In-depth interview: How can the NFT trapped in OpenSea get out of “Egypt”?

Written at the beginning of the article:

On January 5th, the chain of Daren officially launched the “Daren’s Living Room” column, focusing on current industry hotspots, talking with active frontline opinion leaders, and colliding with truly valuable content and thoughts.

That night, “Master’s Living Room” ushered in the first guest-Blockchain “all-rounder” Xu Zhihong. He entered the blockchain industry in 2017 and has conducted in-depth research in the fields of platform currency and lending market. He is currently actively participating in the construction and development of the NFT community. He published “Who can lead NFT out of Opensea” on January 4 in the Orange Book ?”.

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Regarding this article, the most impressive sentence of the expert is “NFT is waiting for its Moses, rewrite a copy of “Exodus””, I recommend you to read it. It is precisely because of this article that the expert temporarily initiated this dialogue. In an interview that lasted more than two hours, Xu Zhihong focused on the theme of “Who can lead NFT out of Opensea”, shared his views on the NFT market and looked forward to the future. The core points are as follows:

1. In addition to land, ENS is the core NFT, and other domain names are also worth starting.

2. The avatar NFT gameplay is similar to MEME, but the liquidity is not good. There is already a suspicion of drumming and spreading flowers, so be careful.

3. To participate in Opensea, you must be especially aware that there is a high probability that it will return to zero, which is 100 times more risky than investing in Bitcoin or even MEME.

4. NFT is the innovation center of the entire blockchain, and almost all capable teams are trying to enter this market.

5. NFT is essentially the inclusion of more diverse people into the Crypto world, which is the huge value of NFT.

6. Whoever can use Crypto’s weapons well may be able to get shares from Opensea; the platform provides new trading scenarios is the big show of this year.

7. In the Web3.0 era, NFT can play a greater role. Your previous NFT investment will unlock a new world for you in the future.

8. NFT projects should issue tokens, which is already an industry practice. Artblocks is a golden sign. If a token is issued, it will be like ENS that the entire network will be listed at the same time.

9. Today, the valuation of NFT is stuck in the valuation of Opensea. If it succeeds, the opportunity of x10 will come.

10. Opensea, which has only 800,000 users today, is just the most primitive Bitcointalk. Only by sending NFT to 50 million people will it be NFT Summer.

The full text of the dialogue is as follows (some contents have been deleted):

Part 1: 4 favorite NFT projects

Expert: Our topic today is NFT. Let me ask a gossip question. What kind of NFTs does Xu Da currently hold? Which project is the most promising?

Xu Zhihong: Personally, I have always been optimistic about Decentraland. Even though Sandbox is very good at operating today, it still cannot change the position of the first benchmark of Crypto Land in my heart. It belongs to Decentraland.

The first category is basically land. Unlike many people, I am not very involved in avatar projects. There are 4 land-type projects that I currently like, referred to as “DSCW”:

——Decentraland is the standard setter of blockchain land, and the earliest time, many people like to call it MANA;

——Sandbox’s background is a game. It’s going to happen right now, and it’s the most optimistic by the market, and the popularity is also the highest, but the land is continuously increasing;

——CryptoVoxel is more accepted by artists and blockchain subcultures. I really don’t like its art, but I know someone likes it, so I buy it too;

——W is a relatively new project: Worldwide Webb. This one has game attributes and is more open.

In addition to land, I personally think that ENS is the core NFT. Don’t think it is a domain name, including ENS, DAS and other chain domain names. I think it is also a worthy NFT.

Finally, let’s talk about the avatar. I think the current market is too brainless and the price is too high. The gameplay is similar to meme, but the fluidity is not good, so I don’t recommend you to make avatars. At present, because avatars have a money-making effect, those who come in to make avatars are selling works for the sake of continuous operation, so I cut the entire field. Lost.

