On May 4, according to data from the data website NonFungible cited by the Wall Street Journal, the sales of NFTs fell further this week, reaching an average of 19,000 per day, which was a 92% drop from the 225,000 sales in September last year. Although everyone has prepared for the bubble in the NFT market, this wave of cooling is still earlier and bigger than expected.
What blocked the pace of NFT’s crazy expansion and awakened the rationality of “leeks”? Will this wave of cooling affect the country? Will there be the next market “darling” after the NFT collapse?
The insurmountable “Red Sea”
I once asked my friends in the industry a question: why are there so many people playing the blockchain? Its essence lies in the public’s “profit-seeking” demand. So, other than blockchain, can’t meet the public’s “profit-seeking” needs? Yes, or rather difficult.
Some time ago, “Ali’s market value evaporated by more than 3 trillion yuan” is still fresh in my memory, and keywords such as “Internet winter”, “large factory layoffs” and “Internet bottleneck period” are frequently screened. Leaving aside the “internet winter”, the fact is that in today’s Internet, it is more and more difficult to innovate. Is the IQ of the people really so unbearable? This is not the case, otherwise, why has China achieved a historic leap in people’s life from insufficient food and clothing to a generally well-off, and towards an all-round well-off in just a hundred years? The fundamental reason is that the centralized Internet class is solidified. Large companies hold most of the resources and customers. Small companies can only struggle on the line of food and clothing. Even if they have innovation and ideas, they cannot cross the current “Red Sea Zone”. The most typical of them is the Internet big data + money burning + monopoly model. Take a look at the major APPs that are commonly used in your mobile phone. How many are not raised in this way?
The Internet paradigm is constantly upgraded and iterative, web1.0, web2.0 to the longing for web3.0. Each iteration is not only an improvement of user experience, but also a reshuffle of the wealth class. We all know that a core feature of blockchain is decentralization. Only in this way can the public cross the “Red Sea” and have the opportunity to break down class barriers. People tend to pursue it because of fair opportunities, and the result is another story.
rich man’s game
Go back and look at NFTs. It was reported on May 2 that after Zhu Xiaohu and Cai Wensheng, LinkVC founder Lin Jiapeng and Tongzhou Capital founding partner Zhang Dao purchased a “Boring Ape” NFT respectively and joined the “Boring Ape Yacht Club”. A few days ago, Li Ning, Then announced the choice to join hands with the boring ape to launch a variety of co-branded products…
A “Boring Ape” is valued at US$4 billion, and the B side is the loss of 98% of players, and some even reach one million. In the final analysis, it is always the ordinary investor who gets hurt in the end. With the entry of large, professional investors or corporate institutions with a lot of resources, this once “blue ocean” has gradually turned red, and the Matthew effect has become more prominent. More and more ordinary speculators rather than investors have realized that they are just leeks and left the market in the fluctuations again and again, and began to look for the next blue ocean market.
neglected objective existence
Apart from market reasons, NFTs born out of blockchain technology cannot escape the laws of the technology curve. Throughout the country and abroad, since the NFT market has become popular, it has also been lacking in technological innovation. Digital artwork has not been able to make good use of NFT’s certification and traceability functions. Music NFT has not seen any actual progress in the past year, not to mention websites, domain names, etc., and in other fields, it has not been seen so far. The application prospect of NFT.
So will this wave of cooling affect the domestic digital Tibetan industry? Very small, or at least not at all. One is the blocking and delay of information at home and abroad; the second is the difference in the nature of NFTs at home and abroad. Foreign NFTs have strong financial attributes and are a buyer’s market, and their prices are affected by market supply and demand; domestic digital storage is a localized improvement of foreign NFTs, which weakens the financial attributes. At present, it is mainly a seller’s market, and its price is less affected by market fluctuations. Third, this wave of cooling is the epitome of the development of the entire industry. If the domestic data collection continues to move forward, it will eventually reach the same destination unless it goes to another fork in the road before this node arrives.
The tuyere is always changing, the sickle is always new, and the discussion around the tuyere and hot spots has never stopped. After NFT, there must be the next market “darling” waiting for people to discover. Returning to the present, industry insiders predict that NFTs will always exist, and there will be explosions, but 99% of them are rubbish. When the top-level bubble is removed, the entry of professional institutional investors may usher in a more professional and large-span development of the industry, but this will no longer be a game for ordinary players.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/did-your-nft-make-money/
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