Always invest responsibly and only with funds you can afford to lose. Section 14 of the Copyrights Act, 1957, provides exclusive rights of ownership to the owner, which also includes the right to mint the NFT of the work. Minting means converting a digital file into an NFT backed by blockchain technology. This digital world may experience a change after the enactment of the Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019. Section 3 of this Bill has clearly stated that no person shall mine, generate, hold, sell, deal in issue, transfer, dispose of, or use cryptocurrency in the territory of India.

  • Although the NFT market isn’t exactly what it used to be, it can still be profitable.
  • In this sense, it is very similar to EA FC’s Ultimate Team mode, with each player having unique stats that improve as their rarity level increases.
  • The platform also runs season-based rewards programs where users earn points through platform activity.
  • Let’s compare the top NFT marketplaces to help you make a decision.

Be cautious about works that appear to be created by famous artists. NFTs resembling pieces by the artist Banksy have netted $900,000, but they have turned out to be fakes. Regulatory clarity and market development will help determine the future of the NFT industry in India. It is likely that as the Indian government creates regulations on all fronts, there shall be a massive boost to the NFT market. Concerns arise regarding the usage of NFTs for laundering money, given the easy cross-border transaction ability of such tokens. Thus, regulatory measures should be taken to counteract this situation.

Challenges and risks of NFTs

Although it is unclear, NFTs can be categorised as ‘intangible assets’ and governed under the software and intellectual property parts of the FEMA regulations. The main issue arises from pinpointing the location of an NFT, which may cause NFT holders and exchanges to circumvent FEMA restrictions entirely. It should be noted that digital artwork is also artwork, as it has always been, and copyright owners and their licensees are the only ones who should be creating NFTs based on copyrighted artwork. The Bank stated its concern that enormous use of virtual currency trading may lead to unexpected hacking of data, which would result in terrorist attacks, money laundering, etc. The tailored approach wasn’t just successful—it was essential to the project’s IEO success.

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One NFT use case that took the Web3 industry by storm is the emergence of collectible profile picture (PFP) collections like Bored Ape Yacht Club (BAYC) and Azuki. These collections present a harmonious design narrative, with each NFT boasting unique trait combinations. The individual value of any PFP NFT often hinges on trait rarity, leading to a general pricing strategy based on the “floor price”—the price of the least expensive NFT in the collection. NFTs have been criticized, as has the entire cryptocurrency space, for their large environmental costs.

What Are NFTs and NFT Marketplaces?

When choosing a platform, you need to make sure that you find one that supports your digital wallet. MetaMask works on essentially all ETH-based sites, https://immediate-edgetech.org/ while Phantom is common on Solana platforms like Magic Eden. Rarible supports multiple wallets and blockchains, so it offers more flexibility.

Famous NFT Cases in India

NFT marketplaces work like other online platforms, but instead of selling physical items, they sell digital goods that live on the blockchain. A copyright can be obtained for works like original literature, drama, music, artistic works, cinematographic films, and recordings of sound as per the Copyright Act, 1957. We can’t interpret from above whether an NFT would qualify as a work that can be copyrighted in India. Therefore, there is a need to expand the scope of copyright laws in India. Copyright laws treat NFTs the same as any other traditional artwork. Whenever a new artwork is created by an artist, he acquires the copyrights that signed him as the owner.

As tens of millions of dollars in transactions pour in for NFTs, enthusiasts say, NFTs will soon expand beyond trading art, music, video clips and memes. One startup lets people use their NFTs as collateral for loans. First, you usually have to buy a cryptocurrency, like Ethereum. Some of the popular ones include KnownOrigin, Rarible and OpenSea. And to make it even more confusing, not all NFTs are originals. But in this case, the reprint has what is essentially a unique bar code, or “token,” on the blockchain, which is a type of decentralized record-keeping system.

NFTs can also democratize investing by fractionalizing physical assets. Fractionalized ownership through tokenization can extend to many assets. For instance, a painting need not always have a single owner—tokenization allows multiple people to purchase a share of it, transferring ownership of a fraction of the physical painting to them. Many blockchains can create NFTs, but they might be called something different. For instance, on the Bitcoin blockchain, they are called Ordinals. Like an Ethereum-based NFT, a Bitcoin Ordinal can be bought, sold, and traded.

People have grown to trust this new method of blockchain and are starting to learn about its importance gradually. The future business world will grow with the help of blockchain, as it is very cost-effective. Famous entities have been launching their own NFT collections in recent times. These significant impacts mean that we can soon start trading through NFTs and get more valuable insights. What makes NFTs unique is that once tokenized, you can purchase or exchange them, and they are stored on the blockchain.