The wealth effect of celebrities buying NFT business experience at high prices

This year’s cool and low-key way of showing off wealth is no longer driving a Lamborghini and holding a Rolex in your hand, but buying an NFT picture and quietly changing your social media avatar to surprise everyone.

Look, NBA star Stephen Curry bought a picture of a monkey for $180,000 as his Twitter profile picture. Yesterday Justin Sun bought an NFT portrait for US$10 million, which is the most expensive WeChat portrait in history.

Some people say that if a celebrity has money, it is willful, just for fun! Some people say that NFT continues to be popular all over the world, and this is performance art. However, in the market atmosphere where international giants are vying to enter the NFT and the traffic IP is crowded to buy the NFT, there must be a deep meaning behind it!

1. Why do top VCs invest in NFT?

NFT is the representative concept of this year’s encryption circle. It is extremely topical and at the same time shows a strong ability to attract money. It has attracted many VCs at home and abroad to bet, including Tencent Ali, Andreessen Horowitz, and a16z.

1-1. Unicorn in the field of NFT: Opensea

At present, OpenSea is in a leading position in NFT collections, and no other market can match it. According Dune Analytics, and only in August, the site in Ethernet Square turnover on the more than $ 3 billion.

What can you buy and sell on Opensea?

Of course, it is all kinds of NFTs, such as encrypted artworks, such as music made into NFTs, such as Ethereum domain names, such as NFTs for various membership rights, virtual land or props for various chain games, etc. Of course, the least is all kinds of collectibles, such as the familiar Punk, monkey, penguin, etc.

The capital behind Opensea

A few months after the launch of OpenSea in 2017, it announced a $2 million seed round led by Founders Fund. In March 2021, Andreessen led the company’s $23 million Series A financing, with Ron Conway, Mark Cuban and others also participating. The new B round investors also include Michael Ovitz, Kevin Hartz, Kevin Durant and Ashton Kutcher.

OpenSea has won the support of venture capital firm Andreessen Horowitz (a16z) and other institutions in the new round of financing. After this round of financing, OpenSea’s valuation reached 1.5 billion US dollars.

2. The wealth effect makes the NFT market ferment rapidly

From the point of origin, the earliest NFT project can be traced back to 2013, but 2017 is recognized as the first year of NFT. This year, the representative work of NFT, “CryptoKitties” (CryptoKitties), has taken the world by storm, and has also made the concept of NFT popularized on a large scale.

In the second half of 2020, DeFi, the concept of decentralized finance, has successfully made its way out of the circle. In 2021, the hot spot will be replaced by NFT and become the “engine” of the encryption circle. The concept of NFT continues to be popular around the world, attracting a large number of international giants vying to enter the game for gold. Driven by the wealth effect and leading companies, the NFT market is rapidly fermenting, and more and more companies are also entering the NFT, with the intention of disturbing Make money by attracting money.

The wealth effect of celebrities buying NFT business experience at high prices

 (Burn the live screen of “Mornos”)

3. The business experience of celebrities buying NFTs at high prices

3-1. Curry’s 180,000 monkeys and Justin Sun’s 10 million WeChat avatars

On August 28, Warriors star Stephen Curry spent $180,000 to purchase BoredApeYachtClub (BAYC) NFT works, a monkey avatar, and replaced his personal social media avatar with this monkey.

The wealth effect of celebrities buying NFT business experience at high prices

Justin Sun promotes NFT due to ecological layout

Justin Sun is the top Internet celebrity in the encryption circle and an entrepreneur. He has his own blockchain public chain and is in the field of NFT

Funds have also been laid out. In March of this year, Justin Sun founded the JUST NFT Fund, which is positioned to focus on top artists and artworks. Through high-priced consumer behavior, attracting traffic inside and outside the circle, hitting the iron to release your own NFT works, or bringing your own NFT industry, this may be the real reason why Justin Sun and Curry bought social avatars at high prices!

At present, most NFTs in the market have the phenomenon of “gimmicks driving up prices”, “crazy marketing in the circle, and red eyes outside the circle”. The entire market is constantly being lifted under an excessively high expectation, showing a kind of stock market crash The scene of the former false prosperity.

4. Performance art is more like money making art

4-1. What is NFT?

The full name of NFT is Non-Fungible Tokens, which is generally translated as non-fungible tokens. It is an entry in the blockchain and is a decentralized digital ledger technology for encrypted currencies.

Because of the irreplaceability of NFT, it can be used to represent unique things, such as original calligraphy and painting works collected in museums or land ownership. Any NFT token is irreplaceable and indivisible. When you buy an NFT token, it means that you have obtained its indelible ownership record and the right to use the actual assets, such as the monkey head image purchased by Curry , Can be copied, but the actual owner is Curry.

NFT is a unique asset in the digital world. It can be bought and sold. It can be used to represent some commodities in the real world, but its way of existence is intangible. So far, most of them are digital art works, and some are common such as JPEG and PDF. Format packaging. The uniqueness and circulation of NFT allow creators to use NFT to prove their copyright or ownership after discovering that their work has been infringed.

4-2. The properties of NFT ushered in the demand for monetization

NFT has its unique advantages in copyright protection. Through the blockchain, not only the transactions of artworks are faster and more convenient, but the cost of identification is also greatly reduced, making the transactions of artworks more secure.

The trading threshold of NFT products is not high. Even if you don’t know the art field, you can still collect. Artists don’t have to distribute works through auction houses and art markets. Through the blockchain platform, everyone can participate in the art market. middle.

The low barriers to participation and high returns have attracted many artists to explore the NFT field. They mint their art work to make it an NFT artwork and distribute it on the primary market. If someone buys the NFT, it is very likely that they will enter various platforms in the secondary market. Once again Circulate, and in every transaction, the platform can also profit from this. The “multiple wealth effect” attracted platform agencies, artists and traffic IPs to come together.

5. Write at the end

Behind the sky-high social avatar is the wealth game of a few people in the NFT field. With the popularity of NFT out of the circle, ordinary investors can just have an eye addiction. The relevant mechanisms of the entire market have yet to be improved. Market speculation and speculation are high and risky. It is no easy task to benefit from it through investment.

But what is certain is that NFT is a new outlet for technology and innovation with future value. You can follow the giants to wait and see and learn without betting.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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