Research

Non-Fungible Token (NFT): What It Means and How It Works?

Learn more about an NFT, or non-fungible token, and how it works.
Token Metrics Team
12 minutes
MIN

The most expensive NFT sale to date was Beeple's Everydays: The First 5000 Days, which sold for $69.3 million. This highlights the growing interest in NFTs and the potential for them to be used as a vehicle for sharing virtually any form of media using the blockchain.

But what is an NFT? Let's find out.

What is an NFT?

NFTs, or non-fungible tokens, are unique digital assets with blockchain-managed ownership. They are stored on a blockchain and cannot be replicated or destroyed, making them resistant to tampering. NFTs can represent a wide range of items, including game items, digital art, collectibles, event tickets, and even ownership records for physical assets.

Unlike traditional cryptocurrencies, which are interchangeable and can be easily replicated, NFTs are non-fungible, meaning they have unique qualities that make them one-of-a-kind. This is why NFTs have gained popularity in the art world, where they can be used to verify the authenticity of a digital artwork and ensure that it cannot be copied or stolen.

How Can We Ensure Unique Authenticity?

When someone purchases an NFT, they not only receive the artwork itself, but also a digital receipt that proves that the piece is original, unique, and authentic. This receipt is stored on the blockchain and can be easily accessed and verified by anyone who wants to confirm the ownership and authenticity of the NFT.

While it is technically possible for someone to take a screenshot of an NFT and claim that they own it, this does not give them legal ownership of the artwork. Just like taking a picture of the Mona Lisa at the Louvre does not mean that you own the painting, taking a screenshot of an NFT does not give you ownership of the artwork.

To legally own an NFT, you must purchase it using cryptocurrency and store it in a virtual showcase. This allows you to own and display your artwork in a way that is secure and verifiable, and it ensures that you are the legal owner of the NFT.

NFT Basics You Need To Know

Non-fungible tokens (NFTs) are unique digital files that are stored on a blockchain. A blockchain is a decentralized, public digital ledger that records every transaction that takes place on the decentralized web. This means that the entire history of an NFT, including its creator, properties, transactions, and smart contracts, is backed by a powerful blockchain.

NFTs are different from fungible tokens, such as Bitcoin or Ethereum, which are interchangeable and store value. In contrast, NFTs store data on the blockchain, making them unique and non-replicable.

Important Traits Of NFTs

Some key characteristics of NFTs include:

  • Digital ownership: NFTs are owned and controlled by the individuals who hold them in their digital wallets.
  • Permanent: The data associated with an NFT is permanently stored within the token itself. This can include images, messages, signatures, or any other data.
  • Permission-less: NFTs can be built on a permission-less blockchain, such as Ethereum, meaning that anyone can create and use them.
  • Programmable: Because an NFT is just a piece of code on a blockchain, it can be programmed to have various attributes. For example, an NFT artwork might be programmed to pay the artist royalties on every secondary sale of that artwork.
  • Unique: The uniqueness of an NFT can be verified on the blockchain, ensuring that it is one-of-a-kind and cannot be replicated.

How to Own One? 

To create an NFT, there are several steps that you can follow:

  1. Get your media ready: NFTs support a variety of file types, such as MP3 audio, JPG and PNG images, and 3D files like GLB.
  2. Set up a non-custodial wallet: This will allow you to securely store the cryptocurrency that you will use to buy, sell, and create NFTs. Wallets are also necessary for signing in and creating accounts on NFT marketplaces.
  3. Buy Ethereum or other fungible tokens: You will need to purchase cryptocurrency to cover the cost of minting your NFT.
  4. Connect your wallet to an NFT marketplace: Popular options include Rarible and OpenSea. Connect your wallet by tapping the "Connect" button in the top right corner of the screen. This will create your account and allow you to start creating, minting, and selling your NFTs.
  5. Upload your file and describe your asset: Once you have connected your wallet, you can upload your file to the marketplace and provide a description of your asset. Decide if you want to create a standalone piece or multiple copies of the same NFT.
  6. Mint your NFT: The minting process requires Ethereum for transaction approvals. Once complete, your digital artwork will be ready to be traded and purchased on the marketplace.

Once you have created your NFT, there are several things that you can do with it:

  • Buy and sell it on a marketplace
  • Trade or gift it to others
  • Use it in apps or games
  • Showcase your public NFT inventory on a platform or social media.

