What is a PFP NFT?
You could have thought your cat crawled over the keyboard if you saw or saw the words PFP NFTs. No, that alphabet soup has a purpose: we’re talking about non-fungible profile photo (PFP) tokens (NFT).
The acronym relates to the widespread usage of these NFTs as literal profile images on social media platforms such as Twitter. For example, you may have seen celebrities use their Bored Ape Yacht Club NFT as their profile image. However, social media profile pictures are only one component of a bigger ecosystem built on digital image-based NFTs.
Begining of PFP NFT
The concept of NFTs symbolizing digital avatars was inspired by a project called CryptoPunks, which was founded in 2017 by Matt Hall and John Watkinson. Larva Labs developed thousands of randomly generated pixel art pictures of styled humans (Punks) and sold unique crypto tokens to represent ownership. The Punks appeared to have amusing personalities with which the owners might identify. The supply and designs of the Punks are fixed for all time; some designs are duplicates, while others occur several times throughout the collection. The most precious and uncommon items are actually one-of-a-kind.
To represent ownership of the CryptoPunks, Hall and Watkinson produced Ethereum coins. These were the very first NFTs. Initially, they were simply ordinary ERC-20 tokens with various modifications. For example, the developers made it hard to exchange token fractions. Since then, CryptoPunks and other similar initiatives have helped pave the way for a standardized NFT token dubbed ERC-721, which is suited to the functionalities that distinguish NFTs from other crypto currencies.
The popularity of CryptoPunks spawned a slew of additional initiatives that were inspired by it. Meebits was created by Hall and Watkinson. Like the CryptoPunks, they were 3D characters with varied degrees of uniqueness that could be traded.
According to CoinGecko, the CryptoPunks’ floor price in April 2022 was roughly 62 ETH, or more than $180,000, which means that’s the lowest you can purchase any one NFT from the collection. Meebits pricing pale in contrast, but you can’t get your hands on one for less than 6 ETH (about $18,000 at the time of writing).
Why you should have PFP NFT
Many of the things we need in the physical world will also be required in the virtual world. For example, a CryptoPunk avatar is a fun way to flex in the metaverse. It’s the equivalent of a Lamborghini in digital form. A means of alerting everyone of your existence.
Of course, not everyone can afford to buy an exotic vehicle. And not everyone desires one. NFTs allow you to express yourself while also becoming a part of a community that shares your beliefs. And, as they grow, the value of your NFT normally rises.
If it seems too good to be true, the Bored Ape Kennel Club, also gave members the option of claiming an NFT puppy. This is comparable to a membership dividend because the value of the dogs climbed in parallel with the value of BAYC.
Millions of NFT collectors, investors, and traders are looking at the PFP or profile NFTs. Because the majority of the parent projects underlying these NFTs have a set plan for their utility and expansion. Furthermore, these initiatives are supported by a large community that keeps an eye on the project’s progress.
Remember that NFT investments have capital risks, and you should proceed with caution in the NFT area. Before investing, you should monitor several initiatives and track their progress.