China Digital Collection (NFT) Market Analysis Summary

This article summarizes various gameplays, related problems and risks in the market and the future development direction of the market. It is worth reading. The longer reading time of this article is about 5 minutes.

1. What is a digital collection (NFT)

In foreign countries, digital collections are collectively referred to as NFTs, that is, non-fungible tokens, which encrypt a picture, electronic album or other digital works through blockchain technology, making it unique. Unlike digital currencies such as Bitcoin, which can be continuously divided, NFT emphasizes that it is the only asset that cannot be divided. To put it simply, NFT is to use blockchain technology to add “anti-counterfeiting code” to a work, making it a unique digital token, so digital works can be traced back to the source, clear copyright and trade. . On June 23, Alipay launched the first NFT trading skins Dunhuang Feitian and Nine-color Deer in China, with a global limited edition of 16,000. The NFT is issued based on Ant Chain and has a unique code exclusive to Ant Chain. The two skins were instantly sold out on the day they were released, and the popularity was unprecedented. On October 23, on the inside pages of the Alipay applet “Ant Fanli” and Tencent’s NFT distribution platform “Magic Core”, the words “NFT” disappeared and were changed to “Digital Collection”. Ant Chain defines “digital collections” as “virtual digital goods”, and Tencent Magic Core defines “digital collections” as “virtual proof of rights and interests”, both of which emphasize that they do not have the attribute of “virtual currency”. At the same time, both sides emphasized that as “virtual items”, once the digital collection is exchanged, it does not support return or exchange.

2. The core value of digital collection (NFT) lies in the following three aspects

One is to capitalize digital content. Under the current Internet, we only have the right to use digital content, and we cannot truly make digital content our assets. The emergence of digital collections (NFTs) has broadened the boundaries of digital assets. Digital assets no longer just refer to digital currencies. Any unique asset can be cast into digital collections (NFTs), whether physical assets or various Digital content, such as pictures, audio and video, game props, etc., which improves the tradability of digital content.

The second is to rely on blockchain technology to ensure the uniqueness, authenticity and permanence of assets, and to effectively solve the problem of right confirmation. This has three advantages. First, decentralized storage ensures the permanent existence of assets and will not disappear when the centralized platform stops operating; second, it provides new ideas for intellectual property protection; third, it improves the efficiency of asset transactions And reduce transaction costs (such as the cost of authenticating collectibles), enhance the liquidity of assets, and attract more buyers of digital assets to conduct trading activities.

The third is that the decentralized trading model improves the commercial status of content creators to a certain extent and reduces the commission share of the centralized platform. Through smart contracts embedded in digital collections (NFTs), creators can obtain continuous royalty income from subsequent transfers.

3. Analysis of digital collection (NFT) distribution platforms

As the digital collection (NFT) market is hot, distribution platforms have sprung up one after another. According to incomplete statistics, there will be as many as 38 domestic digital collection (NFT) distribution platforms in 2021. According to the distribution quality and quantity of collections, platform traffic, collections Considering the comprehensive factors such as cultural connotation and blockchain technology level, the severable sale platform can be divided into three echelons:

There are 8 platforms in the first echelon, namely: Whale Scouting, Magic Box, Lingxi Digital Collection,, Red Universe, Dongyiyuandian, Hongdong Shuzang, and Maruka. These eight platforms have listed companies behind them. figure. There are 6 companies in the second echelon, namely: Unique Art, Guizang, Nestle Wenguan, Blue Cat Digital, Excellent Copyright, and IBOX. There are 25 companies in the third tier. The specific list is as follows:

List of digital collection distribution platforms

China Digital Collection (NFT) Market Analysis Summary

China Digital Collection (NFT) Market Analysis Summary

China Digital Collection (NFT) Market Analysis Summary

China Digital Collection (NFT) Market Analysis Summary

China Digital Collection (NFT) Market Analysis Summary

China Digital Collection (NFT) Market Analysis Summary

4. Types of digital collections (NFTs) for sale, representative collections and popularity of collections

In 2021, major platforms will issue a wide variety of digital collections, including various cultural types:

China Digital Collection (NFT) Market Analysis Summary

As far as I know, the popularity of digital collections (NFTs) can be divided into three levels:

1. The most popular in the market: cultural relics 3D model collections, aerospace 3D model collections, intangible cultural heritage 3D model collections, music collections, avatar collections.

