Gold Rush NFT: Potential and Crisis in the Eyes of Players

Only after experiencing more cycles and crises, the community consensus behind NFT can surpass the current currency price dimension and truly lay a solid foundation at the community cultural level.

“The so-called Shengshi antiques, chaotic times gold, this sentence can be changed to Shengshi NFT, chaotic times BTC in the encrypted market .” After the price of Punk in the hands of the founder of Redline Dao rose several times, Xianglian Catcher described his opinion NFT’s view.

Since June and July of this year, with the popularity of Axie Infinity and the continuation of Cryptopunks’ rush to buy, NFT has quickly replaced DeFi as the main hot spot in the crypto market. KOLs in various industries, as well as traditional industry giants such as Ali and Tencent , have begun to deploy in the NFT field. .

First, on June 30, the chain game project Axie Infinity developed by Vietnamese game developer Sky Mavi exceeded US$1 million for the first time, reaching US$1.119 million. At that time, many people did not realize that Axie Infinity’s single-day income has surpassed the glory of Kings to become the world’s most profitable game. According to the statistics of Sensor Tower, a mobile application data analysis company, the revenue of King Glory in the first half of this year reached 1.5 billion U.S. dollars, with an average daily income of 840,000 U.S. dollars.

Since then, Axie Infinity’s revenue has continued to soar and reached a new record of $9.72 million in a single day income on July 16. The token price has also risen nearly seven times from the end of June, reaching a maximum of $2.92 billion. Under the hot spot effect of the project, NFT-based chain game projects such as Sandbox and Mobox also quickly became popular.

At the same time, avatar NFT projects such as CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins also frequently appeared in the public eye, and the transaction price continued to create new highs. Among them, the most expensive CryptoPunk was sold for 4200 ETH , which is as high as 16.38 million at the current price. Dollar.

Gold Rush NFT: Potential and Crisis in the Eyes of Players

Top 10 Punks with the highest transaction volume Source: larvalabs

It was also in July that 囧囧 bought his first NFT, namely Punk, for 35 ETH under the “instigation” of a friend. Since then, he has been out of control on the way to buy NFT, and successively bought Bored Ape yacht Club, Bored Ape kennel Club, Rivermen and other types of art NFTs, costing more than 100 ETH. Today, the market value of just one Punk exceeds 100 ETH, and other NFTs have also appreciated a lot.

Another chain game player Lin Yiyi (pseudonym), under the stimulus of Axie Infinity’s popularity and the recommendation of friends, aimed at the BSC chain game project Mobox, invested nearly 20,000 U to purchase more than 30 game NFT MOMOs. In mining and participating in game battles, due to the continued popularity of the track and Binance’s listing of its tokens, the highest book income has exceeded hundreds of thousands of dollars.

In early September, Zhang Rong (pseudonym), an investor who missed multiple rounds of NFT wealth effects, immediately decided to buy a Loot NFT with a few friends after seeing a number of media recommending Loot. Time is the price doubled, and the maximum value of the AGLD tokens airdropped exceeded $40,000.

The story of Jiaojiao, Lin Yiyi and Zhang Rong is just a microcosm of the wealth effect of the NFT market today. Almost all the early participants have made a lot of money.

So, why can the avatar NFT obtain such a high valuation? In the eyes of many industry professionals, the significance of these NFTs lies in the status symbol, especially the symbolic NFTs such as Punk, which are very attractive to KOL-style characters in the industry. However, under the exaggeration of market sentiment, more Speculators have also joined this wealth game.

“As a social person, the sole purpose of many activities and consumption is to publicly show how much energy one can waste.” BitMEX founder Arthur Hayes recently wrote an article that from an energy perspective, NFT-based art has no value at all, but it will represent The ultimate way to show social status in a purely digital world.

囧囧 also agrees with this point of view. Some friends have ridiculed him before saying, “If you have Punk, you are not an ordinary coin speculator, you are a digital nobleman.”

“In the virtual world of the future, everyone needs to have their own identity authentication. This is naturally compatible with NFT.” 囧囧 Xianglian Catcher said, “In the meta-universe, the manifestation of everyone’s identity is NFT. You have Punk, you are not a digital aristocrat, who is a digital aristocrat, and as the price of Punk rises, the label of digital aristocracy has been firmly nailed.”

As a result, users who purchase avatar NFTs such as Punk often use their pictures as their social media avatars such as Twitter and WeChat to enhance their image in social relationships, as well as to further promote the concept of the series of NFTs and increase market enthusiasm.

