An NFT, or non-fungible token, represents ownership of something digital that can’t be copied one-to-one like a coin or token. Each NFT is unique and verifiable on-chain.
NFTs are commonly used for digital art, collectibles, in-game items, or access rights. Ownership is public and transferable, even if the underlying image or content can be viewed by anyone.
NFTs introduce digital scarcity and ownership into the internet economy. Value comes from uniqueness, demand, and cultural relevance, not from cash flows.
At the same time, NFTs carry high risk. Prices are heavily influenced by market sentiment, liquidity, and attention cycles rather than fundamentals.
NFTs are typically evaluated by:
- Collection size and supply mechanics
- Trading volume and liquidity on marketplaces
- Floor price relative to past demand
- Creator reputation and community strength
Prices can change quickly when sentiment shifts.
A common mistake is assuming scarcity guarantees value. Limited supply does not ensure long-term demand.
Another error is ignoring liquidity. NFTs can be easy to buy but hard to sell, especially once hype fades.
On Stoxcraft, NFTs are discussed in Academy content covering crypto fundamentals and digital ownership.
They’re also referenced in market analysis explaining hype-driven trends, market cycles, and why attention-based assets experience sharp booms and busts.