If 2020 was the year of decentralized finance (DeFi), 2021 will almost certainly be the year when we will see the explosion in the use and trading of NFTs, i.e. non-fungible tokens. NFTs have been around for a while now but have taken off during this latest bull run, thanks to several portals that allow for their creation and trading such as Rarible, OpenSea and highly anticipated upcoming projects such as SuperFarm and others. Today we are going to talk about a recently launched product designed for NFTs: NFTX.
What is NFTX
NFTX is an innovative platform that allows the creation of ERC20 tokens pegged to NFT tokens (a bit like wbtc and renbtc do with bitcoin, as they create an erc20 bitcoin pegged to the real bitcoin) and NFT indexes that contain several tokens in one place. Let’s see if we can understand it better! Basically, with NFTX we will be able to create or exchange NFT indexes of our choice, adding NFTs that we want and creating original collections like CryptoPunks, Axies, CryptoKitties and so on. But it doesn’t end there! Since these NFT collections or single NFTs can be exported in ERC20 version, all these NFTs will then be exchangeable on decentralized exchanges like the unstoppable Uniswap!
The usefulness of NFTX. For those who do not understand much about NFTs, it is enough to specify that these tokens are not using the ERC20 standard but the ERC-721 one and often it is more difficult to find them on etherscan or in your wallet. It is also impossible to exchange them on the various DEXs (and for this reason special exchanges are created, such as OpenSea). With NFTX this problem vanishes and the use of NFTs becomes easier even for less experienced users. Whereas in the second case, referring to NFT indexes, it will be possible to be exposed to different NFT investments without buying one by one. A bit like INDEXs in the stock exchange or crypto Index. It is sufficient to buy the desired index to have a small part of several NFTs.
Those who create these NFT funds are able to set different settings and parameters, such as Fee, incentives and so on. A great feature for NFT collectors and to facilitate the use of these non-fungible tokens (because let’s face it, NFTs at the moment are not for everyone…). The NFTX project also has its own token, which is named the same way.
The NFTX Token
The NFTX project is a DAO governed by the NFTX token. The maximum supply of the token is 650,000 units divided as follows:
- 10% for Founders with a vesting of as much as 5 years
- 30% for NFT contributions
- 30% for ETH contributions
- 10% to provide liquidity for NFTX
- 20% for farming.
The token holders will decide the fate of the project, proposing changes whenever they want. To pass though, a proposal must have at least 80% of the available votes in 24 hours. This is necessary to make proposals fast and avoid attacks on the system. There are plans to lower this threshold in the future, but at this early stage of the project it was really necessary.
Going back to the token, on CoinGecko we can see that the price at the moment is $185 per token, with a current marketcap of about 80 million (fully diluted 120 million). The lowest price was only 16 dollars on January 5th, 2021, while the highest price was touched yesterday, reaching $197 dollars. Since NFTs are the future of crypto, surely getting exposure to NFTX and other similar tokens is a great idea!