What is 1/1 of x?
Learning crypto slang is one of the biggest hurdles that crypto newcomers have to overcome, and finding quick, clear definitions can be challenging. This is especially true when crypto Twitter or your favorite Bitcoin forum comes up with new terms at a rapid-fire pace. But where do you even start?
One of the first things you’ll run into while learning about non-fungible tokens (NFTs) as a creator or a buyer is the term “1 of 1”, one of one, or 1/1. Despite sounding like a math problem, it represents a key concept in crypto investing. Read on to learn more about the 1/1 NFTs and why they matter.
A 1/1 is exactly what it sounds like: a single, unique NFT that isn’t part of a collection and doesn’t have any other editions. 1/1 NFTs are generally regarded as more valuable than edition-based non-fungible tokens because of scarcity. In practice, this is primarily because only one person can own it at a time, making it a possible boon for traders holding out for the secondary market.
How It Works
Even if you’re a complete newbie to cryptocurrency & blockchain technology, you’ve probably heard of the process of minting an NFT. What you may not know, however, is that NFT creators have the choice to mint several editions (or copies) of the same image and list it on an exchange platform. This may be tempting for many new creators, but this drags down an NFT’s perceived value. That’s where the 1/1comes in.
Despite lacking a central authority, NFTs minted on a blockchain network still follow the law of supply and demand. If you’re minting a 1/1 NFT that appeals to various buyers, you may be looking at a fair profit in the initial sale and royalties, even as the chain of ownership stretches into the secondary market.
What Makes 1/1 NFTs Special?
Since the whole idea of NFTs, cryptocurrency & blockchain technology centers around an immutable record of ownership, the concept of a 1/1 may seem a little redundant. After all, doesn’t buying an NFT and storing it in your crypto wallet mean nobody else can own it? Thanks to smart contracts, the short answer is yes, but only from a technical standpoint.
Despite the concerted effort toward the regulation of Bitcoin and NFTs, there aren’t a lot of rules about who can mint what NFT and a piece’s content. As a result, there’s nothing stopping someone from making several NFTs with similar content and minting them as several editions of a collection. This can saturate the market, meaning traders may have to contend with price volatility as perceived value ebbs and flows.
Take the ever-popular Bored Ape Yacht Club, for example. Folks are scrambling to fill their Bitcoin wallets with these coveted NFTs, but some cost less than others due to their perceived “rarity” or scarcity of traits. Following this logic, a 1/1 NFT would be the only one of its kind, and therefore the rarest overall.
1/1 NFTs – Final Thoughts
You don’t have to be an expert in the world of crypto or take an NFT investing masterclass to have a workable knowledge of the blockchain. Sometimes all you need is a little bit of time and a general understanding of how items are valued.
If you’re a creator or trader entering the arena for the first time, be sure to learn as much as you can before shelling out bitcoin cash – especially when you’re dealing with a 1/1.
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