Here is a special talk about the pixls avatar I am using now. This is not an avatar, it’s a complete avatar, used in Metaverse scenes. For example, the two projects I mentioned above, Sandbox and Worldwide Webb, will use avatars like pixls, so I prefer the avatar with scenes. Instead of only installing X JPG avatars on Web2.0 (such as WeChat, twitter).

Part 2: Opensea to BitcoinTalk

Expert: In “Who can lead NFT out of Opensea?” In the article, Xu Da compared Opensea today to BitcoinTalk 12 years ago. This is just the starting point of NFT, not the end. For many old people in the currency circle, this metaphor is not unfamiliar, but for many new friends, BitcoinTalk is a bit unfamiliar. Can you briefly introduce BitcoinTalk in your eyes?Why do you make this analogy? Where is the end of NFT?

Xu Zhihong: It is a forum where Bitcoin’s earliest players gathered. Similar products appeared in China is the Babbitt forum, which was born in 2012. In short, all their imaginations about Bitcoin at the time were very different from what everyone imagined, and most of their practices failed.

Therefore, when participating in Opensea, you must understand that there is a high probability that it will return to zero.This is 100 times more risky than investing in Bitcoin on an exchange or even buying a meme coin, because Bitcoin has a perfect scenario-continuous bidding and trading on the exchange, but NFT has not yet existed, so the risk has become huge.

If you know that you are consuming NFT, then it is not a big problem. If you think you are investing, then most of you will lose money.

Most participants in BitcoinTalk failed to hold Bitcoin. The first brother who exchanged pizza for 10,000 bitcoins was sold at 40 cents in bitcoin.

I think some typical assets on Opensea can be bought, such as the land mentioned at the beginning. The avatar has been suspected of playing drums and spreading flowers, especially the expensive avatar, you must be careful.

I don’t understand the logic of CityDAO. It has an upper limit and the price of land is transparent. Therefore, I think Citydao is an interesting social practice and does not belong to the land I mentioned above.

Part 3: Why is the NFT market so hot?

Da Ren: In recent days, despite the sluggish market, the NFT market has been extremely lively, especially driven by the boring ape, various monkey projects have become popular, and Opensea has become a mountain of flowers and fruits. In your opinion, why has the NFT market become hot again in the near future? Behind the excitement, what are the risks that need to be vigilant?

Xu Zhihong: NFT is the innovation center of the entire blockchain. Three years ago, this innovation center was on the exchange. Now in NFT, almost all capable teams are trying to enter this market.

Everyone knows that Opensea will take the capital market and may no longer issue tokens. This is like the Huobi listing in Hong Kong, which will be far behind by Binance. The question now is that Opensea is a giant, but it has fatal flaws. Everyone wants to be Binance.

Back to the popularity of NFTs, traditional blockchain assets have three things: a chain, a platform for making money, and a smart contract. Examples of a chain are Bitcoin and Litecoin; examples of a money-making platform are BNB and FTT; examples of a smart contract are AAVE, ENS, and UNI.

These three things have nothing to do with the vast majority of people and institutions in society, so most people cannot participate in it except for speculative transactions. NFT is essentially the inclusion of more diverse people into the Crypto world, which is the great value of NFT.

STO talked about STO a few years ago, but this road didn’t work, but CityDAO made it through NFT.

Jay Chou and Sotheby’s auction houses have all come in. The hot spots of NFT will continue to ferment, and various wealth opportunities will come, so we still have to actively participate in this interesting social practice.

Part 4: Who is Binance in the NFT world?

Expert: There are actually many NFT platforms that have not yet issued tokens. What kind of platforms are hopeful to become Binance in the NFT world? Xu Zhihong: There are too many. I personally have path dependence. I think it will be an off-chain continuous bidding transaction matching platform like Mt.Gox.

However, the current product managers of major exchanges can be sure that they have never played NFT, and their current products have not created a scene, so the off-chain platform still can’t see it.

