Mantis observation | Wen
The author | Blue moon
The NFT, which has been on fire for a year, does not seem to have been overheated in 2022.
Recently, Puma, the third largest international sports brand and a German listed company, changed its name to "PUMA.eth", which to some extent means that Puma will continue to explore the NFT world. In fact, in addition to Puma, sports brands such as Nike, Adi, Under Armour, and ASICS began to lay out NFTs in earlier times.
Before there are Lin Junjie, Jay Chou, Chen Guanxi and other big stars for their platform, call, and then there are Xinhua News Agency, CCTV network and other official media and the SECURITIES Regulatory Commission statutory media "Shanghai Securities News", and even the International Olympic Committee has entered the game, plus even sports brands have come to join the fun, is the digital collection in 2022 still in an accelerated development period?
Taking the metacosm and encircling young people, the "accelerated development period" of NFT continues
Stars such as Jay Chou and Lin Junjie joined in, as well as official media such as Xinhua News Agency, CCTV, and the International Olympic Committee, without exception, affirmed the rights and value of digital collections to the outside world, and strengthened the confidence of digital collections.
However, in the absence of strict legal provisions and restrictions in the industry, and the previous domestic restrictions on transactions in the field of digital currency, why do these organizations and individuals abandon their conservative attitudes and enthusiastically rush into this "battlefield"? In "Mantis Observation", it seems that there are no more than the following three reasons:
First, the full name of NFT is Non-Fungible Token, a non-homogeneous token, which is the only virtual currency token used to represent digital assets, with the characteristics of indivisibility, irreplaceability, and uniqueness.
Based on the nature of NFTs, on the one hand, it provides a kind of data-based "key", which can not only ensure the ownership of the purchaser and the copyright of the creator, but also allow the purchaser to easily transfer and exercise the rights. On the other hand, the characteristics of NFT decentralization have also greatly enhanced the efficiency of data asset trading and circulation, and accelerated the trend of digital assetization. Therefore, from the nature of technology and the future of development, NFTs are the trend of the times, which is one of the reasons why players bet heavily.
Second, in the post-epidemic era, young people have become a consumer group that all walks of life want to grasp.
From the "Report on the Consumption Trend of Young People in the Post-epidemic Era" previously released by Lexin Research Institute, it can be seen that in China's huge consumer market, more than 400 million "post-90s" and "post-00" young people are the most exuberant groups of consumer demand.
ODin NFT platform founder Pan Bo introduced to the outside world that the most post-95 people participating in NFT transactions, followed by 90-95 years, followed by 80,70 and 00 are very few, this is because the NFT meets the psychology of most young people pursuing mavericks and uniqueness, while stars such as Lin Junjie, Jay Chou and Curry also have a large part of the young fan group, affected by the "star effect", fans also want to understand this market and narrow the distance between them and idols.
Under such a trend, for all walks of life, NFTs seem to be becoming a "medium" close to young people. As a result, many companies and brands have gradually begun to add the new form of NFT to the promotion of the company's products. For example, the launch of online NFT digital artworks by Nesher at the sixth anniversary event was interpreted by the market as "combining with the hottest and most trendy topics of the moment, further connecting and catering to young people, and building brand power".
Third, and most importantly, NFTs still have considerable untapped potential at this stage.
According to Nonfungible data, last Q2, the NFT market traded $754 million, up 3453% year-on-year and 48% month-on-month. OpenSea, a portal with a market share of more than 90%, has also soared to $13.3 billion in the Series C financing completed earlier this year.
In addition to the platform and market size like getting the "rich script", specific to some products is also a surprising rise.
To give a few simple examples, for example, during the Winter Olympics, the ice pier can be said to be the general existence of the "top stream", and the original price of the doll is about 200, the price has increased tenfold and once there was a situation of "one pier is difficult to find". According to the data of the official trading platform of nWayPlay, the digital blind box with a limited edition of 500 ice piers was empty in seconds as soon as it was online, and even in the second transaction, there was a large price surge.
For example, on January 18, 2022, Jay Chou and his friends co-founded Chaopai announced the sale of the NFT project - Fantasy Bear, limited to 10,000 pieces, priced at 0.26 Ethereum. However, just one week after the sale, it reached a single high price of 7.4ETH, equivalent to 114975 yuan.
Catering to future trends, but also close to young consumer groups, coupled with the "wealth code", NFTs will continue to accelerate in 2022. However, one yard to one code, whether the risk value in the NFT industry is worth the risk of enterprises and individuals, but also needs to be analyzed on a case-by-case basis.
"Business" is not small but not easy to do, how should enterprises and individuals get rid of the "fate of leeks"?
Anything new, if the opportunity behind it is greater than the risk, is certainly worth trying, but if the risk is significantly higher than the opportunity, then it is best to hold a conservative wait-and-see attitude for the time being.
