Welcome to NFT Craze 101
Non-fungible tokens, commonly referred to as NFTs, are the hottest thing in crypto right now. Upon hearing of the prices that NFT-based digital art sells for, many tend to feel perplexed. But, there are strong arguments behind the massive hype surrounding NFTs.
Just like physical art that we interact with on a daily basis, there’s space for digital artifacts with cultural significance. The key difference is that whilst in the physical realm, copycats are abundant, the digital market makes use of smartly-integrated blockchain technology to assure scarcity and authenticity. NFTs guarantee ownership, so you can rest assured that you’re the sole collector of unique pieces of digital art.
NFTs have been very successful until now, with well-known artists dropping their very own NFT collections. For instance, Grimes sold her unique NFTs[1] for over $6 million, whereas the Kings of Leon will be the world’s first band to sell their new album as a perk-loaded NFT on OpenSea[2]. The brand has announced that these tokens will provide special perks, like front-rowed seating at concerts or limited-edition vinyls for dedicated collectors.
The Wu-Tang Clan, Post Malone, and many other artists have joined in on the hype. Huge success has been attained so far, with people worldwide rushing to purchase unique artwork ‘signed’ by their favorite artists. However, it’s not only artists looking to drop future-shaping NFTs, but also crypto-exclusive projects such as CryptoKitties which have seen millions in revenue for the rarest kitty breeds.
Long story short, NFT ownership entails cultural reshaping as well as high profitability for collectors anywhere.
The Problem with Front-Running
The sheer value proposition behind NFTs places them in super high demand, so market mechanics lead to unfair front-running practices. Users that must get their hands on
