Behind Visa’s $150,000 purchase of cryptopunk: NFT attacking the mainstream + discussion of three development stages

NFT’s most popular encryption punk on May 12, 2021 on display in Times Square. (Source: Getty Images )

Abstract: Why does VISA purchase cryptopunk NFT so “sacredly”? What is the butterfly effect behind a small expenditure of $150,000? What is the current stage of NFT development?

This article focuses on:

  • Significance of Visa’s purchase of NFT to the market
  • A new competitive track for exclusive digital items of NFT attractiveness
  • Question or support? Discussion on the three stages of NFT development

Significance of Visa’s purchase of NFT to the market

American multinational financial services company Visa announced on the morning of Monday (August 23rd, Eastern Time) that the company paid $150,000 to purchase CryptoPunk NFT, a blockchain art token, to increase its “historical commercial artifact collection.” In a company blog post, Visa declared that “NFT marks a new chapter in digital commerce.”

The transition of a thing from the edge to the mainstream is often associated with certain events or landmark inflection points, and encryption and blockchain have occurred at least twice in recent months:

First, we have some countries that are beginning to take Bitcoin applications seriously, and
secondly, the entire U.S. Senate is arguing whether cryptocurrency wallet service providers are brokers.

David Morris, the editor-in-chief of CoinDesk’s column, believes that Visa’s purchase of cryptopunk also marks a similar mark for the inevitable “NFT mainstreaming.”

Visa has already made a special report on the “Saturday Night Live” last year, inviting celebrities such as the NFL star Tom Brady to help out, and the scene is fierce.

The recognition mark of NFT by large financial institutions like Visa may obviously bring the perception of NFT to another level: even if it is a small expenditure of $150,000, Visa’s participation may trigger $20 million in cryptopunk. The trading frenzy in the market, and the hype train will certainly continue to move forward.

You might ask? Why would Visa pay $150,000 in such a sacred name to purchase 25×25 pixel images stored in an extremely expensive and slow database?

David Morris pointed out that I believe many people want a truly rational or utilitarian explanation. But it turns out that there are some very good reasons that are also rooted in our deep and completely irrational animal brains-some strange forces can even lead us to make major purchases that seem completely crazy.

In addition, in shopping mall competition, there is another theory that is worth thinking about. Even if you are the leader of the market and have an advantageous competitive landscape, once your competitors are making preparations that you think are weird, in time you doubt them. It’s best to follow, learn, and do some actions appropriately, in case a certain trend suddenly comes, you will be overwhelmed and lose the competition.

The development of technologies and concepts such as blockchain, cryptocurrency, and NFT is this unknown track.

Behind Visa's 0,000 purchase of cryptopunk: NFT attacking the mainstream + discussion of three development stages

     Image source: The block.com

Cuy Sheffield, Head of Encryption at Visa, said in a blog on Monday : “We believe that NFT will play an important role in the future of retail, social media, entertainment and commerce. To help our customers and partners participate, we need to buy, store, and Utilizing the infrastructure of NFT requires first-hand understanding.”

Sheffield said that cryptopunk has become a “cultural symbol of the crypto community,” and buying cryptopunk is just the beginning of our work in this field. ” Visa’s investment in the field of cryptocurrency and blockchain also includes:

  • Visa and DocuSign announced a collaboration at the end of 2015, hoping to create a verification program with the help of blockchain, and ultimately allow consumers to verify car rentals in just a few simple steps of “click, sign and drive”.

     

  • Visa and PayPal are equivalent to participating in the fifth fund of venture capital firm Blockchain Capital in June 2021, with an investment of US$300 million.

A new competitive track for exclusive digital items of NFT attractiveness

Going back to the development of NFT itself, it also reflects people’s preference for pursuing unique values, coupled with more and more transitions to online life, means that in addition to physical identity symbols such as jewelry, there is a new competition for similar exclusive digital items.

Last Saturday, the football superstar Messi launched its encrypted art NFT. The well-known designer incorporated elements that reflect the glory of Messi’s life.

Prior to this, Christie’s auctioned several NFTs, some worth millions of dollars. The auction house set a record in March, when an image created by digital artist Bepper sold for $69 million.

At the same time, many media publications including CNN, New York Times and Fortune magazine have sold their own NFTs.

Recently, Ryan Wyatt, Google’s head of global game cooperation and YouTube’s head of virtual and augmented reality business, tweeted that he is optimistic about NFT, and it is “self-evident” for NFT to take over the gaming industry. He explained that in the long run, the game industry will shift to a game model that uses memory block chains and NFTs. This model will also promote the open market of in-game digital assets and bring liquidity to digital projects that currently lack liquidity. .

In this article, Visa purchased the encrypted punk avatar. We see that the well-known American artist Jay-Z and the National Football League player Odell Beckham Jr. have recently purchased encryption for tens of thousands of dollars (at least). Punk and turned it into the incarnation of Twitter. This may be the largest use of NFT at present.

Behind Visa's 0,000 purchase of cryptopunk: NFT attacking the mainstream + discussion of three development stages

Image source: genesisblockhk.com

In China, in June 2021, Alibaba launched the payment code skin NFT on Alipay. On August 20, Tencent ’s NFT trading app’Phantom Core’ launched the second phase of digital art sales activities. In terms of effect, the NFTs launched by Ali and Tencent have been welcomed by the market.

