While NFTs are a great tool for artists to sell and showcase their work, there is another form of NFT that has taken web3 by storm. PFP NFTs, also known as Profile Picture non-fungible tokens are NFTs that can be used as an avatar within the Metaverse space. Interest in these types of NFTs skyrocketed lately. In this guide, we will be looking at the fundamentals of PFP NFTs and how they are relevant within web3 trends.
What exactly are NFTs?
Before we look at PFP NFTs we need to know exactly what an NFT is. A non-fungible token, or NFT, is the newest and most innovative form of owning assets in the virtual web space. Most would recount them as a unique collectible except in a digital format. Most common examples of NFTs are in-game items, digital artworks and collectibles, virtual land space, domain names, and more.
What is a PFP NFT and how was it started?
PFP NFTs, better known as Profile Picture Non-fungible Tokens are what really made NFTs popular during the pandemic. They are a form of generative digital artwork in which multiple traits are applied to images of aliens, ducks, apes, robots, humans, toads, or whatever you could dream of, in order to create a completely unique artwork. They are only shoulder length in size and display exactly how you would imagine, like a profile picture on your preferred social media platforms.
The artwork for these NFTs could be hand-drawn or digitally created and with the different traits added, are randomized to give you a unique NFT. Due to the increased popularity of these NFTs, different social media platforms have been looking for ways to allow their users to incorporate their own NFTs.
Twitter is already allowing its users to incorporate their NFTs from their crypto wallets. These NFTs can be bought and traded for cryptocurrencies with the backing of blockchain networks.
Benefits of owning PFP NFTs
What set PFPs apart from normal NFTs is not only the length someone is willing to go to get one but the fact that developers will usually only drop a certain quantity (around 3000 on average) which allows their users to become part of an exclusive community.
Users are able to treat this as an investment and either let the value of their PFP NFT grow or instantly trade it for its floor value. Having this exclusivity also allows brands to appeal to their customers by creating exclusive incentives should you own a certain NFT.
Community drive of these projects can be strategically done in order to grow their investments. Like any investment, it can rise and fall, and it’s up to you to decide if you want to take the risk. Multiple brands have tried their hand at PFP NFTs with Visa buying one for $150,000 and setting it as their Twitter PFP.