NFT sinks idle fish Traditional trading platform’s ‘intruder

NFT out of the loop is materialized in a “sinking” channel like Idlefish.

“Second-hand trading platform Idlefish and online retail platform Taobao have also become new interfaces for NFT.”

With the exaggerated rise and fall of the Meme cryptocurrency, the mainstream discussion of the NFT topic has diminished.

However, if the Meme cryptocurrency has brought digital currencies to the attention of more ordinary investors, the efforts made by NFT to “break the circle” continue.

NFT exists to build a very creative interface for the average internet user to enter the crypto world, and the influence of this interface is now expanding.

Blocklike has observed that the second-hand trading platform Idlefish and the online retail platform Taobao have also become new interfaces for NFT. Searching for NFT in these platforms, one can see familiar NFT, crypto art, well-known projects and other products that are already available on the shelves.

NFT enters “Idlefish” and “Taobao
The myth of wealth creation and celebrity effect in the NFT space is still spreading, and more people are trying to get involved as they learn about the huge potential of digital art. As the demand for purchases increases, NFT is penetrating in a variety of unexpected ways.

Among the many communities discussing the subject of NFT, Idlefish has been labeled “China’s largest marketplace for NFT transactions.

If you search for “NFT” on Idlefish, there are 20 to 30 sellers of the most relevant trading products, and the keywords set by the sellers include “crypto art”, “Opensea”, “Cryptopunks”, “world’s hottest”, and other tags. The same information also appeared in Taobao, the traditional internet online shopping platform became an interesting portal for a broader range of investors to access NFT products.

NFT sinks idle fish Traditional trading platform's 'intruder

Based on observations, the products offered by sellers on Idlefish fall into two main categories.

The first category is the direct sale of NFT products, where buyers and sellers directly negotiate the transaction of original NFTs or negotiate the sale of purchased used NFT products, and these traders often already have a certain knowledge of digital assets.

The second category is mainly to purchase and consulting, buyers entrusted sellers to buy NFT products in the specified platform, sellers mainly provide the entire operation or guidance, in this way, buyers only need to provide the platform in the selected NFT products related links, other operations can be completed by the proxy. In addition to “purchasing” NFT, there is also “placing and managing”, which helps buyers to upload their own creative works in the designated platform.

The second category tends to target the “entry-level” players of NFT, and is the category with more inquiries and transactions. It is worth noting that these sellers are very attentive, and for those who are new to NFT or crypto art, the sellers will often introduce the basics of “bitcoin”, “virtual wallet”, “NFT”, etc. to help buyers have a better understanding of digital currency first.

In terms of fees, in addition to the NFT purchase (or generation) fee and the related Gas fee, sellers will mostly charge fees such as “proxy auction fee” and “commission commission”. In addition, if the transaction amount or the number of transactions is relatively large, both sides of the transaction will also discuss some preferential methods, such as whether they will “cover the gas fee”.

In the “Wanted” function of Idlefish, you can also see some people who are interested in NFT, directly expressing their demand for NFT transactions.

NFT sinks idle fish Traditional trading platform's 'intruder

Although the current NFT craze was once overshadowed by the ‘zoo’, this game or art-based out-of-the-loop product continues to be embraced by more ordinary investors.

The topic of “crypto art is coming out of the circle”, which was hotly debated in the community some time ago, is fermenting until now, and is finally materialized in the “downstream” channels like Idlefish.

NFT: Channels are opening up
Some time ago, Mac Ocampo, director of Virtually Human Studio (VHS), a blockchain entertainment studio, suggested in his analysis of the problems facing NFT that the obstacle facing the NFT gaming industry is that not all gamers are digital currency traders, and not all digital currency traders are gamers.

This argument applies not only to the NFT gaming space, but to the entire NFT trading market. While many platforms are committed to lowering the barrier to entry for users, for those ‘outside the loop’, the operational processes, code knowledge, Token ID and other processes required to purchase digital assets still take a lot of time to learn and research. For some digital currency traders, they may not care about the cultural value of the existence of NFT products, and are only chasing the “wealth effect” caused by the heat.

In a paper introducing NFT by the traditional art media platform Central Academy of Fine Arts Online, 11 basic crypto market terms need to be attached for science popularization and market education in order to be better understood by readers in the traditional field, and the threshold of understanding NFT ultimately revolves around the level of professional knowledge in the crypto industry.

