as it grows rarer. As a result, NFT art that is
required for building and calculating these blockchains. available in limited quantities will be more valuable than that
Despite some cultural value for art collectors and investors, which is not.
the author believes NFTs are not worth damaging the Historical significance
environment for the sake of "non-objects." A piece of art is most likely to be worth more if it is associated
Everydays: the First 5000 Days with a significant event or demonstrates an exceptional
 Is a digital artwork and it was produced by Mike cultural moment. The artwork’s historical significance
Winkelmann, a.k.a. Beeple. The piece is a collage enhances its rarity and distinctiveness, giving it a highly
made by Winkelmann from five thousand digital
valuable addition in any collection. CryptoPunks is the most A blockchain-based sneaker patent was made public by the
well-known example. sneaker empire in 2019. Nike continued to explore phygital
Visual Appeal experiences and later acquired NFT sneaker studio RTFKT
To some extent, the NFT art’s worth may depend on how Studios, which resulted in the introduction of Nike's metaverse
much the viewers find it visually appealing. Compared to less sneaker line. Buying one of these NFTs gives you a physical
appealing or generic artwork, NFT art that is visually striking pair of sneakers in as well as allowing you to wear your virtual
or aesthetically pleasing is likely to be more expensive. sneakers in the metaverse.
Collectors are more eager to pay a premium for more
outstanding pieces and are often dawn to visually captivating 3. Direct connection for artists
artwork. NFT art is a form of digital art, authenticated and owned by
using nonfungible token which radically changes the concept
CAN NFT ART BE REPRODUCED? of ownership in visual arts. Each NFT is distinct and has its
The digital file that a customer paid millions of dollars for can own characteristics and can't be swapped for another, due to
be downloaded and copied as many times as desired, but it is the uniqueness of information in it. The concept of ownership
not the same item. The ownership of the work is what NFTs in the art world is being transformed by NFTs. The artists can
are intended to provide you; it is something that cannot be prove their digital creations are unique and authentic by using
duplicated. The original artist still has the right to replication NFTs. NFTs provide a way of verifying the authenticity and
and copyright, just like with tangible artwork. However, once ownership of digital art, unlike traditional art forms, which can
you buy the NFT art, you’ll gain the ownership. easily be duplicated or copied. This ensures that every piece of
NFT art remains rare and invaluable.
KEY FUNCTIONS OF NFTS (SDDIN) By empowering artists to make a profit from their digital
1. Sophisticated form of basic encryption creations, NFTs have revolutionized the art world. Artists can
now express themselves and explore new concepts and styles
Non-fungible tokens (NFTs) are unique cryptographic tokens that were previously restricted by traditional media, thanks to
or digital assets that couldn’t be replicated and exist on a the diversity of the metaverse created by NFTs. This has
blockchain. In NFT, various encryption methods are employed provided an opportunity for undiscovered artists who might
to ensure the integrity and security of the digital assets of an not be able to gain access to galleries or the means of
individual. presenting their work. Artists can display their works on NFT
To protect one's unique digital assets, including music or marketplaces, making them available to a worldwide audience
artwork, NFT might be compared to an intricate, customized far beyond the conventional art markets. Without the need for
lock. Every NFT functions as a unique key that guarantees the intermediaries and galleries, artists have a direct way of
validity and authenticity of the digital content it represents and selling their unique digital assets to collectors. This creates
serves as a symbol of ownership. In essence, NFTs use a high- new opportunities for artists to generate income and to be
tech security layer that not only stops copying but also recognized for their work.
establishes a unique, verifiable connection between the owner
of the digital asset and its digital asset. This reflects NFTs' The NFTs have played an important role in fostering
function as a high-tech method of guaranteeing the community and interaction between artists and art enthusiasts.
authenticity and uniqueness of digital assets by elevating them NFTs allow artists to display their work on various platforms
from basic digital files to safe, tamper-resistant certificates of and interact with a wider audience by creating unique digital
ownership. assets. In the digital art community, this has given rise to
opportunities for collaboration, networking, and mentoring.
