What are NFT Coins?

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In 2021, non-fungible tokens (NFTs) took the world by storm when individual NFTs from collections like CryptoPunks and Bored Ape Yacht Club started selling for hundreds of thousands and even millions of dollars. The same year, digital artists like Beeple and Pak sold 1:1 digital artwork for tens of millions of dollars — and suddenly the world was paying attention.

Since then, the NFT market has cooled down considerably. But an important Web3 question had been asked — Can digital assets have value? — and people responded with a resounding yes.

Today, blockchain technology and NFTs have entered the mainstream consciousness and begun to influence a range of industries including art, gaming, fashion, food and beverage, sports, and much more. As a result, entire ecosystems have sprung up around NFT collections and NFT-based metaverses. To do business in these ecosystems, the NFT coin was created.

If you’ve ever wondered about NFT coins, then you’ve come to the right place. In this article we’ll review NFT coins, list some of the top coins, and explain how users can purchase them. Let’s get started.

What is a non-fungible token?

To better understand NFT coins, it helps to review the difference between non-fungible tokens (NFTs) and cryptocurrencies.

Non-fungible tokens are unique digital assets that provide proof-of-ownership and live on blockchains like Ethereum and Solana. Like a piece of art in a gallery, they cannot be exchanged 1:1.

Cryptocurrencies are fungible digital assets that also exist on blockchains. Like the U.S. dollar and world currencies, cryptocurrencies can be traded 1:1 and nothing is lost or gained. This makes them suited as a medium for commercial transactions.

Okay, so what the heck are NFT coins?

Despite the name, NFT coins are not non-fungible tokens at all. Instead, NFT coins is a term for cryptocurrencies that can be used within an NFT-based ecosystem. You can think of them as the preferred token or tender within a virtual world, game, metaverse, or Web3 community.

NFTs coins can be traded on cryptocurrency exchanges and in some cases earned or won in blockchain-based games or metaverses. They can be used in a myriad of ways within the vast Web3 ecosystems that are sprouting up around NFTs.

Uses for NFT Coins

NFT coins can do a lot already, and given we are still in the early stages of Web3 development and metaverse expansion, much of what they can do is probably yet-to-be-seen. Some NFT coins grant holders governance rights, others can be used to purchase in-game items like a real estate plot in a metaverse, and many can be staked to reward the people who invest in the NFT ecosystem.

Perhaps because of their utility and the roles they play in many Web3 economies, NFT coins are becoming popular with NFT fans, collectors, and investors. Below are some reasons people hold NFT coins.

  • To speculate. Some people purchase NFT coins from NFT collections, metaverse projects, or Web3 studios that they think will rise in value over the short or long run. Usually investors purchase coins from a crypto exchange.
  • To get involved. For people who believe in a project and want to be more involved, purchasing NFT coins can grant voting privileges or other roles in governance and decision making.
  • To participate. For people who have land in metaverses like The Sandbox, owning the platform’s native NFT coin $MANA is useful for making purchases, and other functions. If you’re already participating in a Web3 or NFT ecosystem, holding the corresponding NFT coin has benefits.

NFT coins are showing up in finance, art, sports, games, and are being used as payment for NFT transactions. These native tokens support the growth of their respective NFT collections and metaverse projects, and usually the more popular their projects become the more the NFT coins grow in value.

Let’s take a look at some of the best-known NFT coins.

Top NFT Coins

These days, there are hundreds of NFT coins in existence powering a myriad of different Web3 platforms and metaverses. This can make it difficult to find the best coins. However, some coins support projects that have a proven track record of innovation and excellence.

