• An investor purchased an Ethereum based digital art of the Hashmasks collection at $130 and resold it for more than $150,000.
• Hashmask Items provides Name Changing Tokens (NCT) for holding the collectible items.

Ethereum-based Non-Fungible Tokens (NFTs) have been gaining traction as a strong trend in the market. Particularly useful for trading digital art, NFTs can be tools that bring profits to the artist and buyers of unique artworks. One investor has now managed to capitalize on the trend and earn thousands of dollars in just 3 days.

As reported by a member of the Ethereum Futures Fund Index NFTX team, a buyer bought one of the artworks from the Hashmasks collection for $130 and then resold it for more than $150,000 or 100 ETH, all in 3 days. The artwork is called “Trump” and is one of the “living collectibles” that make up the Hashmasks collection. The image below shows the artwork.

Capitalizing on art scarcity with Ethereum’s blockchain

Created by more than 70 artists globally, the collection consists of 16,384 digital portraits. As the collection’s website states, investors of the collectibles get 10 Name Changing Tokens (NCT) for every day they hold the artwork. These NCTs are the native tokens of the Hashmasks collection.

Their purpose is to allow investors to choose a name for the token they have invested in, upload it to the Ethereum blockchain and get a hash and two addresses as proof of its originality. That way, collectors can determine the name of the commodity and monetize the rarity of the items. The Hashmasks website states:

This opens up a whole new dimension for collectibles where the value hierarchy of the individual pieces of the whole collective art is highly impacted by the preferences of the consumers.

Each of the pieces in the collection earns investors about 3,660 NCT a year. About 1,800 NCT are required to change the name of the collectible piece. These NCT must be sent to the address of the art piece’s contract (the NFT) on the Ethereum blockchain. Then, the tokens are “burned.”

The sale was made through the Open Sea digital marketplace. The piece was purchased by an anonymous buyer only known as “westcoastbill”. The buyer has a high purchase history and there are several items in his personal collection of Hashmasks.

“westcoastbill” may be accumulating the Hashmasks pieces to obtain more NCT and to be able to change the names of the items more easily. In addition, the pieces acquire a fixed name after the entire supply of NCT that will be issued for up to 10 years has been burned. After that, they will become completely unalterable items with a unique name registered on the Ethereum blockchain.

Hashmasks collection appears to be in high demand. Data from Open Sea shows that the pieces have traded for an average price of 2,313 ETH with a trading volume of 5504.9 ETH since January 24, 2021, as shown in the chart below.

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