2. Digital physical asset representation Through social media platforms or specific NFT art markets,
NFTs are unique digital tokens that stand in for one-of-a-kind artists can reach out directly to collectors and fans. This sense
goods or resources. Although NFTs are primarily linked to the of connection aids in building relationships, supporting artistic
digital realm, they can also be connected to tangible assets growth, and creating an environment that nurtures creativity.
through tokenization, hence facilitating the integration of the In addition, it breaks geographical barriers that may have
virtual and physical worlds. Through this relationship, NFTs traditionally limited access to the art world, allowing artists to
can now be used for purposes outside of the digital world. gain recognition from a global audience.
Tokenization refers to the process of converting physical
assets or real-world assets such as artwork or real property
into digital tokens that people can buy, sell or transfer using 4. Identity management
blockchain technology. When an NFT represents a physical NFTs are well-known for their applications in digital art and
asset, the NFT serves as a proof of ownership for that physical the collectibles industries. Nonetheless, their unique qualities
asset. and traits can also be used in other fields, such as government
This relationship between NFTs and tangible assets has led to identity management. One example is the blockchain's ability
the emergence of innovative ideas such as "phygitals," which to store important papers like birth certificates.
combine the digital and tangible worlds to produce immersive Digital identity cards can also be issued by governments as
and interactive experiences and products for NFT holders. NFTs on a blockchain. These NFTs would serve as a
Imagine having an NFT of a limited-edition fashion item that representation of a person's identity and would include
can be used to unlock a physical replica of the item. Nike has validated personal data like name. address, biometric
acted in precisely this way. information, and image. This can lower identity fraud and
provide people more control over their personal information.
In addition, NFTs can be used as an authentication token or Standards serve to create a uniform set of rules that are being
digital signature that users can use to sign documents, access practiced or used in a context. It ensures that everyone
online services, and complete transactions safely. This feature operates in a compliant manner. It eliminates unnecessary
increases security and eliminates the need for conventional processes to be directed to what it is needed to do. NFTs are
login and password authentication. NFTs can be used by enrolled through common, reusable and inheritable standards
governments to safeguard documents and certifications, which in terms of basic features such as ownership, transfer and
may offer a quicker and more effective approach to confirm access control.
credentials and qualifications. Furthermore, health records like
vaccination status may be safely stored and shared using  ERC721- is a non-fungible token standard
NFTS, which may be very helpful in emergency situations. on the Ethereum blockchain. It provides a
People would be able to demonstrate their health status set of guidelines for creating unique tokens
without disclosing private medical information Travel that represent digital assets. These tokens
document and visas, ownership and property rights, and are non-fungible, meaning that they cannot
personal data management are other examples of such be exchanged on a one-to-one basis due to
applications for NFTs. their unique properties.

5. New investment concept  ERC-1155- is a token standard deployed on

A new investment concept is introduced by NFT which offers the Ethereum blockchain that enables the
new opportunities for investors and enthusiasts through creation of both fungible and non-fungible
fractional NFTs. These F-NFTs allow individuals to invest in tokens within a single smart contract,
a percentage of NFT rather than an entirety of it, making high- addressing the limitations of ERC-721 and
value assets more accessible to a broader audience. ERC-20 by mitigating high gas fees and
In real estate, investing is redefined by fractional NFTs with simplifying the representation of multiple
its new shared ownership model. High value real estate tokens.
investments can now be made possible by the pooling of
resources from several investors. This remarkable concept While ERC-1155 is a multi-token standard supporting
promotes real estate, facilitating more people to participate in fungible and non-fungible cryptocurrencies, ERC-20 tokens
profitable real estate investing. are entirely fungible, and ERC-721 tokens are non-fungible.

