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How To Sell Your NFTs For Cold Hard Cash

How To Sell Your NFTs For Cold Hard Cash

The Non-Fungible Token (NFT) industry can be traced back to the early days of the internet. The first NFTs were digital collectibles created on forums and message boards. These tokens were simply images or text used to represent a unique asset.

However, it wasn't until the development of blockchain technology that NFTs really began to take off. Blockchain provided a way to securely and permanently store data on a decentralized ledger. This made NFTs much more secure and trustworthy than traditional digital collectibles.

Since then, the NFT industry has exploded in popularity. Millions of dollars worth of NFTs have been sold, and the market is only getting bigger. With the help of blockchain, the NFT industry is revolutionizing the way we think about digital ownership.

This article discusses NFTs, including where they came from, important milestones, and what to expect in the future.

The Origin of NFTs

The first-ever known non-fungible token (NFT) was created in 2014 by Kevin McCoy and Anil Dash. It was called Quantum and consisted of a video clip of digital art created by McCoy’s wife, Jennifer. Originally, the technology was called “monetized graphics,” and Quantum was registered on the Namecoin blockchain and sold to Dash for $4. Today, it’s on sale for $7M.

In October of 2015, three months after the launch of the Ethereum blockchain, the first NFT project, Ehteria, was launched and demonstrated at DEVCON 1 in London. Most of the 457 NFTs went unsold for more than five years until March 13, 2021, as interest in NFTs was renewed. These remaining pieces sold out in 24 hours for a total of $1.4M. At the time of their launch in 2015, their cost was only $0.43 each.

Increased public awareness began in 2017 when an online game CryptoKitties monetized cat NFTs. During 2020, the value of the NFT market exploded, tripling to $250M. During the first quarter of 2021, more than $200M was spent on NFTs.

Or Was the Origin in 2012?

There is another origin story out there on NFTs worth discussing, known as Colored Coins. Colored Coins, created in 2012-2013, are made of small bitcoin denominations–known as a single satoshi–which can be used to represent a multitude of assets and have multiple uses, including:

  • Coupons
  • Property
  • Issue shares of a company
  • Ability to issue your own cryptocurrency
  • Digital collectibles
  • Access tokens

Unfortunately, the whole Colored Coin system carries several flaws. But, they played a significant role in laying the groundwork for NFTs. You can learn more about them here in the “Overview of Colored Coins.” 

Counterpoint: “Counterparty”

Another early consideration for the creation of NFTs is Counterparty. Counterparty is a peer-to-peer financial platform and distributed, open-source Internet protocol built on top of the Bitcoin blockchain. It allowed asset creation and even included a trading card game and meme trading, where Rare Pepes originated.

Rare Pepes

In October 2016, “rare pepes” were issued along the Counterparty platform. A rare pepe is a meme featuring a frog character that has developed an intense fanbase. Besides being incredibly quirky, the uniqueness of these images makes them such desirable NFTs. 

How the NFT space has evolved

In simple terms, an NFT is a unit of data stored on a variety of digital ledgers called a blockchain, which can be sold and traded. But, what started as a simple video clip has evolved into many use cases across various industries. But, perhaps none is more compelling than the art industry.

The History of NFT Art

Art is perhaps the most common way to use NFTs, as auctions from high-profile NFTs have made the biggest splash in public attention. Currently, the most expensive NFT ever sold was at an auction price of $91.8M–work by artist Pak, entitled The Merge.

The merge

The Merge is both a single piece of artwork and a series of artworks. When it launched, buyers could purchase an NFT, called a mass, for a set amount of money ($575). However, for buyers who purchased more than one mass, instead of receiving another NFT, their current mass actually increased in size. The price of a mass NFT grew throughout the sale, and buyers who bought a lot of mass were rewarded with free mass. 

It sounds a little confusing, but if you can picture a tiny ball of mercury as one mass, then add other tiny balls of mercury to it, you can see how each comes together to get bigger and bigger. That’s what The Merge is and was before the sale was brought to a close. Now, even though the launch is over, buyers and traders can still sell or trade their NFTs to grow their mass bigger, making their NFT more valuable. 

In the end, more than 28,000 buyers spent over $91M on what has been one of the most compelling NFT art concepts to date.

Everydays: The first 5000 days

The second most expensive (at $69M) was a piece of artwork by Michael Winkelmann–known as Beeple–called Everydays: the First 5000 Days.

