Contributing Writer at Tally
September 10, 2021
Heavy metal band Megadeth decided to capitalize on the surging demand for non-fungible tokens (NFTs) with craftable card packs. It offered two card packs: All-Access and General Admission.
The All-Access pack, which ran for $125, was limited to just 1,500 units and included 10 craftable cards, four rare craftable cards, one challenge craftable card and one physical collectible challenge coin.
As for the General Admission pack, there were 2,500 packs in total that ran for $10 each. These packs included five pre-minted craftable cards.
The card packs went on sale on August 26, 2021, at noon PST and are now sold out. But like all NFTs, individual cards and packs may be available for purchase from online marketplaces.
What are NFTs, why is a metal band getting into them and why are they so expensive? Let’s take a look.
Non-fungible tokens (NFTs) are digital recordings of ownership of a token. In the case of Megadeth’s NFT, the “token” is each craftable card. However, it can also be artwork, a song or album or any other digital file.
When you purchase an NFT, you transfer it to a digital wallet, and your ownership of that piece is certified via blockchain.
The Megadeth NFTs are certified via the Worldwide Asset eXchange (WAX) blockchain, which got its start as a decentralized exchange for video game assets and virtual collectibles. WAX protects the assets through WAX token production, smart contracts and random number generators.
When you start mentioning blockchain and digital wallets, images of cryptocurrency, like Bitcoin or Ethereum, come to mind. While they are similar in ways, NFTs have special characteristics that make them different from cryptocurrency.
The main difference is exchanging them. Whereas you can exchange one Bitcoin for another Bitcoin at a one-to-one ratio, the same doesn’t ring true for NFTs. Each NFT has a specific value, so exchanging one for another becomes far more difficult.
They’re almost like digital trading cards, where the rookie card of a superstar player is worth significantly more than some random player you’ve never heard of. The cards are structurally the same, but the value may be significantly higher than the other.
While it may seem like NFTs are a quick-burning fad that’ll fade out soon, they’ve actually been around since the mid-2010s. They’ve been on a surge lately — likely due to the COVID-19 pandemic and cryptocurrency’s boom — leading to a $250 million valuation in 2020.
And they continue growing in popularity. Even Twitter has gotten into the NFT game, offering 140 free NFTs back in June in honor of its original 140-character limitation. Before that, Twitter’s co-founder, Jack Dorsey, sold his first-ever tweet as an NFT for $2.9 million.
With their growing popularity and the support of large corporations, the assumption is, yes, NFTs are here to stay. However, like all investments, there is the opportunity to lose 100% of your initial investment. Always consult with a financial professional or an investment professional before investing in NFTs.