NON-FUNGIBLE TOKENS AND BLOCKCHAIN: SIX  Non-Etherum - This is called “lazy

KEY PROPERTIES minting” as it lets you create NFT and put it
A blockchain is a distributed database or ledger shared among for sale without being written to the
a computer network's nodes. They are best known for their blockchain.
crucial role in cryptocurrency systems for maintaining a
secure and decentralized record of transactions, but they are 2. INTEROPERABILITY
not limited to cryptocurrency uses. Blockchains can be used to refers to the basic ability of different computerized products or
make data in any industry immutable—the term used to systems to readily connect and exchange information with one
describe the inability to be altered. another, in either implementation or access, without
The Three Major Parts of a Blockchain are: restriction. NFT are interoperable, which means that they can
•Data – it consists all the information that happen in a be connected, exchanged, or traded over different platforms
transaction. that operate on the blockchain network. As NFTs are the
•Hash – it serves as the user identity. And, it is unique. decentralized game system that exists on independent
•Hash of Previous Block- it represents that a single blockchains, therefore they can act as the backend framework
transaction is connected in the blockchain. for other interconnected games.

3. TRADABILITY
it makes it possible for NFTs to be sold in markets throughout
ecosystems. NFTs can be purchased, traded, sold, and
auctioned.

4. LIQUIDITY
 the ease with which these digital assets
can be bought or sold in the market.
Unlike cryptocurrencies like Bitcoin
Blockchain NFTs (Non Fungible Tokens) are a very hot topic and Ethereum, NFTs are unique,
in the digital asset world. And while the craze over NFT making it challenging to establish a
collectibles has certainly brought a lot of attention to liquid market.
the digital asset space, the value proposition of the technology
 The speed and efficiency of blockchain-
is not all that clear. And so, in this lecture, we explore the
based marketplaces lead to a high level
definition and unique properties of NFTs. (SITLIPs)
of liquidity which describes how many
people are making trades within the
1. STANDARDIZATION
marketplace and how often.
  High level of liquidity means how items commonly employed to delineate the distinction between an
or digital assets are multiplying year by entity, dataset, or piece of information (referred to as the
year. It depends on the system or 'data') and its correlated descriptors and content attributes
blockchain, since digital assets are (referred to as the 'metadata').
multiplying year by year, There will be II. Conceptual Definition of NFT Metadata
more people or investors who will have NFT metadata provides essential information about the NFT
an interest. The more traders, the higher itself. It describes the NFT’s characteristics, properties, and
the liquidity. other relevant details.
5. IMMUTABILITY  Metadata includes:
 When we say something is immutable it o Name: The name of the NFT.
means that it can’t change. Immutability o Description: A brief description or
means that it’s easier to make changes summary.
with collusion. The central idea is the o Transaction History: Details of past
security of data and proof that data has transactions involving the NFT.
not been changed. o Visual or Auditory Assets: Links to
 Blockchain is configured as an images, videos, or other digital content
immutable database, and it is not possible associated with the NFT.
to manipulate the data already in the o Traits: Specific attributes or features unique
blockchain. to the NFT.
6. PROVABLE SCARCITY III. On-Chain Metadata
collectors value rarity and authenticity, and the scarcity of refers to the situation where the metadata associated with an
NFT purchases is provable through the immutable records NFT exists directly on the blockchain. In this context, the
embedded in an NFT’s underlying blockchain network. This metadata, encompassing both the foundational digital asset
distributed public ledger validates the number and uniqueness and its pertinent descriptor attributes, is inherently integrated
of each NFT as well as its ownership history. into the smart contract. This integration harnesses the inherent
immutability of blockchains, ensuring genuine asset
DIGITAL SCARCITY permanence. The inclusion of an asset within the original
 the idea that a digitally native asset can be smart contract not only guarantees its scarcity but also ensures
coded to have an immutably (permanently) its enduring existence, emphasizing the enduring nature of
limited supply. In the digital world, scarcity assets within the blockchain ecosystem. This ensures the
can be artificially created through persistence of the digital asset even in scenarios where, for
techniques such as limiting the total supply instance, the original website host or creator server becomes
of a digital asset, or by creating unique and inaccessible or is taken down.
non-fungible tokens (NFTs) that represent a IV. Off-Chain Metadata
one-of-a-kind asset. In cases where NFT metadata is located off-chain, the
 Without this feature, Bitcoin would be just metadata, comprising both the underlying digital asset and its
another currency or asset and wouldn't have associated descriptor attributes, is stored separately from the
inspired the creation of a cryptocurrency smart contract. This decentralization allows for greater
industry. flexibility and efficiency in managing metadata, as it is not
bound to the immutability constraints of the blockchain.