Here are some of the top NFT coins:

  1. $AXS. Axie Infinity. This NFT coin powers Axie Infinity, the highest grossing NFT project of all time. Axie Infinity is a blockchain-based game with millions of users around the world. Players can mint and collect NFTs in the game, and the game uses play-to-earn dynamics, which lets players earn in the game’s NFT coin $AXS. Coin holders are also granted voting rights and other privileges.
  2. $MANA. Decentraland. This NFT coin is the native crypto of one of the most popular decentralized metaverses around: Decentraland. Decentraland is an Ethereum-based gaming metaverse that allows users to trade in-game assets, virtual real estate, and other digital collectibles. The NFT token is used primarily for making transactions on the Decentraland marketplace.
  3. $SAND. The Sandbox. Another NFT token from a widely popular Ethereum-based metaverse, $SAND is a utility token used to make payments in The Sandbox. The Sandbox lets users create and trade digital gaming assets with its token, and $SAND holders are given voting rights for governance proposals.
  4. $WAX. WAXP. The WAX blockchain launched in 2017 to facilitate quicker and more secure e-commerce transactions by using a delegated Proof-of-Stake (PoS) consensus mechanism. The WAXP NFT coin allows users to purchase NFTs, video games, and other digital collectibles using the token.
  5. $ApeCoin. APE. Launched in March of 2022 by ApeCoin DAO, this NFT coin is an ERC-20 token built on the Ethereum network and inspired by Yuga Labs’ BAYC project. It has a fixed supply of 1 billion and serves as a membership pass and governance token of the ApeCoin DAO, where holders can vote on the use of the Ecosystem Fund or make proposals. Ape Coin also grants access to certain areas of the Ape ecosystem and to games, events, merch, and other services.
  6. $XTZ. Tezos. A decentralized blockchain that secures sensitive and financially complicated smart contracts and governs itself by establishing a true digital commonwealth. Its unique governance mechanism allows token holders to upgrade all aspects of the platform, with no need for hard forks. $XTZ can be staked to earn holders a passive income.
  7. $TFUEL. Theta. The Theta network is a decentralized video delivery network that uses $TFUEL to operate on-chain operations like payments to relayers for sharing video. These relayers can earn the NFT coin when they relay video streams. Theta is an open source protocol that allows for DApps to be built vertically on the platform enabling music, TV and movies, education, esports, and more types of apps.
  8. $CHZ. Chiliz. This digital currency fuels the scalable, tokenized voting platform Socios.com, which lets fans execute voting rights with their favorite sports teams. They can also purchase branded Fan Tokens from renowned sports teams including FC Barcelona, Paris Saint-Germain, Juventus, and the UFC. $CHZ is an exclusive on-platform currency.
  9. $FLOW. Flow. The NFT token of the Flow blockchain was created by Dapper Labs, the studio behind CryptoKitties and NBA Top Shot, among others. The Flow network is decentralized, fast, developer-friendly, and designed for new apps, games, and digital assets. The $FLOW token powers the network, and the $FLOW token is viewed by many as both a payment method and a long-term reserve asset.

The bear market has sent many of these NFT coins plummeting to new lows, and it’s impossible to tell where prices might be in the future. If you’re considering purchasing NFT coins you should always do your own research and never invest money you can’t afford to lose.

How to buy NFT coins

The easiest way to buy NFT coins is to use a cryptocurrency exchange. Some of the most popular exchanges include Kraken, Coinbase, Binance, and Crypto.com.

First, you will have to create a crypto wallet on your preferred exchange and connect a debit or credit card. Then you can purchase NFT coins using the card. Some NFT coins can also be won or earned within games or NFT ecosystems.

Final Thoughts on NFT Coins

NFTs coins are still new phenomenon, so it’s difficult to predict how their prices might rise and fall in the future, or what coins will be around for the long run. Most coins depend on the success of the project that’s behind them, and if it is popular among users and fans. And even when projects are successful, the price of NFT coins can be volatile and unpredictable.

That said, for folks interested in NFTs, cryptocurrencies, and the metaverse, investing in NFT coins can be a good way to get involved in Web3 and to start to learn more about the space. Here are some more articles from Rarity Sniper related to NFTs and NFT coins.