Through the discussion of the above, the NFT market can clearly see that this concept is not a "castle in the air" and does have its own merits, but it must also be admitted that the "golden house" of the NFT is also full of dangers.
First of all, as the price of some NFT products rises exponentially, it will naturally be noticed by some people with ulterior motives.
On February 1, a major NFT collector, Larrylawliet.eth, said on social media that a number of valuable NFT collections such as the Bored Ape Yacht Club, Mutant Ape Yacht Club and Doodles NFT were stolen by hackers, and the total value of the stolen NFTs was about 10.79 million yuan.
In fact, this is not the first case of theft, and on January 10, New York art collector and gallerist Todd Kramer posted asking for help, and his more than $2.2 million of NFT artworks have been stolen, which has attracted widespread attention.
Most of these events occur because of the risk of a user's private key leaking due to improper operation, or filling in the wrong address when transferring assets. Coupled with the fact that behind the NFT is a smart contract, in which all the operations are performed through lines of code, if these codes are not perfect, it is easy to be exploited by hackers. In this way, it is inevitable that some interested individuals will be dissuaded.
The second is moral hazard, some companies realize the value of NFTs, and then begin to use this as a gimmick to deceive users and make a profit.
For example, fake NFT websites, like Some users of MetaMask have recently encountered false ads that require users' private wallet keys or 12-word secure seed phrases, and other scammers may impersonate well-known NFT platforms to send fake emails to users, stating that someone wants to bid for the user's NFT, and asking users to click on the embedded buttons.
In addition, there are many other uncertainties, such as because the relevant policies and laws have not yet been clarified, so the NFT is extremely sensitive to this kind of information, last May, the China Internet Finance Association, the China Banking Association, the China Payment and Clearing Association jointly issued the "Notice on Preventing Bitcoin Risks" and "Announcement on Preventing the Risk of Virtual Currency Transaction Speculation", which strictly prohibits virtual currency speculation.
Soon, the cryptocurrency market was shaking downwards. Overall sales on the NFT track plummeted from a high of $176 million to $8.6 million, a 95 percent drop. Therefore, when the relevant policies are introduced, it can be predicted what kind of turbulence the industry will usher in, and enterprises and individuals also need to be prepared in advance.
In such a risk package, how can enterprises and individuals smoothly and safely step into the "golden house" of NFT?
For individuals, when exploring the NFT market, we must not take chances.
NFT is somewhat similar to "brushing", every user who downloads the brushing software, not unaware of this scam, but feels that "I must not be the last", and finally was successfully cut leeks.
The same is true in the NFT market, considering the mentality of some speculators, some traders will let their team buy it after releasing the work, resulting in the illusion of "short supply", attracting some users who want to buy a future with a cup of milk tea to buy and sell at a high price. Therefore, when users do not consider the value of the collection, but want to "make a windfall", they must polish their eyes and cannot hold the fluke psychology of "I am not the last receiver".
For enterprises, on the one hand, it is best to combine high-quality projects as much as possible, such as well-known artists and IP, to increase users' recognition of the value of this NFT work itself.
For example, on March 11 last year, Christie's auction house sold artist Mike Winkelmann's digital collage "EVERYDAYS: THE FIRST 5000 DAYS" for $69 million, which was recognized by the market for the author's popularity and the work's novel creative concept.
For example, in September last year, the KAWS series of blind boxes was launched on the Gate.io NFT Magic Box platform, and each batch of blind boxes was snapped up within two minutes of going online, which has a greater connection with KAWS being a high-level player-level trend toy.
On the other hand, enterprises can innovate on the basis of NFTs, such as the previous "NFT + blind box", the original "unremarkable" NFT works, the uncertainty, surprise, and derivative collection value brought by the "blind box" after being blessed, and there are traces to achieve "multiplication of value".
Take the Little Yellow Duck Commemorative Blind Box issued by the Huobi NFT platform in August as an example, which is divided into three types of card collectibles, from low-level to high-level, which are N card, SR card and SSR card. The official price of this blind box is 99 yuan, but in the actual transaction, the price of the SR card reaches 5,000 yuan, an increase of 50 times. The price of the drawn SSR card was 9666.66 yuan, up nearly 100 times.
All in all, celebrities, institutions, enterprises before and after the successive into it, film, art, luxury industry has also begun to integrate with the NFT, are showing the value and attractiveness of its own characteristics, but the early stage of market development is not only a beautiful narrative, artificial risk, moral hazard and uncertainty will be tightly wrapped, the risk behind it is not less than the opportunity that may be contained, in the "Mantis Observation" view, before there is a system introduced, the industry has not embarked on the road of benign development, Individuals and businesses also need to be more cautious.
*The pictures in this article are from the Internet