Non-Ethereum – Minting “just in time” at the moment of However, the off-chain approach may introduce
purchase is often called lazy minting, it lets you create an NFT considerations related to data availability and preservation, as
and put it up for sale without being written in the blockchain. the asset's existence is not inherently guaranteed by the smart
For example, even with NFT markets, there are deep rabbit contract, contrasting with the on-chain counterpart.
holes to go down, such as selling an NFT minted using V. On-Chain vs. Off-Chain
OpenSea on Rarible or programmatically building collections  On-Chain: All data and transactions are stored
like Bored Apes. directly on the blockchain, ensuring transparency and
immutability. However, this approach can lead to
However, there are alternatives to Ethereum’s blockchain. scalability challenges.
Rarible allows you to sell NFTs using a blockchain called  Off-Chain: Data is stored outside the blockchain,
Flow (the same one used by NBA Top Shot). and only relevant information or proofs are recorded
As you may expect, if there were no catches or drawbacks to on-chain. This helps scale solutions and reduces the
these low / no-fee blockchains, everyone would use them. At burden on the main blockchain.
the time of writing, using Flow on Rarible will limit you to VI. Data Hashing:
single edition NFTs (one-of-ones), and you will be unable to  On-Chain Hashes: Instead of storing full data, the
sell them through an auction. Furthermore, when using non- blockchain often stores the hash (digest) of the data.
Ethereum blockchains such as Flow or Polygon, individuals This hash serves as a reference, allowing secure and
cannot use Ethereum to purchase your NFTs (at least not efficient verification of off-chain data integrity.
without incurring additional fees).  Off-Chain Storage: The actual data resides off-
I. METADATA Defined chain, and its hash is stored on-chain. Anyone can
Metadata is generally recognized as information that furnishes verify the integrity of the off-chain data by
details about other data. In practical terms, this term is
 comparing it with the recorded hash on the standard way; instead, each person decides
blockchain. what value a product or item holds based on
their feelings and preferences.
VII. Off-Chain Storage Solutions:  For example:
 Centralized Services: Creators can use services There's a rare NFT trading card featuring a cute
like Amazon Web Service for off-chain storage. digital character that some people absolutely
 Decentralized Solutions: Options include love. For those who adore the character, the
the InterPlanetary File System (IPFS), which stores subjective value of that NFT card is high. They
metadata off the main blockchain while remaining might be willing to pay a significant amount to
decentralized, tamper-proof, and permanent
own this unique digital collectible.
VALUE – it rates or evaluates something according to a
On the flip side, if someone is not a fan of the
relative estimate of worth or desirability.
character or the artwork, they might not see the
OBJECTIVE - refers to information or statements that are
same value. The subjective value varies from
unbiased, impartial, and based on facts and observable
person to person based on their personal
phenomena.
preferences and feelings toward the digital
- Objective information is verifiable and can be
content.
supported by evidence and it is not influenced by
 One might see it as a masterpiece and be willing
personal feelings, interpretations, or opinions.
to pay a high price, while the other may not
SUBJECTIVE - relates to personal opinions, interpretations,
appreciate it as much and assign a lower value.
emotions, or perspectives that may vary from person to
B. Market Prices
person.
 are the actual numbers you see when you're
- The subjective value associated with specific works
looking to buy or sell something. These prices
of art may be due to personal sentiments or
are determined by a combination of factors,
emotions experienced only at an individual level.
including what people are willing to pay and
Anything that holds value based on one’s beliefs,
what sellers are willing to accept. So, the market
opinions, bias, personal decisions is known to be
price reflects the collective agreement on value.
Subjective.
 For instance:
Is the Value of NFT subjective or objective?
The market prices of the NFT trading cards
The value of NFTs (Non-Fungible Tokens) is generally
(subjective value example) depend on how much
considered subjective. While certain objective elements, such
people are willing to pay for them. If many
as blockchain technology and smart contracts, contribute to
individuals share a high subjective value for a
the functionality and verifiability of NFTs, the perceived value
particular card, the market price goes up. It's
of an NFT is largely influenced by subjective factors. These
like a digital version of a rare physical trading
subjective aspects include individual preferences, artistic or
card – the rarer and more in demand, the higher
cultural significance, personal taste, and prevailing market
the price it can command in the market.
trends.
