Non-fungible tokens (NFTs) have been a significant part of the crypto space for years. The first mainstream NFT project was created in June 2017 by Larva Labs. Called CryptoPunks, the project represents what NFTs have been for a long time – unique digital images that primarily function as collectibles.
However, a new project looks set to transform what we mean by NFTs. This is HedgeUp (HDUP). It is currently being developed on the Ethereum blockchain and many crypto experts consider it to be one of the best-decentralized finance (DeFi) projects of the year. Read on to find out how HedgeUp changes the game.
Traditional non-fungible tokens (NFTs)
CryptoPunks was the first mainstream NFT project. It consists of a collection of 10,000 unique digital characters known as “punks.” Each punk has its own unique combination of traits like hair color, hairstyle, and accessories. The background also differs from character to character.
Sometime after its launch, CryptoPunks became quite popular among collectors and enthusiasts. This set the standard of what NFT projects would be for the next few years – collections of unique digital art.
NFTs would boom in 2021 and early 2022. However, the bear market of 2022 would highlight perhaps the biggest issue with these tokens – the lack of any real utility. Most NFT projects were just unique digital pictures. The most anyone could do with one was use it as a social media PFP.
This meant that much of the value of NFTs came from pure speculation. So, when things started turning sour in the crypto market, the NFT market also collapsed. This realization caused a lot of people to lose faith in NFTs as a viable investment instrument.
HedgeUp (HDUP) brings new utility to NFTs
Since the beginning of last year, projects have found ways to inject real-world utility into NFTs. This largely involves giving NFT holders some exclusive perks and benefits. For example, the Bored Ape Yacht Club (BAYC) NFT collection gives holders private online spaces, member-only live events, exclusive merchandise, etc.
HedgeUp (HDUP)’s approach to utility is very different. When most NFT projects turned to exclusive member-only benefits, HedgeUp turned to tokenization to create a one-of-a-kind product in the DeFi space.
It is building an investment platform that uses NFTs to give investors exposure to alternative assets like gold, diamonds, jewellery, artwork, and more. The project’s team says they will tokenize these assets into non-fungible tokens that people can then trade on its investment marketplace.
What this means is that HedgeUp (HDUP)’s NFTs are backed by real-world assets. The value of each NFT will change depending on the value of its underlying alternative asset. For example, an NFT backed by gold will track the value of gold. Investors that buy the NFT will essentially be investing in the underlying gold and can speculate on it to make a profit.
It is the first project to use NFTs to allow people to invest in alternative assets. As such, it is seen by many experts as a project that will revolutionalize NFTs and the alternative asset market.
The project is currently in presale. The project is selling its internal currency HDUP to investors at a discounted price of $0.036.
For more information about HedgeUp (HDUP) presale use the links down below:
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