Due to users’ high enthusiasm for NFTs, Internet giants such as Alipay and Tencent have also launched NFT issuance platforms, jointly with IP copyright owners to issue corresponding NFTs for users to snap up, helping third-party organizations and enterprises to increase user stickiness and diversify monetization channels, such as Alipay. In cooperation with the Dunhuang Fine Arts Research Institute, the animation “Assassin Five Six Seven”, and the movie “White Snake 2: The Green Snake Rise” released the payment code skin NFT.

In mid-August, one of the development teams of the Chinese version of “Minecraft”, the “National Architect” of B station V “National Architect” also officially launched the NFT blind box based on the voxel version of “The River on Qingming Festival”, with a total of 10,000. The price is 0.04 ETH, which is equivalent to a total sales of nearly 9.98 million yuan.

Entering September, Loot’s wealth effect is even more astounding. The NFT that users receive for free has risen to nearly $100,000 in just over a week. Because the project’s NFT has the combinable nature of “Lego blocks”, it is considered by many KOLs to be “NFT building blocks” and “NFT paradigm transfer”. It is similar to the evolution from BTC to ETH in the NFT field, which also makes picture-based NFT and Chain games form a closer relationship.

Gold Rush NFT: Potential and Crisis in the Eyes of Players

Loot NFT

“Loot is the first crypto native game that can be invested; dark Forrest was the first but cannot be invested yet; Axie Infinity is not crypto native, but similar to Pokémon, not exclusively enabled by crypto.” Kyle, co-founder of Multicoin Capital Samani said after tweeting that the agency had invested tens of millions of dollars to buy Loot.

Electric Capital founder Avichal Garg regards Loot as the third important innovation of NFT. The first important breakthrough is the collection NFT represented by CryptoPunks, and the second important breakthrough is the generation art NFT represented by Art Blocks, Loot. With the “community-owned game” leading the third important breakthrough.

“This is the first time that the NFT ecosystem has value from the community rather than the creator. It reverses the current model of creating and evaluating NFTs.” Avichal Garg said, “If Loot works, it can achieve what gamers have long desired Interoperable gaming platform-carry your robes and katana with you between games, because developers finally have a way to achieve interoperability.”

Nowadays, innovation in the NFT field is still happening. At the same time, it is not an exaggeration to describe various phenomena as “crazy”. Its subsequent trends and potential risks have also attracted the attention of many industry professionals and players, especially the liquidity of many NFTs. Poor, the sustainability of market enthusiasm and other issues.

A well-known crypto analyst tweeted that he believes that NFTs are not in a bubble yet, but once they are divided and traded as derivatives on a large scale, it is when the bubble is expanding. “Big shorts and the real estate crash in 2008 are equally applicable to the future NFT market.”

Ouyang Yan (pseudonym), a player who has invested tens of thousands of dollars to buy NFTs, told the chain catcher that he believes that 99% of NFTs are bubbles and will eventually become bubbles, but in the process of new technology applications, they often actually produce a huge Bubbles, this is a very difficult rule to change.

“However, from the perspective of user volume and transaction volume, the NFT market is still in its early stages, and many traditional artists and big IPs have not yet entered.” Therefore, Ouyang Yan is still positive about the future of the NFT market.

囧囧 also said that he believes that when the market turns from a bull to a bear and the enthusiasm retreats, 90% of the NFT will be zero, but in the future all non-homogeneous assets of mankind will be recorded and circulated based on the NFT protocol of the blockchain. The value is undeniable. It is just that you need to be extra cautious when selecting NFTs and focus on NFTs with long-term value. For example, he will mainly judge factors such as community consensus, scarcity, and liquidity.

Ouyang Yan said that he mainly judges the value of NFT from the aspects of team operation ability, recognizability of works, and IP attributes.

At present, the floor price of Cryptopunks NFT has fallen by more than 30% at a higher point. The trading volume in the past 24 hours is 1240 ETH, which is nearly 97% less than the peak trading volume of 43871 ETH on August 28, reflecting a significant decline in market sentiment.

At the same time, the floor price of Loot NFT also dropped by more than 68% at a higher point, falling back to the price before the explosion on September 2.

In the long run, the fall in prices may just be the beginning of more crises faced by these NFT projects. “Like all community-owned projects, Loot will have its hype cycle and a deep valley of disillusionment is coming. It must survive at least an existential crisis-a vampire attack, a hacking attack, or a serious design flaw. If it survives , The community will become stronger.” Avichal Garg said.

The same is true for all other NFT projects. Only after experiencing more cycles and crises can the community consensus behind NFT go beyond the current currency price dimension and truly lay a solid foundation for the community culture.


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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