Conversely, if there's less interest in a specific
- The subjective nature of NFT value is evident in the
NFT trading card, the market price may not be
diverse ways people assess and appreciate digital
as high. The market prices reflect the collective
assets. For example, one person may find significant
agreement among buyers and sellers on the
value in a specific digital artwork, while another may
perceived value of these digital collectibles.
not share the same appreciation. The cultural,
 The price of a rare collectible card might
artistic, and personal contexts in which NFTs exist
increase rapidly if many people want it, but it
contribute to the subjectivity of their value.
could drop if the demand decreases.
- It's important to note that the broader market
dynamics, including trends, celebrity endorsements,
The term marketplace has two possible meanings:
and social media attention, can also play a role in
MARKETPLACE
shaping the perceived value of NFTs. While
a. It is a physical place where people engage in
blockchain technology provides objective features
traditional buying, selling, or trading of tangible
like transparency and security, the overall value
products or goods.
assigned to an NFT is a complex interplay of both
 For example: supermarket, shopping malls, or
objective and subjective elements.
car dealership – where face-to-face transactions
Subjective Value and Market Prices
occur.
The correlation between subjective value and market prices is
one of the most imperceptible aspects of modern economics.  It can also be digital, including platforms such as
It is the correlation between subjective value and objective Amazon, eBay, Alibaba, and Shopify, enabling
monetary prices. online transactions.
A. Subjective Value b. It describes the collective existence of people who
share a desire to buy, sell, or exchange a specific
 is like a personal judgment about how much
type of product. It's not just a physical or digital
something is worth to us. It's not measured in a
 location; it signifies a community or group bound by have the opportunity to purchase and own this
the common interest in a particular product. This exclusive artwork.
sense of a market emerges when a product sparks 9. Enjin Marketplace – integrates NFTs into the gaming
desire and aligns with consumers' tastes and world. It allows gamers to buy, sell, and trade in-game
preferences. items and characters as NFTs, creating a digital economy
POPULAR MARKETPLACE within games.
1. OpenSea - a decentralized marketplace for buying and  Example: A gamer owns a rare in-game sword,
selling NFTs. It is a go-to platform for a wide range of tokenizes it as an NFT on Enjin Marketplace, and
digital assets, including art, collectibles, and virtual real sells it to another player.
estate. 10. Portion – an exclusive auction house for digital art. It
 Example: An artist creates a unique digital provides a platform for high-quality digital creations to
artwork and lists it on OpenSea. Collectors can be auctioned, allowing collectors to bid for ownership.
then purchase this digital artwork as an NFT.  Example: An artist puts up a unique digital
2. Rarible – a platform that allows artists to create, sell, artwork for auction on Portion, and interested
and buy NFTs without coding. It emphasizes user-friendly buyers participate in the bidding to acquire
creation and trade of digital assets. ownership.
 Example: An artist designs a digital illustration, A market is organized according to the following different
mints it as an NFT on Rarible, and offers it for approaches:
sale to interested buyers. A. FREE COMPETITION
3. SuperRare – a curated platform dedicated to rare digital  This happens when prices are determined by the
art. It focuses on limited edition and high-quality digital clash between what different companies offer
creations, fostering a community of digital art collectors. and what consumers prefer. It's like a
 Example: An artist produces an exclusive digital marketplace battle where companies compete,
art piece and releases it on SuperRare. and we, as consumers, get to choose from
Collectors can bid on or purchase this unique various offers.
artwork. Companies that create NFT Project
4. Foundation – a platform where creators use blockchain  VISXP
to tokenize their digital creations, turning them into  YUGA LABS
limited edition NFTs. It's a space for exclusive digital art.  MIRAI LABS
 Example: A digital artist creates a limited  Example: In the digital world, companies like
edition series of NFTs on Foundation and offers VISXP, YUGA LABS, and MIRAI LABS are creating
them for sale. Collectors acquire ownership of NFT projects. It's like a digital street where these
these exclusive digital pieces. companies compete to offer the most unique or
5. AtomicMarket – a decentralized exchange for various interesting NFTs, and we, the digital audience,
NFTs, spanning virtual real estate to in-game items. It get to choose the ones we like the most.
provides a marketplace for a diverse range of digital B. OLIGOPOLY
assets.  Occurs when the offer is made by a small
 Example: A gamer lists a rare in-game item on number of operators.