There are many platforms on the chain, Element recently released the BSC version, and LooksRare, which will be launched soon. I think these platforms have a lot of room for improvement. Whoever can use Crypto’s weapons well may be able to get a share from Opensea. I have seen LooksRare in the past few days and seem to have made some innovations in quotation. I think it is still very meaningful.

I am actually just a consumer myself, and always regard Opensea as Amazon. Today I personally think that the biggest opportunity is to bring scenes, such as buying an NFT music when listening to music, buying an NFT skin when playing games, and not “naked chat” when chatting, buying an NFT avatar…

It is indeed a bit difficult for All in one’s trading platform to take NFT out of Opensea.

Part 5: Is fragmented NFT reliable?

Expert: Behind the hot NFT market, liquidity is the biggest hidden danger. Once the consensus collapses, the sky-high price of NFT may return to zero overnight. At present, the solution to NFT liquidity in the industry is mainly through fragmentation, but combined with the performance of several fragmented NFT projects, it is often not satisfactory. In your opinion, is the fragmented NFT value worth participating in? Is fragmentation the main way to solve NFT liquidity in the future?

Xu Zhihong: Fragmentation is a general concept. I can’t accept the fragmentation of a punk. I prefer to see products like AMM appear.

NFTX is currently doing NFT liquidity pool, which is very interesting. I think this direction is correct.

If an off-chain platform reduces the cost of the NFTX experience, I think it has a lot to do. The problem is solved by people, and the early liquidity of Bitcoin is also very bad. This is the core issue of my article yesterday. This method of AMM can be made so large, and NFT can definitely find a way. If this problem is resolved, NFT will welcome

It’s the first time to skyrocket. Talking about fragmentation today, I think it is too absolute. Any method to improve liquidity is right. Continuous bidding is done by Mt.Gox, and AMM is done by Uniswap. We do not limit the way.

In short, I think the platform provides a new trading scene is the big show of this year. In contrast, token incentives are actually not very competitive.

Part 6: Is there any play for NFT leasing?

Expert: After reading Xu Da’s article this morning, I happened to see an article by Bi Tweet: “The Next “Blue Ocean” Track: NFT Leasing & Landlord on the Chain”. The article imagines the future form of NFT consumption-renting agents, especially some sky-high NFTs. Through leasing, it not only solves the problem of insufficient liquidity, but also continues to generate value, and also meets the needs of ordinary investors to hold sky-high NFTs.

Is Xu Da optimistic about NFT leasing? Boldly imagine whether there will be an Opensea-class NFT rental market in the future? Or, is it possible for Opensea to launch NFT leasing business?

Xu Zhihong: I think the leasing market will definitely appear, but I am optimistic about the lending platform where NFT is used as collateral. I remember that AAVE has plans in this regard.

Real estate in the world is illiquid, but it is the largest collateral, so liquidity is not a prerequisite, and the financing needs are clear. This year, the lending market will definitely rise (may be called NFTfi). Defi2.0 has been rolled into this, and it will definitely overflow into the NFT field.

Pledge, lock-up, and fram, one-click three-link, this year projects with 100 ETH must be done like this. Don’t doubt, many NFTs will exceed BAYC in market value this year.

Part 7: Do you want FOMO?

Da Ren: Yesterday, a friend who was never optimistic about NFT approached me for advice-although I don’t believe in this stuff, if I don’t participate, I will get out of the air. This actually represents the mentality of many market participants at the moment. How does Xu Da think about the current FOMO sentiment? Under the NFT boom, many friends are making whitelists and staying up late. What advice do you have for these friends?

Xu Zhihong: The risks of NFT are obvious. People who are slightly rational will not participate when they see liquidity, but this is exactly what a new species should look like. It gathers all innovations and is exciting.

The Pixls I used started claiming the trolley yesterday, and everyone was very excited. Users are witnessing the growth of a blockchain project, just like people on Bitcointalk, full of unknowns, but still curious. Therefore, this kind of pleasure cannot be felt by people who are not involved.