Beeple is a graphic designer and motion artist from South Carolina who is well-renowned in the digital art world. However, his rise to fame reached a new height with his NFT collage created from 5,000 images created daily for 13 years. The images were put together and formed one NFT unit that sold for almost $70M making it the third-most-expensive piece of art ever sold.

CryptoPunks

Perhaps, the most well-known NFT digital art pieces are the collection of CryptoPunks, which is credited with starting the NFT craze of 2021.  

CryptoPunks is a series of 10,000 unique collectible characters stored on the Ethereum blockchain. Each character is created using an algorithm and no two are identical. The images are 24x24 pixels and feature some combination of guys, girls, apes, zombies, and aliens. While some of the images share attributes, the rarest ones feature the fewest attributes. For example, on the current marketplace, CryptoPunk 5822 is on sale by the owner for $34.89M. It features one attribute–a bandana–which is only shared by 481 punks. 

Perhaps the wildest part of CryptoPunks is that initially, they were all free. One simply had to claim them. Now they sell for hundreds of thousands to multi-millions of dollars.

CryptoKitties

In the 90s, we had Tomagotchi–a handheld digital pet that you could feed, love, and–if neglected–kill. In the 2020s, we have CryptoKitties! CryptoKitties are digitally created breedable and collectible cats. Each is one-of-a-kind and cannot be replicated, taken away, or destroyed.

It turns out that breeding digital pets is big business for at least a short period of time. While CryptoKitties was the first widely recognized blockchain game and featured astronomical growth, the popularity was short-lived. In fact, it reached its peak on December 10th, 2017. But, by the beginning of 2018, the game’s popularity fell by 90% of users. However, for those that were fortunate during that short time. One CryptoKitty fetched $1.3M, another $566,000, and the third most expensive CryptoKitty was sold for $107,000.

Bored Ape Yatch Club

Similar to CryptoPunks, Bored Ape Yacht Club (BAYC) is a collection of 10,000 unique, algorithm-created images. Except instead of aliens, zombies, and humans, BAYC features images of–you guessed it–apes. In March of 2022, sales of BAYC made up more than a third of total NFT sales. In January of 2022, BAYC surpassed $1B in total sales.

Who Can Create & Purchase NFTs?

The easy answer is that anyone can create or purchase NFTs. Some companies help guide you through the process of creation, connecting your content through blockchain, and getting the proper paperwork done to develop your own NFTs. Purchasing is also as easy as connecting with an online marketplace and working with vendors to purchase or acquire the NFTs you want.

You can launch your NFT collection in seconds with Mantial. We assist everyone, from entrepreneurs to celebrities and large companies throughout the whole process of conception, sales, and management of NFT collections.

In Conclusion

The future is wide-open for the NFT industry. As it becomes more and more popular, creators and even NFT experts are still exploring the possibilities of this technology and how it collides with our everyday lives. While the exact future of NFTs is uncertain, the market is expected to continue growing, and NFTs worth millions of dollars today could be worth billions in the future. 

And, when money like that is involved, everyone will want a piece of the action.

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The Walking Dead

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Rick’s NFT

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The Walking Dead

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Michonne’s NFT

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Key points:

  • NFTs are just like any physical possession. You can sell them for cash, trade them for something else, or even give them away.
  • NFTs can also be bought and sold outside of NFT marketplaces.
  • NFTs can also be sold to buyers that are not familiar with cryptocurrencies by offering incentives such as physical copies.
  • NFTs sold outside of NFT marketplaces can also provide aftermarket royalties and add credibility if handled properly. 

As NFTs explode onto the world market, there’s still at least one important barrier to access that’s holding the NFT market back from mass adoption. That is the fact that most people believe that NFTs can only be bought and sold using cryptocurrencies. However, the fact of the matter is that NFTs can also be sold for cold hard cash. 

There are a handful of NFT platforms out there presently offering the ability to buy and sell NFTs for cash, and many existing platforms are working on adding cash purchases to their applications. However, nothing is holding back NFT creators and owners from selling their tokens for cash outside of NFT marketplaces. 

How to sell an NFT for cash?

Can you sell an NFT for cash? The fact is that in terms of payment options NFTs are no different than any other possession. The value and form of payment for an NFT transaction are agreed upon by the buyer and the seller. The seller can take cash or a house or a bag of marbles or anything else in trade for their NFT.

One of the beautiful aspects of NFTs is that they are not platform-dependent. You can create your NFT on OpenSea or Rarible or some other NFT marketplace and then sell it on any platform that’s compatible with the blockchain on which it was minted. For example, you can mint your Ethereum NFT on OpenSea and then sell it on LooksRare. 

