How To Trade Movie NFTs Profitably In 2022

August 4, 2022 by Mimi Phan

If you’ve been paying attention, you’ve probably seen or heard news about NFTs; more and more people are talking about them these days. A good portion of the buzz around NFTs stems from the insane amount of profit that people have made from them.

NFTs are making their mark across many different fields, so, it’s pretty easy for you to find one that represents something you’re passionate about. Today, we’re here to talk about how NFTs have made their way to Hollywood. If you’re a movie lover, there’s a good chance that your favorite titles may already be available as NFTs; if not, you could see them sooner than you think.

Below, we’ll dive into how to trade movie NFTs profitably in 2022, but first let’s take a simple NFT crash course!

NFTs: what are they and how do they relate to movies?

“NFT” stands for “non-fungible token.” Basically, an NFT is a digital asset that represents unique ownership. While NFTs are similar to cryptocurrencies, they’re not quite the same. Cryptocurrencies are fungible. This means that you can trade one coin (say, Bitcoin) for another (say, Litecoin) and get the same value. On the flip side, no two NFTs can be traded for each other. Each is unique and represents a distinct asset.

When you buy an NFT, the details of your purchase are stored on a ledger called a blockchain. These details are permanent, and they prove that you’re the only one in the world who owns that NFT. 

NFTs in art and movies

The most popular NFT collections, like Bored Ape Yacht Club and Doodles, represent the work of talented artists – but there are also movie projects doing exciting things. For instance, the short “Charlie Bit My Finger” viral video sold for over $750,000 in May 2021 – and it was taken off YouTube as a result.

Over the past few years, film industry NFTs have really become a thing. Filmmakers can use NFTs as a way to sell their work and fund projects; movie lovers can also buy them as an investment. (Here’s a quick guide on investing in NFTs.)

It’s important to note that NFTs don’t necessarily have to depict entire movies. They could be short clips, episodes, never-seen-before directors’ cuts, or even trailers.

Claude Lanzmann: Spectres of the Shoah, an Oscar-nominated documentary, is an interesting example of a rare NFT project. The producers released 10 first-edition NFTs of the documentary, selling them for 200 Ether (ETH) each.

Another example is Stoner Cats, an animated series starring Mila Kunis and Chris Rock, which made over $8 million in sales. Each episode of the animated series was sold as an NFT. AMC Theaters and Sony also released exclusive NFTs for Spider-Man: No Way Home last year, giving tokens to fans who ordered advanced tickets.

The uptick in exciting movie NFTs shows that there is indeed a healthy market for them. And apart from the sentimental aspect of collecting these tokens, there’s a profit factor. A Bored Ape Yacht Club collector known as “Machibigbrother” has made a profit of $​​5.85 million trading 34 Bored Apes at a 182.29% return.

How movie NFT trading works

The value of NFTs rise and fall depending on trends, sentiment, and market behavior. Buyers can take advantage of these price swings for profit.

The process of actually trading NFTs involves three key actions: minting, buying, and flipping. 

1.    Minting an NFT

As expected, the first step involves a filmmaker releasing a film project NFT. This could be clips from a film, collectible cards, movie-related GIFs, or other media. The filmmaker could have an exclusive partnership with an NFT marketplace or simply release the project on the open market.

Another cool idea is creating a website specially for the project. This is especially great for filmmakers who have other projects on their website that they want other people to see – that’s automatic exposure for future projects. It also allows them to dictate their sale terms instead of following the rules of a marketplace.

2.     Buying the NFT

In the second step, movie lovers browse marketplaces for movie NFT projects or find interesting projects through social media. They settle on an NFT, buy it, and keep it in their wallet.

Pro tip: It may be easier to spot great movie tokens on niche marketplaces like Vuele and Veve instead of more general marketplaces like OpenSea.

3.    NFT flipping

This is the fun part. If you wish, you can now “flip” the movie NFT you bought. This means selling it for a higher price than you bought it for.

You can list the NFT on the same marketplace where you bought it or move it to a different marketplace, then set your price. Once you sell the NFT, you pocket your profit. Voila!

Important tips to remember when trading NFTs

Trading movie NFTs is simple and can be rewarding as long as you keep a few key things in mind. These tips could help:

• It’s important to know the value of what you’re selling. If your NFTs aren’t so popular on the market, you’ll want to be careful with the price you set.
• Remember that NFTs are only worth what people are willing to pay for them. Buy NFTs that are rare or interesting enough for people to pay you a higher amount for it.
• Always choose a popular NFT marketplace. This is the best way to get the exposure needed to sell your NFT quickly.
• It might take a while for you to find a buyer. Don’t rush the process.
• Movie NFTs with specific perks (like exclusive footage or tickets to a premiere) tend to sell much more easily, so look out for those.

Featured image by Tima Miroshnishenko on Pexels