2. High market popularity: animation 3D model collections, trendy play 3D model collections, sports collections, and card collections.

3. High market popularity: Chinese painting collections, oil painting collections, photography collections, e-sports collections, and film collections.


5. Number of digital collections (NFTs) sold, market value, and average selling price

In 2021, about 4.56 million items will be sold on each platform, the total circulation market value will be about 150 million, and the average selling price will be about 33.33 yuan. Take the platforms with large circulation as an example:

  • WhaleTalk, as of December 28, 2021, there are 2,668,722 digital collections with a circulation greater than 1, a total circulation market value of 51,119,115.81 yuan, and an average selling price of about 19.15 yuan.
  • Magic Core, as of December 30, 2021, there are 20,450 digital collections with a circulation greater than 1, of which: 15,130 are sold at fixed prices, 5,326 are issued for public welfare activities and other publicity activities, the market value of the circulation is 1,545,460 yuan, and the average selling price is about 102.14 yuan.
  • Unique Art, as of December 30, 2021, there are 119,000 digital collection blind boxes with a circulation greater than 1, the total circulation market value is 3,558,100 yuan, and the average selling price is about 29.9 yuan.
  • IBOX, as of December 30, 2021, there are about 57,396 digital collections with a circulation greater than 1, the total circulation market value is about 8,667,254 yuan, and the average selling price is about 151.1 yuan.
  • You copyright, as of December 30, 2021, there are about 59,706 digital collections with a circulation greater than 1, the total circulation market value is about 4,061,034.7 yuan, and the average selling price is about 68.01 yuan.

6. 2021 digital collection (NFT) distribution model and representative platform

In 2021, the digital collection (NFT) distribution platform, in order to attract the attention of domestic players, has created a variety of distribution models, which can be divided into three basic models:

(1) Collection mode

1. The circulation is small and the price is high. (Phantom Core, Meta Vision)


Magic Core “Digital Cheats Above One Person”


Maruka “Through the Winter and Embrace You”

Some platforms represented by Magic Core and Metavision allow favorite consumers to purchase and collect by issuing digital collections (NFTs) with strong IP traffic. However, it is reported that Zhixin Chain believes that the lack of secondary trading will lead to a lack of market-oriented price discovery mechanism, and it cannot effectively stimulate the production or creation side. platform to undertake secondary transactions.

2. Synthetic gameplay, inclusive empowerment (Pill Card)

Here we have to mention a platform, which is the pill card platform developed by Beijing Haina Nebula Company. The platform releases digital collections (NFT), mainly film IPs, and digitally distributes the props in the film. At the same time, multiple props are digitally collected. (NFT) can synthesize the movie poster digital collection (NFT), and empower the synthesized movie poster digital collection (NFT), as long as everyone who holds the movie poster digital collection (NFT) equally divides 1 of the fixed-date box office of the movie % is divided, so that although the digital collection (NFT) has no circulation hype, consumers’ wallets get blood back, and this conscientious platform will soon be out of the circle.

(2), the transfer mode 

1. Large circulation and low unit price. (whale scout, spirit rare)

Some distribution platforms represented by Whale Quest and Lingxi Shuzang choose to take the popular route with the help of their own strong traffic. The number of digital collections (NFT) issued per issue ranges from 6,000 to 10,000, and the general collection price is 9.9 19.9 yuan for 3D ordinary collections, 29.9 yuan for 3D high-end collections, digital collections (NFTs) held for 180 days and can be transferred to increase, but after the transfer is obtained, the second transfer can be made after holding for 2 years. Circulation can greatly reduce the risk of speculation.