The Secondary Markets for NFTs

NFT minting platforms enable creators to create non-fungible tokens (NFTs) to retain more control over their creative output. These NFTs can be sold on the following secondary marketplaces:

  • OpenSea: The first and largest marketplace for NFTs, OpenSea is committed to using open protocols like Ethereum and interoperable standards like ERC-721 and ERC-1155 to enable new digital economies. The platform allows consumers to trade items freely, creators to launch new digital works, and developers to build marketplaces for their digital items. It recently launched the beta version of its Solana-based NFT marketplace.
  • Coinbase NFT: Coinbase recently opened its NFT marketplace to the public in beta. The marketplace acts as a social media platform where users can buy, sell, and interact with NFTs. It aims to make minting, purchasing, showcasing, and discovering NFTs easier.
  • Solanart: Solanart is the first and largest fully-fledged NFT marketplace on Solana. Users can easily access digital collectibles and explore, buy, and sell NFTs that run on the Solana blockchain.
  • Rarible: Rarible is a do-it-yourself NFT marketplace where creators can mint NFTs with ease. The platform's native governance token, "RARI," is used to incentivize users and give the community a voice. However, unrestricted access means that Rarible has become a place for people to mint counterfeit versions of existing NFTs.
  • Nifty Gateway: Owned by the Gemini crypto exchange, Nifty Gateway is a popular NFT marketplace that focuses on user-friendly and viral drops by celebrated artists.
  • SuperRare: SuperRare (SR) is one of Ethereum's first crypto-art NFT marketplaces. Only accepted artists can participate in the platform, where users can discover, buy, and sell tokenized digital art and showcase their collections.

The demand for secondary NFT sales is growing rapidly, leading to increased competition among these marketplaces. Like the early days of Web 1 and 2.0, the emergence of Web 3.0 has created an open market where these platforms must find ways to attract and retain customers.

Some Notable NFT Projects

The thriving NFT market has led to the launch of several high-value projects, including the following companies:

  • Yuga Labs: a blockchain technology company that develops Ethereum-based NFTs and digital collectibles. Yuga's first project, Bored Ape Yacht Club, is one of the most valuable NFT collectibles in the space. The company has also rewarded its holders with free NFTs and other perks. Yuga Labs recently acquired Larva Labs, which brings high-value projects like Cryptopunks and Meebits under the Yuga brand. The company is backed by investors like Coinbase, Samsung, and Mark Cuban.
  • Doodles: a collection of 10,000 Ethereum-based NFTs featuring unique visual traits designed by BurntToast. The Doodles collection includes rare heads, costumes, and colorways, and the universe is ever-expanding. Owners of Doodles have exclusive access to new products, merchandise, and events.
  • Okay Bears: a collection of 10,000 Solana-based NFTs. Ownership of an Okay Bear grants access to a virtuous community that will extend beyond the internet into the real world.

‍The Future of NFTs

Blockchain technology is known for its ability to represent assets and prove ownership. NFTs take this a step further by enabling people to potentially purchase non-fungible assets like land and gold. The global market cap for gold and real estate is over $300 trillion, so even a small percentage of that being tokenized would greatly increase the total crypto market cap. Tokenized real estate offers ordinary people the opportunity to invest in real estate, which has traditionally been difficult for the average person to participate in.

NFTs also have applications in other industries. For example, Nike recently filed a patent for NFT-enabled sneakers called "CryptoKicks." In 2019, Louis Vuitton announced plans to use NFTs to track the ownership of luxury fashion items. NFTs can also be used to tokenize certifications, degrees, and licenses, as well as sensitive data like medical records. The potential for NFTs to show ownership of any non-fungible commodity, whether real or virtual, is vast.

In conclusion, the use of non-fungible tokens (NFTs) has expanded beyond digital art and collectibles to include a wide range of real and virtual assets. The ability of NFTs to represent and prove ownership offers exciting possibilities for industries such as real estate, fashion, and even healthcare. As the technology and market continue to evolve, the potential applications for NFTs are endless.

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Token Metrics Team
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Research

Quantmetrics API: Measure Risk & Reward in One Call

Token Metrics Team
5
MIN

Most traders see price—quants see probabilities. The Quantmetrics API turns raw performance into risk-adjusted stats like Sharpe, Sortino, volatility, drawdown, and CAGR so you can compare tokens objectively and build smarter bots and dashboards. In minutes, you’ll query /v2/quantmetrics, render a clear performance snapshot, and ship a feature that customers trust. Start by grabbing your key at Get API Key, Run Hello-TM to verify your first call, then Clone a Template to go live fast.

What You’ll Build in 2 Minutes

  • A minimal script that fetches Quantmetrics for a token via /v2/quantmetrics (e.g., BTC, ETH, SOL).
  • A smoke-test curl you can paste into your terminal.
  • A UI pattern that displays Sharpe, Sortino, volatility, max drawdown, CAGR, and lookback window.