AtomicMarket as an NFT, and other gamers can  The biggest reason why oligopolies exist is
buy, sell, or trade these unique digital assets. collaboration. Firms see more economic benefits
6. Myth Market – a platform where creators turn mythical in collaborating on a specific price than in trying
digital creations into NFTs. It's a marketplace that brings to compete with their competitors. By
digital myths to life through blockchain technology. controlling prices, oligopolies can raise their
 Example: An artist designs a unique digital barriers to entry and protect themselves from
creature inspired by mythology and sells it as an new potential entrants into the market.
NFT on Myth Market.  Example: Technology Industry (Computers &
7. BakerySwap – a decentralized exchange that focuses on Smartphones)
NFTs with a tasty twist. It provides a platform for buying, The computer can be of any brand, but the
selling, and trading unique digital assets. operating system will be for sure from any of
 Example: An artist creates a series of digital Apple, Windows, and Linux Open Source. The
assets related to bakery themes and lists them same is the case for an operating system for
for sale on BakerySwap. smartphones where the majority market share
8. KnownOrigin – a digital art platform where artists is captured by Android & iOS. These companies
showcase and sell limited edition digital creations. It's a are coexisting without creating a threat to
space for high-quality and authenticated digital art. others.
 Example: An artist displays a limited edition C. MONOPOLY
digital painting on KnownOrigin, and collectors  it occurs when there is only one company or
entity that controls and sells a specific product
 or service, and there are no close substitutes or - The early days saw scams exploiting artists and
competitors. As a result, consumers have limited collectors unfamiliar with crypto. Instances of
or no choice but to accept the prices and terms unauthorized NFT sales of high-profile artists' works
set by the sole provider. occurred. However, as awareness grew, the
 Examples: Railways, Google perception shifted. Professional traders now view
The government provides public services like the NFTs as investments, with platforms like Twinci
railways. Hence, they are a monopolist because providing a secure space for NFT creation and trade.
new partners or privately held companies are Myth 3: NFTs are too volatile
not allowed to run railways. - NFT prices fluctuate due to market demand and
Google has become a household name and supply dynamics. Market demand and decreased
whenever we don’t know any answer, probably supply contribute to NFT value appreciation. The
googling is the answer. With their secret example of the Bored Ape Yacht Club demonstrates
algorithm, the biggest web searcher controls significant value growth over time.
more than 70% market share. Myth 4: NFTs are too expensive
- NFT prices vary, but on average, they align with
In addition, the company has grown into a web other cryptocurrencies, offering affordability
of services interlinked like maps, Gmail, search compared to traditional currencies. This
engines, etc. As a result, the company has left its misconception is debunked by recognizing the cost-
competitors – Yahoo and Microsoft- behind its effectiveness of acquiring NFTs in the crypto space.
innovation and technological advancement. Myth 5: NFTs are too complicated and hard to create
- NFT creation depends on the blockchain platform
D. MARKET TEST and developer preference. Ethereum, a popular
 A market test is the tool that companies use to choice, offers tools like NFT-Crowdfund, simplifying
identify the types of people who may be NFT creation without extensive programming
interested in a product that is about to be put knowledge. Understanding Ethereum basics is crucial
on the market. This test helps companies to for developers.
determine how much money people are willing Myth 6: NFTs don't bring value to the gaming industry
to spend to get their products. - Contrary to this belief, numerous games incorporate
 Different people are interested in different types NFTs, enhancing their value. Examples like Big Time,
of products, and some are willing to spend a Axie Infinity, and Chain Z Arena showcase how NFTs
certain amount on a specific type of product. are integral to play-to-earn gaming, providing
Nowadays, companies pay close attention to players with ownership of unique in-game assets.
