NFT originated in the financial field. In the early days of cryptocurrencies, the financial attributes of FT brought the earliest wave of non- fundamental groups (cypherpunks) in the circle. However, for a long time, practitioners in other fields just stepped in with one foot and hesitated. This year, the fervor of NFTs slashed through the obstacles in front of them like a knife and axe, and it became a common practice. Auction houses auction all kinds of works every day, and all kinds of athletes, fashion singers, and brands are also rushing to launch their own NFTs. Every day, there are news of major brands entering the NFT first. Brands such as Louis Vuitton, Porsche, Coca-Cola, etc. have all released NFT collections this summer, and NFT has brought the entire pan-entertainment circle! The creation of digital assets has entered the mass era.
The technical characteristics of NFT are very different from FT. The meaning and value given to the two are very different. This article explains how NFT, a token, can better capture value from the Dao level, and obtain more for the project party and participants. income.
Don’t you think but they think
This artwork is well-made, with first-class color matching, composition and style, but the price and transaction volume are extremely low, no one even participates in the transaction, and there is almost no liquidity. Another set of artworks have rough lines and odd compositions that don’t look aesthetically pleasing in any way. Our perception and thinking about a thing have our own strong subjective judgments. The value of this thing to us is actually equal to its utility to us, which may be subjective or objective. But in the field of economic circulation, especially in the secondary market of NFTs, the premise of whether we can transfer the benefits at high prices is the subjective valuation of this set of NFTs by others.
Maybe most people have similar perceptions of beauty. As shown in the picture below, most people think that the picture on the left is obviously more beautiful than the picture on the right, but the price on the right of the actual market value is 40 times that of the picture on the left. But in the field of NFT, whether an NFT meets the aesthetic standards of the public is not the key factor. What is more critical is the social value, emotional value, and asset value attached to the back of the NFT. Similar to the Chinese inscription culture, it is not important whether the characters themselves are neatly written and handsome, the key is the identity and social influence of the inscription person. Your opinion is not important, everyone’s opinion is important. For FT consensus is value, and for NFT empathy is value, we need to make NFT have more empathy factors to support.
Circle marketing, build community culture
Cryptopunk NFT is undoubtedly the head work of the market, and behind it is a strong spirit of decentralization, which is the fundamentalist spirit of the entire honey circle. They were also heavily influenced by the film (Blade Runner) and (William Gibson) the dystopian cyberpunk spiritual novel Neuromancer.
Before creating NFTs, each issuer or individual needs to clarify which social group is represented behind his work, and what kind of social phenomenon and cultural characteristics the work reflects. Behind this similar cultural form is the externalized expression of the aesthetics and emotions of a group of circles. In the same circle, members can gain a sense of belonging and identity, and it is easy to achieve aesthetic empathy and common feelings.
Once a work with such characteristics is released, it will attract the attention of such circle groups. There is an implicit emotional connection between them and the work. In front of the massive NFTs every day, they can capture the people who empathize with the work. attention. They will promote the works more actively, and have better social interaction. Compared with NFTs without emotional links, the purchase desire formed is not known how many times greater. The project can form market pricing more quickly, the continuous influx of members of the circle, the liquidity of the product, and the floor price of the transaction will continue to increase and rise.
The uninhibited culture behind the boring ape, the strong Japanese manga culture behind Azuki, and the team’s own strong operational capabilities have brought huge topic traffic and attention to the project for a while. Therefore, the cultural attributes behind NFT artworks are the driving force behind its project development and long-term construction.
Celebrity platform, direct empowerment
Different from the strong asset attributes of FT, NFT’s own asset attributes are largely based on its own social attributes. Celebrities, celebrities, and stars have broad social popularity, and projects promoted or directly involved in them can quickly gain media exposure, bring topic traffic, and even have a certain social influence. The NFT project inBetweeners, which is strongly supported by Justin Bieber, has attracted many celebrities to join in a short period of time. Jay Chou’s PhantaBear was sold out in about 30 minutes after its release, in addition to setting a record for the fastest transaction volume of 10 million US dollars.