Next Endpoints to Add

  • /v2/tm-grade (one-score signal)
  • /v2/trading-signals
  • /v2/hourly-trading-signals (timing)
  • /v2/resistance-support (risk placement)
  • /v2/price-prediction (scenario planning)

Why This Matters

Risk-adjusted truth beats hype. Price alone hides tail risk and whipsaws. Quantmetrics compresses edge, risk, and consistency into metrics that travel across assets and timeframes—so you can rank universes, size positions, and communicate performance like a professional.

Built for dev speed

A clean REST schema, predictable latency, and easy auth mean you can plug Sharpe/Sortino into bots, dashboards, and screeners without maintaining your own analytics pipeline. Pair with caching and batching to serve fast pages at scale.

Where to Find

The Quant Metrics cURL request is located in the top right of the API Reference, allowing you to easily integrate it with your application.

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How It Works (Under the Hood)

Quantmetrics computes risk-adjusted performance over a chosen lookback (e.g., 30d, 90d, 1y). You’ll receive a JSON snapshot with core statistics:

  • Sharpe ratio: excess return per unit of total volatility.
  • Sortino ratio: penalizes downside volatility more than upside.
  • Volatility: standard deviation of returns over the window.
  • Max drawdown: worst peak-to-trough decline.
  • CAGR / performance snapshot: geometric growth rate and best/worst periods.

Call /v2/quantmetrics?symbol=<ASSET>&window=<LOOKBACK> to fetch the current snapshot. For dashboards spanning many tokens, batch symbols and apply short-TTL caching. If you generate alerts (e.g., “Sharpe crossed 1.5”), run a scheduled job and queue notifications to avoid bursty polling.

Production Checklist

  • Rate limits: Understand your tier caps; add client-side throttling and queues.
  • Retries & backoff: Exponential backoff with jitter; treat 429/5xx as transient.
  • Idempotency: Prevent duplicate downstream actions on retried jobs.
  • Caching: Memory/Redis/KV with short TTLs; pre-warm popular symbols and windows.
  • Batching: Fetch multiple symbols per cycle; parallelize carefully within limits.
  • Error catalog: Map 4xx/5xx to clear remediation; log request IDs for tracing.
  • Observability: Track p95/p99 latency and error rates; alert on drift.
  • Security: Store API keys in secrets managers; rotate regularly.

Use Cases & Patterns

  • Bot Builder (Headless): Gate entries by Sharpe ≥ threshold and drawdown ≤ limit, then trigger with /v2/trading-signals; size by inverse volatility.
  • Dashboard Builder (Product): Add a Quantmetrics panel to token pages; allow switching lookbacks (30d/90d/1y) and export CSV.
  • Screener Maker (Lightweight Tools): Top-N by Sortino with filters for volatility and sector; add alert toggles when thresholds cross.
  • Allocator/PM Tools: Blend CAGR, Sharpe, drawdown into a composite score to rank reallocations; show methodology for trust.
  • Research/Reporting: Weekly digest of tokens with Sharpe ↑, drawdown ↓, and volatility ↓.

Next Steps

  • Get API Key — start free and generate a key in seconds.
  • Run Hello-TM — verify your first successful call.
  • Clone a Template — deploy a screener or dashboard today.
  • Watch the demo: VIDEO_URL_HERE
  • Compare plans: Scale with API plans.

FAQs

1) What does the Quantmetrics API return?

A JSON snapshot of risk-adjusted metrics (e.g., Sharpe, Sortino, volatility, max drawdown, CAGR) for a symbol and lookback window—ideal for ranking, sizing, and dashboards.

2) How fresh are the stats? What about latency/SLOs?

Responses are engineered for predictable latency. For heavy UI usage, add short-TTL caching and batch requests; for alerts, use scheduled jobs or webhooks where available.

3) Can I use Quantmetrics to size positions in a live bot?

Yes—many quants size inversely to volatility or require Sharpe ≥ X to trade. Always backtest and paper-trade before going live; past results are illustrative, not guarantees.

4) Which lookback window should I choose?

Short windows (30–90d) adapt faster but are noisier; longer windows (6–12m) are steadier but slower to react. Offer users a toggle and cache each window.

5) Do you provide SDKs or examples?

REST is straightforward (JS/Python above). Docs include quickstarts, Postman collections, and templates—start with Run Hello-TM.

6) Polling vs webhooks for quant alerts?

Dashboards usually use cached polling. For threshold alerts (e.g., Sharpe crosses 1.0), run scheduled jobs and queue notifications to keep usage smooth and idempotent.

