NFT: Question & Answer
April 20, 2022
Read Time 5 MIN
In this Q&A we explore the different aspects of non-fungible tokens (NFTs) and how to access these digital assets.
- Q: What is an NFT?
- Q: What is Ethereum and how does it relate to NFTs?
- Q: What is the VanEck Community NFT?
- Q: Why should I join the VanEck Community?
- Q: What are the different NFT rarities for the first drop?
- Q: How can I own a VanEck Community NFT?
- Q: Will VanEck NFTs be listed on an NFT marketplace?
- Q: How can I set up a crypto wallet?
- Q: When will the first VanEck NFTs drop?
- Q: Who is Hammy?
- Q: Why is VanEck launching an NFT community?
- Q: What are the future plans for the VanEck Community NFT?
- Q: How can investors buy NFTs?
Q: What is an NFT?
A: NFT stands for non-fungible token. An NFT is a unique digital asset allowing for digital ownership through blockchain technology. Each NFT is non-fungible, meaning that it cannot be replicated or counterfeited and cannot be equal to another NFT exactly.
The primary current use case for NFTs is ownership of digital art, gaming and collectables. However, using NFTs to tokenize physical assets, such as art and real estate, is becoming more relevant. In other words, NFTs are beginning to have more real world utility.
Q: What is Ethereum and how does it relate to NFTs?
A: Ethereum is a decentralized, open source blockchain that has smart contract functionality. Ether (ETH) is the token native to the Ethereum ecosystem. The first NFT project to utilize the Ethereum erc-721 non-fungible token standard was CryptoKitties in 2017.1 Many NFT projects are listed on platforms, such as OpenSea, and are priced in ETH. Most NFTs are part of the Ethereum blockchain. However, other blockchains are also implementing their own NFTs.
Q: What is the VanEck Community NFT?
A: If NFT’s are digital property rights, then the VanEck Community NFT is essentially a digital membership card offering exclusive access to an inclusive community of like-minded Investors and crypto enthusiasts.
The launch of the VanEck Community NFT is built around a series of promotional video releases. These videos will tell the fictional story of “Hammy” as he explores the past, present and future of monetary policy and is met by new friends that help him in his missions. The first NFT release will be in the form of airdropped still images from Hammy’s saga with a future, unique 3D avatar reveal. VanEck Community NFTs will live on the Ethereum blockchain.
Q: Why should I join the VanEck Community?
A: Joining the VanEck Community will provide various real-world benefits based on the traits of each unique NFT. There is a base level of benefits, which include early access to certain research, invitations to real and virtual events and the opportunity to get a first look at specific investments based on each investor’s/ holder’s qualifications. Additional unique experiences and events will be determined by the unique traits of the PFP (Picture for Profile) that each VanEck Community NFT member holds.
Q: What are the different NFT rarities for the first drop?
A: There will be 1,000 total NFTs broken down into three rarities: common (750), rare (230), and legendary (small amount). The legendary rarity NFTs will feature important historical figures. The rarity of the NFT will determine the types of benefits associated with it.
Examples of NFT benefits include early access to VanEck thought leadership, lunch with Jan Van Eck, exclusive VanEck party access in trendy locations and much more!
Q: How can I own a VanEck Community NFT?
A: You can sign up on our dedicated NFT webpage. A limited number of NFTs will be released and distributed to the community via airdrop. Just fill out the form and the NFT will be sent to your ETH address on the drop date. To receive a NFT you must have a crypto wallet address. Learn more about the different types of crypto wallets.
Q: Will VanEck NFTs be listed on an NFT marketplace?
A: No, VanEck NFTs will be airdropped to those who sign up. VanEck will not be making a profit from the distribution of NFTs nor collecting a creator fee.
Q: How can I set up a crypto wallet?
A: Some popular wallet options are Metamask, Trust Wallet, and Coinbase wallet. Please refer to the blog below to see a step by step breakdown of setting up a crypto wallet.
Q: When will the first VanEck NFTs drop?
A: The genesis round of NFTs will be airdropped to all who sign up before the 1,000 cap is reached. Still image NFT placeholders will be distributed beginning on in early May. These NFTs will have a future reveal. More details to come.
Q: Who is Hammy?
A: Hammy is a caricature of Alexander Hamilton and a representation of the VanEck crypto community members. Alexander Hamilton was a founding father of both the United States and the U.S. financial system.
The first VanEck campaign will feature a series of videos depicting Hammy’s journey through the past, present and future of monetary policy. These videos will each be accompanied by NFT drops. Hammy’s saga is the first look into the broader world of the VanEck Community.
Hammy is also one of the small amount of historical figures, which will comprise VanEck’s legendary rarity of NFTs with exclusive benefits.
Q: Why is VanEck launching an NFT community?
A: The primary purpose of the initiative is to bring together like-minded investors who are interested in the cryptocurrency and blockchain space. The secondary purpose of the initiative is to help educate VanEck clients on the crypto space, while also providing real-world utility.
Q: What are the future plans for the VanEck Community NFT?
A: During the reveal of the final PFP and third promotional video, we will be communicating with our NFT holders through periodic email communication, a web2 interface they can check for updates, a specific VanEck Community NFT Twitter account and YouTube channel. These mediums will be used to share announcements and alpha tied to utility and any potential future drops, and may include educational content and a way to capture community feedback for preferences around upcoming events.
Q: How can investors buy NFTs?
A: Learn more about purchasing NFTs.
1 Ethereum erc-721 non-fungible token standard is the standard for representing Non-fungible tokens. ERC 20 is the standard for Fungible tokens such as Ethereum.
Please note that VanEck may offer investments products that invest in the asset class(es) or industries included herein.
In consideration of the receipt of non-fungible tokens (“NFTs”) from VanEck, you represent, acknowledge, accept and agree that:
You received the NFTs as a gift from VanEck. You did not pay any consideration, monetary or otherwise, for the NFTs.
The NFTs are not an investment. Rather, the NFTs are digital memorabilia intended solely for entertainment purposes. As entertainment memorabilia given to you as a gift, the NFTs have no value and are not intended by VanEck to ever have any value. Neither VanEck nor a else will take or not take any current or future action that is designed in any way to maintain the value of the NFTs, or to cause their value to grow or increase. You must not attempt to obtain an NFT from VanEck if you view it as an investment.
As a condition of receiving the NFTs, you shall hold the NFTs for your own personal benefit, and you shall not act, and are not acting, on behalf of any other person or entity; except that, if you are an affiliate of an entity or person whose relationship or affiliation you have made VanEck aware of prior to your receiving the NFT, and VanEck consents to your receiving an NFT, you may receive an NFT. You shall not sell, assign, alienate, lease, lend, fractionalize, re-gift, convey or transfer in any way the NFTs (or any interest therein) to any other person or entity, even an affiliate. Any sale, transfer, assignment, or other action covered in the preceding sentence shall be void. You must not attempt to obtain an NFT from VanEck if you plan to sell or transfer it.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time. Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Historical performance is not indicative of future results. Current data may differ from data quoted. Any graphs shown herein are for illustrative purposes only.
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.
Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
Investors should conduct extensive research into the legitimacy of each individual cryptocurrency, including its platform, before investing. The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
- Investors must have the financial ability, sophistication and willingness to bear the risks of an investment and a potential total loss of their entire investment in cryptocurrency.
- An investment in cryptocurrency is not suitable or desirable for all investors.
- Cryptocurrency has limited operating history or performance.
- Fees and expenses associated with a cryptocurrency investment may be substantial.
There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies.
Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
Van Eck Associates Corporation
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