what consumers want and try to give them PROBLEMS AND CONTROVERSIES
exactly that. I. Environmental
 Example: Software development - NFTs, or Non-Fungible Tokens, are digital versions of rare
In software development, a common example of assets that have created new opportunities for collectors and
test marketing is a beta test run. Beta testing, artists to earn income through selling, buying, or trading, like
also known as user acceptance testing (UAT) or cryptocurrency investments. The digital nature of NFTs
end-user testing, involves providing an early results in lower maintenance costs and increased asset
release product to a limited sample of the security, as they are managed through blockchain technology.
intended audience. This could potentially revolutionize how we collect rare items
C. NFT MYTHS in the future. However, like all technological advancements,
Non-Fungible Tokens (NFTs) have gained significant attention NFTs have their issues and shortcomings. One major concern
in recent years, but with their rise comes a multitude of is the environmental impact, as human activities often
myths that may cloud the understanding of these digital negatively affect the environment, causing deterioration.
assets. This report aims to debunk common misconceptions Do NFTs harm the environment?
surrounding NFTs, providing clarity on Ethereum transactions, - As an investor or crypto expert, you might know
addressing concerns about scams, dispelling notions of about NFTs and their environmental impact. While
volatility and costliness, and highlighting the value NFTs bring NFTs don't directly harm the environment, their
to the gaming industry. production process can affect our climate.
Myth 1: Ethereum has thousands of pending transactions
- Ethereum's transaction backlog is often How do NFTs really impact the environment?
misunderstood. Pending transactions are primarily a - NFTs themselves do not impact the environment,
result of insufficient transaction fees or but how they are minted can have substantial
dependencies on previous transactions from the environmental consequences. Here’s a look at how
same wallet. This indicates high network usage, NFTs are made:
showcasing Ethereum's popularity and growth. 1. First, the creator mints the NFT on a digital
Myth 2: NFTs are a scam marketplace, tokenizing it and storing it in the
blockchain.
 2. Next, the minted NFT is listed on the marketplace. preferences. Harris highlighted the technical challenges of
3. Finally, when the NFT is bought, a blockchain asset interoperability, using League of Legends and Valorant
transaction, either proof-of-work or proof-of-stake, as examples. Despite being from the same publisher, these
is initiated, which consumes significant energy games use different and incompatible technology pipelines
resources. for digital assets, making interoperability difficult.
NFT transactions can occur via two different blockchain III. Ethical
mechanisms: proof-of-work and proof-of-stake. It’s pretty difficult to use NFTs to make a living as an artist. On
In proof-of-work, miners compete to validate the transaction top of that, there is strong opposition from some of the art
and receive blockchain rewards. However, this process community on the Internet. It is a huge problem that arts and
consumes a significant amount of energy, emitting a NFT’s get just downloaded and sold without permission of the
substantial amount of original artists. In general, all buyers should beware and verify
carbon dioxide. with the real artists on their social media or contact them
- For example, a single NFT transaction on the Bitcoin directly before buying any of their work online. No one’s
platform emits approximately 748 kilograms of going to stop people from taking pictures on Twitter,
carbon dioxide. Instagram, ArtStation or other websites and selling them for
On the other hand, in proof-of-stake, only one validator is prints, on T-shirts, mugs, or cups and now also NFT’s.
responsible for the transaction, resulting in significantly lower Unfortunately, this is the reality of digitized art.
carbon emissions.
- For instance, a single NFT transaction on the 1. Money Laundering - NFTs, essentially digital works of
Ethereum platform emits around 0.02 kilograms of art, have the same characteristics as traditional art.
carbon dioxide. Consequently, in the art market, similar problems
with money laundering can be seen. Using a crypto
Can NFTs use less energy? wallet that does not require verification, criminals
Since the main impact of NFTs on the environment lies with can conceal their identity in the course of money
its energy consumption during the minting process. Here are laundering. They’ll be able to transfer a lot of money
some remedies on how NFTs can lessen the consumption of from one wallet to another anonymously. They can
energy. act instantly in the digital world, making it difficult
1. First, miners can opt to use renewable energy for law enforcement agencies to seize criminal assets
sources to power their machines during the minting and money, because they can be instantly
process, reducing carbon dioxide emissions. transferred from one digital wallet to another.