7) Pricing, limits, and enterprise SLAs?

Begin free and scale up. See API plans for rate limits and enterprise SLA options.

Disclaimer

All information provided in this blog is for educational purposes only. It is not intended as financial advice. Users should perform their own research and consult with licensed professionals before making any investment or trading decisions.

Research

Crypto Trading Signals API: Put Bullish/Bearish Calls Right in Your App

Token Metrics Team
4
MIN

Timing makes or breaks every trade. The crypto trading signals API from Token Metrics lets you surface bullish and bearish calls directly in your product—no spreadsheet wrangling, no chart gymnastics. In this guide, you’ll hit the /v2/trading-signals endpoint, display actionable signals on a token (e.g., SOL, BTC, ETH), and ship a conversion-ready feature for bots, dashboards, or Discord. Start by creating a key on Get API Key, then Run Hello-TM and Clone a Template to go live fast.

What You’ll Build in 2 Minutes

  • A minimal script that fetches Trading Signals via /v2/trading-signals for one symbol (e.g., SOL).
  • A copy-paste curl to smoke-test your key.
  • A UI pattern to render signal, confidence/score, and timestamp in your dashboard or bot.

Endpoints to add next

  • /v2/hourly-trading-signals (intraday updates)
  • /v2/resistance-support (risk placement)
  • /v2/tm-grade (one-score view)
  • /v2/quantmetrics (risk/return context)

Why This Matters

Action over analysis paralysis. Traders don’t need more lines on a chart—they need an opinionated call they can automate. The trading signals API compresses technical momentum and regime reads into Bullish/Bearish events you can rank, alert on, and route into strategies.

Built for dev speed and reliability. A clean schema, predictable performance, and straightforward auth make it easy to wire signals into bots, dashboards, and community tools. Pair with short-TTL caching or webhooks to minimize polling and keep latency low.

Where to Find

You can find the cURL request for Crypto Trading Signals in the top right corner of the API Reference. Use it to access the latest signals!

Live Demo & Templates

  • Trading Bot Starter: Use Bullish/Bearish calls to trigger paper trades; add take-profit/stop rules with Support/Resistance.
  • Dashboard Signal Panel: Show the latest call, confidence, and last-updated time; add a history table for context.
  • Discord/Telegram Alerts: Post signal changes to a channel with a link back to your app.

How It Works (Under the Hood)

Trading Signals distill model evidence (e.g., momentum regimes and pattern detections) into Bullish or Bearish calls with metadata such as confidence/score and timestamp. You request /v2/trading-signals?symbol=<ASSET> and render the most recent event, or a small history, in your UI.

For intraday workflows, use /v2/hourly-trading-signals to update positions or alerts more frequently. Dashboards typically use short-TTL caching or batched fetches; headless bots lean on webhooks, queues, or short polling with backoff to avoid spiky API usage.

Production Checklist

  • Rate limits: Know your tier caps; add client-side throttling and queues.
  • Retries/backoff: Exponential backoff with jitter; treat 429/5xx as transient.
  • Idempotency: Guard downstream actions (don’t double-trade on retries).
  • Caching: Memory/Redis/KV with short TTLs for reads; pre-warm popular symbols.
  • Webhooks & jobs: Prefer webhooks or scheduled workers for signal change alerts.
  • Pagination/Bulk: Batch symbols; parallelize with care; respect limits.
  • Error catalog: Map common 4xx/5xx to clear fixes; log request IDs.
  • Observability: Track p95/p99 latency, error rate, and alert delivery success.
  • Security: Keep keys in a secrets manager; rotate regularly.

Use Cases & Patterns

  • Bot Builder (Headless): Route Bullish into candidate entries; confirm with /v2/resistance-support for risk and TM Grade for quality.
  • Dashboard Builder (Product): Add a “Signals” module per token; color-code state and show history for credibility.
  • Screener Maker (Lightweight Tools): Filter lists by Bullish state; sort by confidence/score; add alert toggles.
  • Community/Discord: Post signal changes with links to token pages; throttle to avoid noise.
  • Allocator/PM Tools: Track signal hit rates by sector/timeframe to inform position sizing (paper-trade first).

Next Steps

  1. Get API Key — create a key and start free.
  2. Run Hello-TM — confirm your first successful call.
  3. Clone a Template — deploy a bot, dashboard, or alerting tool today.

FAQs

1) What does the Trading Signals API return?

A JSON payload with the latest Bullish/Bearish call for a symbol, typically including a confidence/score and generated_at timestamp. You can render the latest call or a recent history for context.

