Avatar NFT crash is imminent? The culprit was Loot

The magpie chirped, Loot took off and the holder laughed.

Recently, an NFT project called Loot suddenly became popular. Within a week or so of launching, overwhelming news came oncoming. Even the friends who don’t pay much attention to investment in the circle can feel the light and heat emitted by the burning of Loot’s fire.

Why is Loot hot? The people who eat melon don’t know why. But like everything that suddenly became popular, a huge controversy like tearing followed.

Supporters said: “Too awesome! Loot to the MOON!”

Opponents said: “Too SB! Eight lines of txt text on black background and white text can also be NFT?”

But in any case, Loot was just like that. According to data from DappRadar, as of September 3, 2021, the total transaction volume of the NFT project Loot (for Adventurers) has reached 110 million U.S. dollars, surpassing Parallel Alpha and becoming the tenth largest NFT collectible project in total transaction volume.

Previously, the 100 million yuan auction of several pixel avatars of CryptoPunks was still vivid, but the rise of Loot slapped this “front wave” severely on the beach. Loot’s 24-hour trading volume ranks first, while CryptoPunks has fallen out of the top three.

There is no suspense about the crash of the avatar NFT

On September 3, Jiang Zhuoer issued a post predicting that the avatar NFT will collapse within 20 days. He said: “The crash of the avatar-like NFT is no suspense. The difficulty is only to predict when it will crash.”

There is no suspense as to why the crash is said to be, he pointed out that microscopically, the crash is determined by supply and demand. The demand for NFT (admission funds) is limited, and the supply (avatar artwork) is unlimited. Any painter can easily draw (or even use programs to generate) a large number of avatars, as many as you want. A JPG avatar is worth 100 ETH ~ 1000 ETH (2.5 million ~ 25 million RMB) is very absurd, it is a typical blogger.

He further pointed out that the emergence of Loot (text NFT) directly pulled the supply to infinity, which was a landmark event of the collapse of the head-like NFT. The demand for avatar-like NFTs (admission funds) will deplete much faster than ordinary funds due to lack of retail investors.

Jiang Zhuoer’s analysis is inspiring.

If a thing can be copied at will in a few seconds, what other “takers” are willing to spend a high cost to buy? Although on the surface, there are currently many “high-end” investors that have already made arrangements. And in their minds, avatar-like NFTs are high-end luxury goods, and too much money is a good idea.

The head portrait NFT is the Ferrari of the automobile industry and the Estée Lauder of the cosmetics industry, and it has obviously become a status symbol.

We all know that in the circle of high-end people, it is common to buy a brand-name bag at a high price, but if you buy an A and find it is just like the emperor’s new outfit. Who was embarrassed after the window paper of the head NFT was pierced?

However, for most ordinary people, the situation may be completely different. Perhaps, a 5-second copy is the most powerful weapon for changing the style. They don’t care about their status, as long as they are fun, and many people even bluntly said that they were copied.

And the appearance of Loot seems to fill the market with Ferrari and Estee Lauder, undoubtedly impacting the inherent system/gameplay to perfection.

There is nothing new under the sun

Not long ago, Lieyun Finance consulted Lao Li, a veteran in the industry on investment in NFT. He said that the industry is too deep, and it is left-handed and right-handed to speculate prices. What is really bought is the capital behind for speculation.

When browsing some NFT trading platforms, Lieyun Finance also found that high-value transactions are not necessarily real, and the left-handed and right-handed business is indeed very obvious.

For example, in the screenshot below from a certain NFT platform, you can take a look at it.

Avatar NFT crash is imminent? The culprit was Loot

Some people may say, what happened to the high price, what happened to the same user repeatedly bidding? If these can be ignored, then I really have nothing to say.

We know that too high prices will naturally shut out small capital. In order to pull Xiaosan into this “prosperous carnival”, fragmentation is an ideal solution proposed by people. But to this day, fragmentation does not seem to be tepid.

Public information shows that on August 28, Warriors star Curry spent $180,000 to purchase the NFT work of Boring Monkey BAYC and replaced his personal social media avatar with this monkey. And Justin Sun, who is known as a marketing genius, spent 10 million to buy an NFT WeChat avatar.

Their participation has added another fire to the popularity of avatar-like NFTs, while Xiaosan’s participation is not high. It can be said that the celebrities have spared no effort on the road to spend money like the earth, and the Midi Mimei is beyond the reach of the dust on the way to chasing stars.

As Lao Li said, the transaction volume of the NFT market has increased significantly, but most of them are still playing with big capital, and they are also among the top ones. And CryptoPunks and Boring Monkey BAYC are among the “outstanding ones”.

However, Jiang Zhuoer pointed out sharply that NFT is a non-homogeneous token. Once a crash occurs, the liquidity of NFT will be instantly cleared. From the value of hundreds of ETH to worthless, only a single thought. What will it be like on the day when the avatar-like NFT crashes?

Jiang Zhuoer said that there is nothing new under the sun. Searching for the 2017 CryptoKitties is a lesson for the past.

CryptoKitties are back

Encrypted cat is a game of raising and breeding electronic cats. Players must purchase electronic cats with Ether . At that time, the price of encrypted cats once reached 750,000. From 2017 to 2018, CryptoKitties accounted for the vast majority of NFT transactions, but it gradually became silent.

On September 3, according to DappRadar data, in the past 30 days, CryptoKitties showed very obvious signs of return to popularity. Both users, transactions, and transaction volume have increased, especially the number of users increased by 71.6%.

Avatar NFT crash is imminent? The culprit was Loot

What kind of curve the CryptoKitty will go out of in the future, may only be God can give the perfect answer. Maybe it suddenly became hot again, maybe it went silent forever.

In the currency circle, everyone has become accustomed to some peculiar events. Some people even believe that the money really comes from the wind! Recently, the sudden surge of NFT tokens has added surprises to investors. From Moments to Weibo, the majority of coin users are discussing NFT with enthusiasm. Someone called out: “This increase is really okay!”

And on August 31, former US President Trump also stated that investing in cryptocurrency “may be a disaster waiting to happen.” He also said: “I am not a big fan of cryptocurrency”.

There are too many stories in the currency circle, or it can be called a legend, or it can be called outrageous! Used to it!

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/avatar-nft-crash-is-imminent-the-culprit-was-loot/
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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