Although the increased interest in NFTs stems from the tokenization of digital art, anything unique—even physical assets—can be tokenized through NFT.

At present, NFTs are increasingly used in the fields of art, sports, games, fashion, and music. From the characteristic point of view:

  • NFT is a non-fungible token, which basically means that it is unique.
  • NFT exists on the blockchain ledger, just like Bitcoin and ETH tokens.
  • But Bitcoin is basically the same as millions of other Bitcoins and can be “substituted.”
  • The blockchain prevents the NFT from being copied and verifies its authenticity and provenance (title chain).
  • They are unique, and this uniqueness will greatly change their value.

David Z. Morris pointed out that , in this way, NFT shopping is ultimately about identity and taste, not just money, so there is a personal factor in buying NFT, which seems to be possible to attract a wider user base.

Visa purchased one of the 3,800 female punk avatars. Cryptopunk is particularly attractive. It was issued in 2017 and is one of the first NFTs ever created. (Cryptopunk has 10,000 in total, and no two are exactly the same. Each has its own unique features and accessories.)

Question or support? Discussion on the three stages of NFT development

The global NFT started in 2017 with cryptopunks and crypto cats, and will rise in the digital art wave in 2020.

At the most basic level, NFTs are original digital files, which are auctioned and purchased through cryptocurrencies such as Bitcoin, just like auctioning a painting. Owning NFTs is symbolic ownership at best.

As a technology of cryptocurrency, NFT seems to have found a new purpose: art.

So, will NFT become the modern Van Gogh and Monet? Are these digital art valuable? Will they live up to the propaganda, or is it just a flash in the pan, like the Internet boom, NFT is a bubble that will inevitably burst? What is the current stage of the NFT market? Where are we?

Some critics in the market are skeptical of NFTs: Although such tokens represent digital ownership certificates, buyers do not own the basic goods, and Internet users can still view relevant media online. Some people even stole the works of other artists and sold them as NFTs.

Adam Rendle, a partner at Taylor Wessing Law Firm, said in a blog post: “They do not own the copyright or any other intellectual property rights in the digital artwork itself. They cannot distribute or otherwise represent Commercialization of assets.”

Some people also said that the popularity of NFT is just like the ICO market situation four years ago: NFT is taking a similar approach to ICO, perhaps more creative. A group of businessmen find cool artists to create virtual artworks, combine them into many tokens, and then auction the tokens to investors. Then these investors turned and sold on the market. There must be many tokens in the market that may be unregistered securities, without disclosure or market surveillance.

In addition, some users believe that Ethereum ‘s transaction fees make it impractical to buy and sell cheaper assets. For example, you want to buy an Avatar NFT for $60, but the transaction fee is $50, which is a considerable psychological barrier. Unlike low-cost independent chains like WAX ​​and Flow (hosting top NBA games), which mainly focus on lower-priced branded collections, they are now significant and have a real opportunity to grow from their core value propositions.

However, active NFT followers believe that, precisely because of the uniqueness of NFT, in the future, NFT may be used as a valuable technical legal tool to identify unique items and confirm the provenance and originality. As long as non-financial transactions will continue to exist, they will change the investment world forever. NFT is an exciting new development that provides a unique opportunity for digital content creators.

In their eyes, there are three stages in the development of NFT:

The first stage of NFT is a kind of social media, and people began to hold some discussions about NFT.

The NFT in the second stage will be a social scenario where people interact with others through NFT.

The third stage NFT may be used as an alternative or even the main ID, NFT will define who you are.

They believe that the current market is in the first stage, and people’s interest in the NFT product market will not fade in the short term.

NFT is a representation of the only asset, and its authenticity is verified on the DLT platform. Recently, the creation and sale of irreplaceable NFTs has become more common.

Due to the immutability of the “NFT contract”, each time the NFT assets are sold between different parties, the parties cannot “contract” the equity that the creator wrote into the NFT contract when the NFT was minted. NFT also provides potential buyers with a clear transaction history, at least theoretically traceable to the creator, making it easier to control the authenticity of the item.

All in all, NFT will change the basic rules of ownership in the digital environment (or even higher) and potentially maximize the benefits of creators. And more and more famous musicians, artists and athletes have joined this craze. In addition, people are selling NFTs for charity and reselling artworks for millions of dollars.

They believe that, in any case, the NFT market will become crazier and have a significant reputation premium.

To sum up, from the perspective of development, competition, and people’s needs, can NFT go in the long run? Does it have large-scale applicability? We are walking and watching. For more views, please leave a message to exchange.

As of now, according to CoinGecko report data, the NFT market has exploded in early 2021. The total market value of the NFT market has reached 27.9 billion US dollars, accounting for 10% of the global art market sales.

References:

1.https://www.cnbc.com/2021/08/23/visa-buys-cryptopunk-nft-for-150000.html

2.https://www.coindesk.com/why-did-visa-buy-a-150k-nft-why-does-anyone

3.https://www.thefashionlaw.com/non-fungible-tokens-are-here-to-stay-how-can-technology-law-harness-them/

4.https://www.nasdaq.com/articles/what-is-an-nft-anyway-2021-08-18

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/behind-visas-150000-purchase-of-cryptopunk-nft-attacking-the-mainstream-discussion-of-three-development-stages/
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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