2) Is it real-time? What about latency/SLOs?

Signals are designed for timely, programmatic use with predictable latency. For faster cycles, use /v2/hourly-trading-signals. Add caching and queues/webhooks to reduce round-trips.

3) Can I use the signals in a live trading bot?

Yes—many developers do. A common pattern is: Signals → candidate entry, Support/Resistance → stop/targets, Quantmetrics → risk sizing. Always backtest and paper-trade before going live.

4) How accurate are the signals?

Backtests are illustrative, not guarantees. Treat signals as one input in a broader framework with risk controls. Evaluate hit rates and drawdowns on your universe/timeframe.

5) Do you provide SDKs and examples?

You can integrate via REST using JavaScript and Python snippets above. The docs include quickstarts, Postman collections, and templates—start with Run Hello-TM.

6) Polling vs webhooks for alerts?

Dashboards often use cached polling. For bots/alerts, prefer webhooks or scheduled jobs and keep retries idempotent to avoid duplicate trades or messages.

7) Pricing, limits, and enterprise SLAs?

Begin free and scale as you grow. See API plans for allowances; enterprise SLAs and support are available.

Research

Fundamental Grade Crypto API: Real Crypto Fundamentals in One Score

Token Metrics Team
3
MIN

Most traders chase price action; Fundamental Grade Crypto API helps you see the business behind the token—community traction, tokenomics design, exchange presence, VC signals, and DeFi health—consolidated into one score you can query in code. In a few minutes, you’ll fetch Fundamental Grade, render it in your product, and ship a due-diligence UX that drives trust. Start by grabbing your key at the Get API Key page, Run Hello-TM to verify your first call, then Clone a Template to go live fast.

What You’ll Build in 2 Minutes

A minimal script to fetch Fundamental Grade from /v2/fundamental-grade for any symbol (e.g., BTC).

  • Optional curl to smoke-test your key in seconds.
  • A drop-in pattern to display the grade + key drivers in dashboards, screeners, and research tools.

Endpoints to consider next

  • /v2/tm-grade (technical/sentiment/momentum)
  • /v2/price-prediction (scenario planning)
  • /v2/resistance-support (risk levels)
  • /v2/quantmetrics (risk/return stats)

Why This Matters

Beyond price, toward quality. Markets are noisy—hype rises and fades. Fundamental Grade consolidates hard-to-track signals (community growth, token distribution, liquidity venues, investor quality, DeFi integrations) into a clear, comparable score. You get a fast “is this worth time and capital?” answer for screening, allocation, and monitoring.

Build trust into your product. Whether you run an investor terminal, exchange research tab, or a portfolio tool, Token Metrics discovery helps users justify positions. Pair it with TM Grade or Quantmetrics for a balanced picture: what to buy (fundamentals) and when to act (signals/levels).

Where to Find

The Fundamental Grade is easily accessible in the top right of the API Reference. Grab the cURL request for seamless access!

Ready to build?

  • Get API Key — generate a key and start free.
  • Run Hello-TM — verify your first successful call.
  • Clone a Template — deploy a screener or token page today.

Watch the demo: VIDEO_URL_HERE. Compare plans: Scale confidently with API plans.

FAQs

1) What does the Fundamental Grade API return?

A JSON payload with the overall score/grade plus component scores (e.g., community, tokenomics, exchange presence, VC backing, DeFi health) and timestamps. Use the overall grade for ranking and component scores for explanations.

2) How fast is the endpoint? Do you publish SLOs?

The API is engineered for predictable latency. For high-traffic dashboards, add short-TTL caching and batch requests; for alerts, use jobs/webhooks to minimize round-trips.

3) Can I combine Fundamental Grade with TM Grade or signals?

Yes. A common pattern is Fundamental Grade for quality filter + TM Grade for technical/sentiment context + Trading Signals for timing and Support/Resistance for risk placement.

4) How “accurate” is the grade?

It’s an opinionated synthesis of multiple inputs—not financial advice. Historical studies can inform usage, but past performance doesn’t guarantee future results. Always layer risk management and testing.

5) Do you offer SDKs and examples?

You can use REST directly (see JS/Python above). The docs include quickstarts, Postman, and ready-to-clone templates—start with Run Hello-TM.

6) Polling vs webhooks for fundamentals updates?

For UI pages, cached polling works well. For event-style notifications (upgrades/downgrades), prefer webhooks or scheduled jobs to avoid spiky traffic.

7) What about pricing, limits, and enterprise SLAs?

Begin free and scale as you grow. See API plans for allowances; enterprise SLAs and support are available—contact us.

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