Additionally,
2. Investing a portion of the proceeds from NFT sales 2. Plagiarism – In the digital art world, NFT plagiarism is
into renewable energy projects can help offset the becoming more and more common. As artists
environmental impact. explore new ways to express themselves, they are
3. Funds can also be directed towards experimental also subject to having their work copied and sold.
technologies aimed at addressing climate change. Unfortunately, it is not easy to protect your work
4. Lastly, choosing to purchase NFTs minted on from this kind of plagiarism. In any case, it is
proof-of-stake blockchains, which consume less important to be aware of the potential risks. As
energy compared to proof-of-work, is a more more artists discover that their works are being
sustainable option. infringed and marketed on online markets, the
Where can we buy Energy-Efficient NFTs? debate about NFT plagiarism is growing.
1. Ethereum
2. Solana 3. Fraud - The nature and scale of NFT fraud is laid out
3. Algorand in the report NFTs and Financial Crime: Money
4. Cardano Laundering, Market Manipulation, Scams &
5. Tezos Sanctions Risks in Non-Fungible Tokens, published by
Elliptic, a London-based provider of crypto asset risk
II. Logistical management services to businesses worldwide. It
- Logistical issues relate to strategy or management says that NFT crimes represent “a small but notable”
problems. portion of overall non-NFT-related trading activity.
Example: The Muddled Metaverse - A case against NFT
interoperability in videogames authored by Todd Harris, CEO, Wash trading is when the buyer and seller in a transaction
Skillshot | CEO, Ghost Gaming | Chair, Atlanta Esports are the same person or two people cooperating. In traditional
Alliance | Chair, NASEF | Co-founder, Hi-Rez Studios (one of financial markets, it is prohibited because it misleads the rest
the leading video game publisher and developer in the US) of the market about real demand and distorts prices in order
In a 2022 article, Mr. Harris disputed the claim that NFTs or to induce others to engage in fraudulent transactions. Wash
"Web 3.0" will allow item interoperability across games trading is when the buyer and seller in a transaction are the
within a single metaverse. He argued this reflects a same person or two people cooperating. In conventional
misunderstanding of game development and gamer financial markets, it is prohibited because it misleads the rest
of the market about the true level of demand, distorts prices,
and encourages others to trade in fake information.
This activity has been illegal in many traditional markets in
the U.S. since the passage of the Commodity Exchange Act
(CEA) of 1936. But in unregulated crypto markets, particularly
with NFTs, the practice is still common. Chainalysis reports
that enforcement actions have not yet been brought against
Wash’s trading with NFT.
While wash trades are often hard to detect, there have been
notable examples of inflated NFT trades that were used to
manipulate market prices. On Oct. 28, 2021, CryptoPunk 9998
was traded between two wallets for 124,457 ether (ETH),
worth around $532 million at the time. The sale of the white-
haired, green-eyed, pixelated character was picked up by
CryptoPunks Bot, which automatically tracks and announces
CryptoPunks transactions on Twitter.

A rug pull is a scam in which a crypto or NFT developer

promotes a project to raise investor funds, only to shut it
down or disappear, taking the investor’s assets. There’s a
variation in this theme, such as when developers deliberately
inflate the price of a project and then abruptly sell it, leaving
the price to fall. The term is derived from the saying, “to pull
the rug out from under someone”, leaving them in a state of
confusion. Exit scams may also be referred to as rug pulling.
The rug pull can be performed with backdoors in the smart
contract of a project allowing developers to drain and
manipulate tokens that have been placed at stake or are
otherwise secured. Whatever the mechanic, the rug pull
quickly drives the price down to zero, leaving investors who
didn’t get out early with worthless tokens. Below are further
explanations of the various types of rug pulls.
These schemes take advantage of a lack of regulation in the
crypto space, misinformation, unethical sales techniques, and
investor FOMO (fear of missing out). The difference is that
pump and dump schemes usually operate within shorter
timeframes, focus on price action of low value tokens, and do
not require the involvement of token developers.