PhantaBear Official Website
The participation of celebrities can quickly bring attention and traffic to the project, and the traffic will be converted into incremental funds. Celebrities have their own halo effect, and being able to participate in one thing at the same time as a celebrity and use the same thing as a celebrity can bring a strong sense of pride to oneself.
The benefits of cooperation between projects and celebrities are obvious, but the risks cannot be ignored. The participation of celebrities in a short period of time can make the project gain traffic and increase the project valuation. But it may not necessarily gain real value. If there is no timely and effective strategic operation in the early stage, when the celebrity effect recedes and the traffic is greatly reduced, the price of the project may collapse quickly. The original advantages of exposure and attention have instead become the promoters of the negative word of mouth of the product, and the negative word of mouth of the product has spread rapidly. Therefore, it is necessary to obtain the long-term cooperation and support of celebrities, and be careful to make a one-shot deal. Relying on the celebrity effect, adjust and promote the operation strategy, expand the influence of the project, and obtain long-term value for the project.
Build the field and expand the usage scenarios
Valuable commodities do not necessarily have use value. Commodities with use value must have value, which derives the use value of NFT and provides a basic value anchor for NFT. NFTs are originally digital assets, so the most direct value anchoring of NFTs must also be data assets on the Internet. Before the emergence of NFT, there was no way for many data on the Internet to become digital assets. Now, relying on the uniqueness and irreplaceability of NFT technology, digital content has the opportunity to become an asset, and games are one of the most harmonious digital content with NFT. Game coins, pets, and equipment can all be digitized and packaged with NFT technology. Players, game producers, and NFT issuers collaborate and communicate with each other to jointly build an NFT game ecosystem. The chain game axieinfinity is the most powerful example.
Axie axieinfinity Chain Game Market
Going a step further, in a community with strong cohesion and high sense of identity, NFT application scenarios can be extended from online to offline, and field construction can also be carried out in real life. Hold various forms of gatherings, strengthen the interaction of community members, give full play to the creativity of community members, and create physical objects around NFT, cards, shirts, figures… to form an NFT peripheral economy, and carry out three-dimensional extension around the project NFT. The income generated can be voted by DAO community holders to distribute the income.
The head NFT Azuki, in addition to online sales in the form of NFT, also plans to open up offline streetwear brand stores in the future, and hold live events such as meetups and music festivals. The Boring Ape has used the offline community to play the mechanism, established its own super yacht club BAYC, and created a three-dimensional multi-dimensional composite development strategy of “membership club + NFT + Chaowan + DeFi”.
IP creation, continuous mining
There are very few targets that can become IP. Looking at the entire NFT market, the creation of an artist is a very small piece in the entire NFT market. Because the scale of an artist is limited, it can become a leading NFT product, such as Beeple’s. “Everydays: The First 5000 Days”, but there is still a long way to go before the super NFT IP.
The main creator of Azuki once said: “For Azuki, our dream is to create a huge IP that can produce animation series, even games and various commodities.” The author can also firmly believe that this will definitely become the direction of the value exploration of the head NFT project.
So how to create IP? For NFT projects that have been recognized by the market and have industry influence, they can cooperate with large institutions to promote, with the help of their mature market operation strategies, continue to excavate and build around the project, do horizontal and vertical development, and walk out of a single NFT track, Commercially develop the issuer’s NFT, co-brand with the brand, jointly release products, and carry out cross-border cooperation: cross-border clothing, cross-border trendy brands, cross-border games, and cross-border food. Build your own project into a super IP and realize multiple jumps in value. In the future, the total value of NFT-based derivatives will exceed the value of the NFT itself. Based on NFT derivative products, it should become a very large market share in the future.
The arrival of NFT will empower the encrypted economy to a wider range of industries. It is foreseeable that in addition to art, games and other fields, NFT is expected to be widely used in data terminals, physical assets, etc., and the potential room for scale improvement is worth looking forward to. At that time, the capture methods and realization paths of its value will be more diverse and rich.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-nfts-are-better-for-value-capture/
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