NFT sinks idle fish Traditional trading platform's 'intruder

(Central Academy of Fine Arts Newswire adds a lot of industry jargon to the introduction of NFT for science)

The complexity of the buying process is a deterrent to buyers. Some argue that this drawback is deeply rooted in the crypto world’s underbelly and that the whole buying experience is not friendly for individual investors who are new to the market.

According to nonfungible.com data, the number of NFT sales in recent months averaged around 110,000, with $303 million in sales in a single month, but the number of used transactions is trending downward, with an average of 35,626 units sold.

A NFT market research report for the first quarter of 2021 shows that the number of unique addresses from early February to early March, the data shows that only 17 NFT applications with more than 300 buyers, considering multiple addresses attributed to the same buyer, the number of applications with 10 or more real buyers per day is only 10 to 15 The number of apps with 10 or more real buyers per day is only around 10-15, considering multiple addresses belonging to the same buyer. This data shows the current disparity in the development of NFT addresses, and that NFT “out of the loop” is more in the concept than in the real holders involved.

NFT sinks idle fish Traditional trading platform's 'intruder

(Source: nonfungible.com)

However, some platforms are improving the user experience, with NFT platforms such as OpenSea and KnownOrigin taking reference from traditional online shopping platforms by adding “enter bid” and “buy now” functions next to the artwork.

In addition to platforms like Idlefish that “passively” open up the flow of NFT transactions, some large overseas platforms are actively engaging in NFT transactions.

On May 12, Jordan Sweetnam, senior vice president and general manager of North American markets at e-commerce giant eBay, publicly stated that it would allow the sale of digital collectibles NFTs on its platform, including digital collectibles such as NFT trading cards, images or video clips. eBay will soon offer a list of NFT products to sellers who meet eBay’s criteria. NFT product listings. However, some foreign media information said that the NFT currently for sale on eBay is based on the WAX blockchain and can only be paid in U.S. dollars.

Risk and growth
Until there is a better solution to the current state of NFT transactions, the threshold for NFT transactions seems to have lost many new investors to the celebrity effect. The cases of NFT transactions on Idlefish and Taobao tell us that the market demand for NFT transactions is perhaps more than we expected.

But on the other hand, the risk of NFT transactions on platforms like Idlefish still exists due to the security risks of trading virtual goods. NFT is still in the development stage, with opportunities and blue oceans on one hand, and key technical and security issues to be addressed on the other.

In one case of NFT disputes observed by Blocklike, a buyer was dissatisfied with the seller’s duplicate listing of sold NFTs. In another case, a buyer thought he bought a “pirated” version of Cryptopunk, and the NFT marketplace has been a topic of ongoing debate about how platforms can distinguish and control the originality of uploaded works.

If you want to buy a genuine Cryptopunk, the cheapest price is currently around 15 ETH, but if you look around the NFT trading platform, a “similar” high-fashion version may only cost a dozen dollars.

An overseas crypto artist and NFT user @Neitherconfirm has said that after entering opensea, the user can still go and change the image even if the JPG is in auction status or the JPG doesn’t belong to him originally.

NFT sinks idle fish Traditional trading platform's 'intruder

In a way, the “uniqueness” of NFTs does not yet emphasize that the content they correspond to is necessarily unique, and the usefulness of NFTs as a digital certificate and proof of authenticity for collectibles, but in reality in most cases, is also controversial. Moreover, as most digital works are still stored in off-chain servers, their ownership has been discussed by the community.

The overseas NFT community has compiled several suggestions for investors before buying NFT, mainly.

1, before buying NFT, check the origin of the artwork, consider its authenticity, vulnerability and time of existence.

  1. Verify the NFT, search for its creator, and check if its smart contract already exists on Etherscan.
  2. Know in advance the technical or financial risks that NFTs may face.
  3. If the assets of the NFT are not stored on the blockchain and/or IPFS, there is no guarantee that the purchaser truly “owns” them.
  4. If off-chain storage is used, the ownership of NFT is tied to the project team.

NFT is based on blockchain technology, but the superiority that NFT offers is not absolute. With the rapid spread of NFT’s broken circle effect, the increase in the number of users and demand for transactions may also be ahead of the NFT transaction method is still full of opportunities and challenges.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-sinks-idle-fish-traditional-trading-platforms-intruder/
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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