*obligatory not financial advice*
What is Algogems?
An NFT, or Non-Fungible Token, is unique digital asset on a blockchain. Among other use cases, it can be used as a sort of ownership certificate for a unique art piece, like images, videos, or music. Algogems is a marketplace for such art NFTs that runs on the cheap and fast Algorand blockchain. NFTs have been booming this year like crazy and some of them are being sold for millions, due to its low fees it will be much more affordable to trade them on Algorand.
Honestly, I don't see why jpegs that can just be screenshotted are being bought for thousands of dollars and I don't think that this boom will continue forever. However, some collectables and NFTs could have a lot of value if they are attached to game or special privileges, like if content creators would send discounts to people that hold a certain kind of NFT in their wallet. I think that the tech and utility behind NFTs will grow in the next few years and investing in infrastructure for them, like a marketplace, could be a wise decision.
With Algogems it is very easy to mint a new NFT and to sell it either for a fixed price or with an auction. To do so you only have to connect an Algorand browser wallet, like , to the site and hit the create tab. If you want to you can set a royalty fee, so that you also earn a small percentage each time your art is being sold again. There are no fees for creating and selling NFTs only for buying and if there is ever an issue when uploading your art then you can reach out to their awesome support that responds to emails within a few hours. If you are an artist that wants to try making NFTs then Algogems could be a good place to start. Currently Algogems only supports payments with ALGO.
The GEMS Token
GEMS is the native token of the platform. It will be used for rewards, for tipping and to a small degree also for governance.
It can be used to tip your favorite artists, which will make their art more visible by placing them higher in the marketplace. It will also be periodically distributed to artists who sell the most NFTs as further incentive. Algogems is not a DAO, but there is a community treasury for GEMS tokens and the GEMS holders can vote on what to use it for.
There is a limited max supply of 10,000,000 GEMS and it is a deflationary asset. The platform uses 5% of all NFT sales to buy and burn GEMS to reduce the supply and therefor reward the holders.
The value of the token obviously depends on the success of the platform and if it attracts more users, which is likely because of how much easier and cheaper it is to use than most other marketplaces, it will grow in value and its burn mechanism will also grow together with the platform.
Currently you can only buy it on the Tinyman DEX on Algorand. Since today you can also stake YLDL tokens on Yieldly to earn GEMS.
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