However, you don’t even need an NFT marketplace to sell an NFT. You can initiate a transaction outside of any NFT marketplace. 

Here’s how:

  1. Announce to your social media followers and fans that your NFTs can be bought for cash, check, PayPal, or any other form of payment you desire. 
  2. Negotiate a sale price directly with the buyer and have them send you the agreed-upon payment. 
  3. After you receive the payment you simply transfer the NFT to the buyer’s wallet. Done. 

(Keep in mind that there are gas fees involved in transferring an NFT. On the Ethereum blockchain, in particular, those gas fees can be high. If you’re on Ethereum, try to negotiate the fees into your price and then wait until gas fees are low to make the transfer. You can track ETH gas fees here.)

What about the wallet?

But what if the buyer doesn’t use crypto and doesn’t have a wallet? How do they take possession of the NFT? 

There are a couple of ways you handle this.

First, you could help them set up a crypto wallet on their mobile device, accept the payment, and then transfer the NFT to their newly installed wallet. If you practice the process a few times you should be able to set up a wallet in a couple of minutes. You can let the buyer set the username and password and explain to them that they need to store the secret recovery phrase in a safe place. 

The second option is to create a wallet beforehand and transfer the NFT into that wallet. Then, when you sell that NFT, you simply need to provide the buyer with the secret recovery phrase needed to install the wallet onto a device at any point in the future. If they’re concerned with security, they can transfer the item to a new wallet.

What about royalties?

If you’re hoping to earn royalties on aftermarket sales of your NFTs at any point in the future, and if you want your entire collection to be visible on NFT marketplaces such as OpenSea, then it would behoove you to also help the buyer set up a profile on the platform. 

Even if the buyer doesn’t list the item for resale it will show up as part of your collection and potential buyers can make offers. Just being available and visible to shoppers greatly increases the chances of a resale. Moreover, people will see that you’ve already sold some of your NFTs giving you more credibility.

Why people might pay cash for an NFT?

We recently posted an article about why people buy NFTs. The three categories of people who are most likely to buy NFTs are NFT flippers, art collectors, and investors. However, most NFT buyers are people who are already involved in crypto. 

What about people who aren’t into crypto? Whether someone walks off the street or contacts you via social media, you need to respond with some compelling reasons for them to buy your NFTs. 

1. Some people are just nice

The easiest type of buyer to convince to buy your NFTs are true fans. They might just buy your NFTs because they like you. They want to be a patron, support your career, and help you develop your art. And they are curious enough about NFTs to give it a shot. 

2. Offer something more tangible

If you’re a digital artist, you can also sweeten the deal by offering a high-resolution file of the image that’s suitable for printing and framing. You could even offer to take care of the printing and framing and shipping. But be sure to figure that cost into your selling price. Keep in mind that buyers that are just looking for something to hang on their wall don’t care whether or not they own an NFT. These people will require a physical copy of the work.

3. Offer buyers the NFT with the art

If you’re selling physical works of art, offering someone an accompanying NFT with the purchase of the art might even sweeten the deal for them — especially if they collect both physical and digital art, or are NFT curious. 

4. Add utility to your NFTs

You can also attach some form of usefulness to your NFTs. For example, you could offer NFT buyers free periodical airdrops of promotional NFTs or discounts on merchandise. Or you could offer access to presale whitelists for future NFTs so current holders have a shot at buying them before they become available to the public. 

NFT for Cold Hard Cash

How to explain to a buyer what they’re getting?

The most important factor in convincing someone who is not a crypto enthusiast to buy your NFTs is being able to adequately explain the concept of NFTs. 

Here are a few bullet points that you can memorize, or cut and paste, or reword to your liking:

  1. An NFT is essentially a digital certificate of authenticity and ownership. It’s similar to the title for a car or a deed to a house. The NFT is proof of ownership of the work of art.
  2. The “certificate” is encrypted and immutable. It can never be deleted or hacked. It will always be under the owner’s control and they can sell it or give it away at any time in the future or even pass it on to their heirs.
  3. Digital possessions are no different than physical possessions. The canvass and the paint of a priceless painting have no value. It’s the exclusive ownership of something with rarity that is in demand that gives it value.

Keep in mind that even after you explain NFTs, some people won’t get it. However, some will. And you’ll get better at explaining it in terms to which your buyers can relate.

Whether you’re an NFT artist looking for ways to expand your potential prospects or a physical artist looking for ways to incorporate NFTs into your business model, offering your followers the ability to purchase your NFTs for cash can open up new doors and expand your customer base.