Whale Detective “The Awakening of the Mountain” Litang Series


Lingqishu Collection “Dragon Horse” Mountain and Sea Magical Animals Series

2. Special number, lottery empowerment. (Gui Zang, Dong Yi Yuan Dian)


Dong Yi Yuan Dian “Super Space Station Series”

Taking the two platforms of Guizang and Dongyiyuandian, which have been popular recently, as examples, when consumers buy digital collections (NFTs), the collections display not only the hash value (blockchain logo), but also digital collections (NFTs). (i.e. 1,000 identical digital collections (NFT) are issued, numbered 1-1000), through the digital collection (NFT) issue numbers such as: 111, 222, 1234 and other special numbers for physical gift empowerment and other digital collections ( NFT) airdrop empowerment, all digital collections (NFT) are held for 15 days or 180 days, and can be transferred to increase, thereby promoting market circulation and attracting traffic.


Guizang “One Zen Little Monk Series”

3. Collections are synthesized and entered into the Metaverse. (Dong Yi Yuan Dian, Red Cave Number Collection)


“The Promise Panda Series”

In 2021, not only the digital collection (NFT) market will be hot, but also the metaverse market. Some platforms represented by Dongyi Yuandian and Hongdong Digital Collection will promote consumers who purchase some digital collections (NFT) on their platforms, Through synthesis, digital collections (NFTs) gain priority to stay in the relative metaverse world, thereby promoting platform sales.


Dong Yi Yuan Dian “Machine and Emotion Series”

(3) The secondary market model

1. Small circulation, high unit price (IBOX)


IBox “Teddy Bear” Blind Box


Blue Cat Digital “Encryption Xiaoming” Blind Box

IBOX belongs to the earliest batch of digital collection (NFT) distribution platforms. It uses a distribution model that is vague and expensive. The number of digital collections issued per issue ranges from 100 to 2000, and the price ranges from 69.9 to 999. The secondary market is open. , allowing real-time transaction circulation. Although IBOX is open to the second level, the number of works released on this platform is small and the price is high, resulting in the situation of breaking the sale from time to time.

2. Blind box sales, graded empowerment (Blue Cat Digital, OneMeta)

Some platforms, represented by Blue Cat Digital and OneMeta, divide digital collections (NFTs) into multiple levels and put them into blind boxes for sale in descending order, and randomly obtain digital collections (NFTs) of different levels by purchasing blind boxes. Different levels of empowerment are carried out for digital collections (NFTs) of different levels. The higher the issuance level of digital collections (NFTs), the less the quantity and the better the empowerment. At the same time, the secondary market will be opened to allow real-time trading and circulation.

3. Fragment Blind Box, Synthetic Arcane (Unique Art) 

The only art platform is the digital collection (NFT) distribution platform with the largest traffic today except Alipay. Fragment a complete digital collection, divide it into 6-8 pieces and put them into blind boxes for sale, and set the number of pieces to decrease in turn. At the same time, the secondary market will be opened to promote fragmented transactions, and digital collections (NFTs) will be synthesized and put on the chain within a specified time period, and at the same time, empowerment will be given.

There are also various forms of empowerment:

  1. Physical empowerment
  2. Pre-emption rights for other digital collections
  3. Qualification to stay in the Metaverse
  4. Secondary market transaction fees are divided.
  5. Offline Artwork Exchange Tickets, etc.


The only art “Dunhuang A dynamic composite map”


Unique Art “Dunhuang Dance Music Diagram Dynamic Synthesis” and Empowerment VII. Digital Collection

(NFT) market related problems and risks

1. Compliance issues of the offering platform

As of the end of 2021, only Hainan International Cultural Artwork Trading Center has issued a digital art trading license, which is authorized to (self-operated by Haiwenjiao) and NFT together, including other digital art such as whale scout and magic core. There is no way to know whether the collection (NFT) sale platform has a digital art trading license.

