NFT Mystery Boxes Explained

NFT mystery boxes are not literal, physical boxes. They are called “mystery” because they contain an unidentified and often random NFT or several. A purchaser can only find out what they are after he or she buys one and symbolically opens it. 

An NFT, or non-fungible token, can be a work of art, a piece of real estate, a collectible, a video game, etc. They also have varying rarity levels and come from specific NFT collections. Considering these varying levels, one can opt to keep a box unopened and sell it to someone for a profit. 

But what is so appealing about them? The value is in one’s expectations of what they are likely to get when they “unpack” the item. Some boxes are very valuable; others – not so much. Still, the possibility of receiving something rare and precious is exciting enough to warrant the amount of money people are willing to pay for them. This has brought about increased gamification and allure to the NFT market. 

How do these boxes work?

Long story short — people buy combined collections of NFTs with mysterious contents. When an owner opens them digitally, he accesses these contents. Typically, they follow a process that starts with the actual purchase and then revealing the purchased content and ends with ownership or transfer of ownership. 

People can select and buy the NFT mystery box from a marketplace or platform that sells them. A random method or an algorithm is usually used to determine the contents, which we’re still in the dark about. Digitally “opening” the box shows what’s inside. The value of the contents varies depending on scarcity, demand, and what reputation the creator of the NFTs has. If one buys a new box developed by the creators of BAYC, for example, he can expect a relatively good value for money. BAYC was one of the most expensive NFT collections in history. They also have cryptocurrency with a ticker APE.  

After discovering what’s inside, it’s necessary to proceed to establish its value, which is dictated by the market. The NFT market is very volatile, which is a risk factor. It has shrunk considerably since its peak in 2021, which is something to keep in mind. 

Depending on the estimated value, an owner can choose to sell or exchange NFTs on a digital market or another platform. Alternatively, it is possible to display them in an online exhibit to draw attention and increase their value. There’s also an option to hold them in a digital wallet if one expects the price to increase in the future, be it due to increasing value or the NFTs becoming rarer with time.  

Where to find mystery boxes?

The best-known and reputable NFT marketplaces are OpenSea, LooksRare, and Rarible. Centralized cryptocurrency exchanges of a more general nature like Binance and Crypto.com offer the opportunity to buy, sell, and exchange NFTs as well. On OpenSea, the prices of NFT mystery boxes are in ETH. 

Binance’s own NFT mystery boxes are the top-selling ones on the exchange. The product descriptions – not only on Binance, but in general – can give an idea of what’s inside, albeit a vague one in many cases. Some people have been able to estimate what their chances of receiving a rare NFT are based on the description.

To buy an NFT mystery box on Binance specifically, a Binance account is needed. The category “Mystery Box” is under “Explore” in the top navigation bar. Go to “Unopened” to see which boxes are available. If there’s an interesting NFT box, click on the title to get more details. It is crucial to not forget to check factors such as the title and contract address apart from the price. To check the rarity ranking, go to “Series Content.” 

Benefits 

The boxes offer the benefits of surprise, an adrenaline rush, appeal as collectibles, and the potential for value. The element of anticipation and surprise lends the process of buying a box an added aspect of enjoyment. 

In addition, mystery boxes give buyers the potential of obtaining rare and valuable products at a lower cost than if they were to purchase NFTs one by one. Investors and collectors who want to diversify their digital collectibles are very likely to benefit from this. The worth of a limited-edition or rare NFT can increase a great deal over time.

Finally, a mystery box also capitalizes on the attraction of limited supply and exclusivity. Collectors find the mystery itself and the fact that these boxes are typically limited in number very desirable. Buying a box gives more than the asset itself; it becomes a unique and memorable experience. 

Drawbacks 

The drawbacks of mystery boxes include lack of transparency and control, the risk of a scam, volatile market conditions, and the risk of fake or low-quality items. 

The main risk associated with them is the uncertainty over the content value. The contents of the box might not have the value expected. NFT marketplaces are anonymous, which scammers can use for their benefit. There are a few fake or subpar NFTs as a result. Always check the reputation of the platform before signing up to buy an mystery box on it. Make efforts to confirm that the product is verified and legitimate. 

As NFT prices can fluctuate a great deal, there is a lot of market volatility and associated risk. 

Final thoughts 

A mystery box can pay off if you like a good adrenaline rush and the excitement of the unknown appeals to you. It’s possible to end up with a valuable item in your hands. Even if it’s not limited-edition or rare, it will still be worth something, and be used for payment in a game or exchange. It might not be for you if you’re not a risk-taker, though. So if you are thinking about getting such a box, make sure to weigh all the pros and cons.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.