NFT Mystery Boxes: What Are They & Are They Worth It?
The non-fungible token (NFT) market has drawn equal admiration and controversy among people interested in making money in the digital realm. Arguably one of the most peculiar products on sale in this market are NFT mystery boxes.
Read on to find out what NFT mystery boxes are and whether they are worth purchasing by an NFT collector looking to generate a return on investment.
What are NFT mystery boxes?
NFT mystery boxes contain a random but unknown NFT or set of NFTs with different rarity levels from a specific NFT collection.
Given their rarity, collectors may choose to keep their mystery boxes unopened and sell them for a profit to a willing buyer without ever opening the box.
The value of NFT mystery boxes lies in the anticipation by each buyer of what they are likely to receive when they open the box they bought. While the sense of adventure may rub off well onto some boxes, realistically, it fails to extend to all NFT mystery boxes. This is the reason for the variance in value from one mystery box to the other.
The allure of NFT mystery boxes
NFT mystery boxes’ allure comes from collectors not knowing what they will be getting.
Collectors can sell their box without opening it or opt to open it to see if individual NFTs contained inside are worth more than the entire mystery box.
The buzz around mystery boxes emerged in 2021 during the NFT market boom. Various companies now issue mystery boxes to potential clients to draw their curiosity as they anticipate what surprise or mystery they will uncover.
For example, Vogue Singapore partnered with NFT platform Brytehall and NFKings Productions to release NFT mystery boxes with artwork showing sunrises from ten cities around the world.
Given that surprise is subjective, buyers can quickly lose interest in their purchase after uncovering what they’ve bought, especially if they weren’t lucky enough to end up with valuable NFTs. This leads to some mystery boxes losing value after the first sale.
Where to find NFT mystery boxes
NFT mystery boxes are available for sale on numerous leading NFT marketplaces, such as Opensea, SuperRare, Rarible, and Binance NFT.
To buy a mystery box, you must set up a crypto wallet that supports NFTs and the blockchain network on which the NFTs mystery boxes of your choice operate. Some of these wallets include Coinbase Wallet, MetaMask, or Trust Wallet. You will also need the chain’s native tokens to cover transaction fees and the cost of the mystery box.
How to stay safe when buying NFT mystery boxes
Buying NFTs (and NFT mystery boxes) is not as simple as buying a book on Amazon.
Due to the self-sovereign nature of managing your non-fungible tokens using a non-custodial wallet, you need to make sure you adequately manage your wallet’s private keys and adhere to basic cybersecurity practices so that you don’t lose your NFTs due to a hack or an operational error.
First of all, you should stick to legitimate wallet service providers and NFT platforms to avoid the risk of phishing. Be sure to verify contact addresses, and take your time to research the NFT’s official website, roadmap, communication channels, and reviews before investing.
Secondly, you need to look out for common scams, such as messages from fake customers or technical support, fake giveaways, and counterfeit NFTs. Do cross-platform checks to verify the seller’s and NFT’s unique information on platforms such as Discord, or other social media profiles. Always use official links to avoid phishing.
Thirdly, pump and dump schemes are not new to the digital asset investment space, and are also common in the NFT market. If one person or group buys a collection of NFTs aggressively to drive up the demand, don’t fall for the price jumps. Beware of your own greed, or a scammer could use it to leverage your fear of missing out (FOMO) on “the next big thing.”
Finally, store your seed phrases safely, use verified wallet services, and avoid blindly clicking on links from unknown sources to avoid losing your NFTs or crypto to scammers.
Are NFT mystery boxes worth it?
While NFTs have experienced an incredible boom in 2021, with prices of NFTs containing pixelated figures or images of apes shooting to levels at which they maybe shouldn’t have traded, the current bear market has brought valuations back to levels that seem a tad more reasonable.
As such, buying NFT mystery boxes as an investment in the hopes of scoring big with an ultra-rare NFT may not be the smartest way to deploy capital in the crypto markets. Especially in the current market conditions, where investors - most notably new crypto investors and NFT collectors - are still licking their wounds.
Similar to traditional art collecting, you must be able to manage your expectations when dealing with NFTs, and in particular mystery NFTs, as the market determines what an NFT is worth, and you may end up with NFTs that are not as rare and valuable as you would like.
If you still want to go ahead and try your luck with an NFT mystery box, no one is stopping you. But make sure you don’t spend more than you can afford to lose, as many NFTs that were once worth thousands of dollars are no longer finding any buyers.
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