2. Lack of regulation in the market

As the digital collection (NFT) market is just emerging, various rules and regulations are not perfect, and the responsibilities of market supervision are not clear, some platforms or individuals take the opportunity to open the secondary market of digital collections (NFT), disorderly hype; also open blind box gameplay, It is purely a gambling game. Players who drive to the limited edition are smiling, while those who open the regular model are full of sad faces. This situation has attracted a large amount of social capital to enter the market, build a distribution platform, and sell it at will, and some platforms even sell two works before closing their doors and running away, changing their identities, and “singing on stage” again.

3. Consumer ideology and cognition

Consumers who buy digital collections (NFTs) are mainly young people in the age group of 18-30. Most of these people are school students and have no source of income; some consumers are just graduated from college and have accumulated money from work. Some consumers with deposits, they believe that digital collections (NFTs) will be the next wealth-making window like Bitcoin, regardless of whether the offering platform is compliant or not, whether digital collections (NFTs) can be circulated, digital collections (NFTs) ) is there any artistic value, but any platform that sells digital collections (NFTs) will have no brains as long as new collections are listed. It is understood that some consumers have spent more than 500,000 yuan on the purchase of digital collections (NFTs), betting that the country will open up the second level in the later stage, hype it, and become rich overnight.

4. Digital collection (NFT) quality issues

All major distribution platforms, regardless of the quality of the digital collections (NFTs) sold, whether they have cultural and artistic value, as long as the issuer’s background information, as long as the issuer has the strength, regardless of whether the product has cultural and artistic value, can be cast into digital collections ( NFT) for a large number of sales; at the same time, there are also cases where artworks are repeatedly sold on multiple platforms.

5. Market risk prevention and control issues

Up to now, some sales platforms that have opened the secondary market have used their funds for the sale of digital collections (NFTs) to control the open secondary market, deliberately inflated the prices of collections, and sold digital collections (NFTs) or activities in the primary market. Freely distributed digital collections (NFTs) are hyped at high prices, thus prompting consumers to enter the market, thereby obtaining investment by virtue of traffic, and because there are no restrictions on transactions in the secondary market, the price of collections in the secondary market can be increased by more than 10-2000 times. , The market does not have any risk prevention and control, prompting many consumers to receive quilt covers at high prices and cut leeks.

6. Platform technology storage risk

Most of the distribution platforms do not have their own blockchain technology. By cooperating with companies that have blockchain technology, there will be risks. When the cooperation between the two companies stops due to some factors, the consumer purchases How digital collections (NFTs) will be appreciated and circulated.

my country is expected to open the carbon neutral indicator purchase service in 2022. Major Internet users and other large electricity consumers need to purchase indicators before they can purchase commercial electricity. Although blockchain technology can ensure that the data on the chain is not lost, in the case of power curtailment The survival of the next platforms will be the next risk for the digital collectibles (NFT) market.

7. The impact of quantum computer technology

If an attacker controls more than 50% of the computing power of the entire network, he can tamper with his transaction records, which may happen when quantum computer technology is implemented.

8. The future development direction of the digital collection (NFT) market is expected

First, although there are currently no strict legal regulations and provisions on the auction of digital collections (NFTs), digital collections (NFTs) use the same technical foundation as homogenized tokens. In the future, there will be regulatory intervention in the casting, distribution, sales and circulation of digital collections (NFTs).

The development path of the second digital collection (NFT) in China will follow a business model different from that of overseas markets. Chinese enterprises will start more from copyright protection, give full play to the digital property right certification function of the digital collection (NFT), and emphasize the currency-free digital collection (NFT). NFT) exploration.

Third, a number of companies in Beijing are applying for digital art trading licenses, but due to the cumbersome license review process, a second digital art trading license will not be issued in a short period of time.

The fourth is to curb hype, and the pilot of the secondary market for digital art trading, which is approved and opened by the government, will be launched in 2022. This will greatly compress the secondary market space opened in violation of regulations, and bring digital collection (NFT) transactions back to the right track.

In the future, the digital collection (NFT) market will usher in a new round of outbreaks under the conditions of compliance.

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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