There is a world of difference between profiting with traditional NFT Tokens and the options for NiftyLocker’s physical NFTs. A typical NFT represents a digital photo, a movie file or even just a saying. This digital representation can be copied, stolen and modified. Can a ten second video really have a value of over $6 million when anyone can download and watch the same video for free?
NiftyLocker’s physical NFTs are deeds to real world collectible goods. In this guide we will look at some real world examples of trading Pokemon NFTs through NiftyLocker.
Meet XY Evolutions. These humble packs of Pokemon cards were first released on November 2nd, 2016. At the time, their wholesale cost was around $3 per pack with a typical retail value of anywhere from $5 to $7. They were available for purchase at those prices until late in 2019.
Fast forward to November 2020 and the same packs are now routinely selling for $25 each. That represents a 500% increase in value in just over 12 months. Even if one considers the value since release the cards have still grown in value by 100% per year for the five years they have been on the market.
Ignoring for a moment that you may enjoy collecting Pokemon, the cards represented a great investment opportunity. A typical purchase would have been for a full case of 36 packs. When the cards were current, that would have set you back around $200 here at NiftyLocker.com. We include storage on collectible for five years with most purchases and you pay as you go past that point.
If you bought the NFT for a case of cards in 2016, you could now expect to sell that NFT for up to $900. The sealed cases are attracting a premium so it may be possible to sell the NFT for up to $1200.
The new owner of the NFT would be responsible for shipping if they chose to redeem the item. So your profit would be as much as $1000 on the NFT. Of course, along the way you could have sold it sooner and received your value faster with less profit.
The new owner of the NFT can now make some decisions. Do they want those physical cards to open the packs and enjoy? Or do they plan to simply keep them safe in our warehouse until a later time?
A slightly older Pokemon release is now selling for $50 per pack.
The person who bought your NFT for $1200 could continue to hold it, and sell it in another year or two for $1800. It’s past the free storage period so they owe $5 per year – but even if they hold the item for five more years they still stand to profit $575.
At anytime the item could be sold on EBay and when sold, you can redeem the NFT and have the box shipped directly to your buyer.
It is hard to imagine a digital only NFT holding value the same as a physical NFT.
Remember, NiftyLocker sells you the deed to the product and charges you to store the item once you own it. It is not a security, it is a physical asset in your possession. At all times, the product belongs to you while you own the NFT. Your business accounting sees this the same as if you rent a storage locker to keep inventory. This can be far different than the unfortunate implications of bitcoin taxation. Talk to your accountant for details.