I think in the Web3.0 era, NFT can play a greater role. Yesterday the Orange Book published my article. This article was posted on Mirror.xyz. I feel very ceremonial. In the future, it can be imagined that an article can be traded. Those genius ideas or texts should become collectibles. I think this is the most attractive part of NFT.

Another thing, Uniswap’s user experience, it is difficult for ordinary Xiaobai to participate, but buying a monkey on Opensea has driven more people to use the private key. I think helping you to complete onchain literacy is a historical feat of NFT, so it is worth paying some costs. If you lose money, you will pay the tuition.

Let me give another example, illiquidjpegs collects zero NFT online, and can use the zero NFT to buy platform coins. The more you lose, the more you get…

In the trading scene, it has been a long time since I saw interesting products and innovations. It is said that LooksRare also engages in a very thoughtful way of interaction. In short, your previous NFT investment will unlock a new world for you in the future.

Part 8: Will NFT repeat the MEME script?

Expert: If you refer to last year’s MEME market, Dogecoin triggered strong FOMO sentiment, prompting investors to turn their attention to other animal coins, and finally created a magnificent animal currency market. Pushing back the NFT market, CrypoPunk and Boring Ape have become big players’ games. Most of the participants were hesitant, so they turned their attention to some low-cost concept derivative projects. According to your speculation, will the NFT market repeat the script of the MEME market? why?

Xu Zhihong: I don’t think it will. Opensea is still in the Bitcointalk stage, and projects like Boring Ape will continue to pop up. I will give you Amway a product that discovers data on the chain and Twitter data. You can try to register the whitelist: https://twitterscan.com/

https://twitter.com/MetascanPro

Users of these products will implant NFT gameplay. It can be said that the smartest brains in the entire market are in the NFT field, not only adidas, don’t simply repeat the project.

Bitcoin, Ethereum, and Dogecoin are essentially different directions of exploration. If you pursue the MEME kind of gameplay, it becomes a lottery and a fast-running game. 

Part 9: Should NFT projects send tokens?

Daren: An interesting phenomenon has also been observed recently. Some mature non-coin NFT projects in the community will soon issue tokens through GameFi and other forms in 2022, including boring apes, chunky penguins, etc. Some emerging NFT projects also promise to hold NFT can obtain tokens issued in the future. Is the issuance of NFT projects a trend or a gimmick? Is the token of the NFT project worth paying attention to?

Xu Zhihong: That’s for sure. NFT projects should issue tokens. This is already an industry practice, not innovation. The NFTs I introduced at the beginning of today all have tokens.

Few people have bought the land in Decentraland, but MANA has allowed a lot of people to make money; Sandbox’s token was first in Binance IEO, and the increase was also very good; this year, CryptoVoxel will also issue tokens in April.These are normal, and the same is true for ENS. It is inaction not to issue tokens. Therefore, most of the head NFT projects will have tokens.

Artblocks, the most popular art NFT sales platform, is likely to issue tokens this year. Many people want to participate. You can bet Artblocks will issue tokens this year. After all, this is the category with the largest transaction volume on Opensea.

Artblocks is a golden sign. If a token is issued, it will be like ENS, and the whole network will be listed at the same time.

Part 10: Who can lead NFT out of Opensea?

Expert: In the end, I will return to the topic of this conversation-who can lead NFT out of Opensea? Regarding this issue, Xu Da mentioned in the article, and at the same time, said that the NFT is waiting for its Moses to rewrite a copy of “Exodus”…So, where is Moses?

Xu Zhihong: I think it is possible for more new scenarios of Web3.0 products, or off-chain NFT trading platforms. Opensea, which has only 800,000 users today, is just the most primitive Bitcointalk. I think it will be NFT Summer if NFT is sent to 50 million people!

Today, the valuation of NFT is stuck in the valuation of Opensea. If it succeeds, the opportunity of x10 will come.

Reminder: The above views only represent the positions of the guests, and the projects mentioned in the dialogue do not constitute investment advice

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