NFT to the entertainment industry: rich password or time bomb

Recently, several films have launched NFT collections one after another, all of which have received positive responses from the market.

 On September 16, director Chen Musheng’s posthumous work “Burning Man” was cast into the film NFT. The auction price for a week on the shelves increased from 0.01 ether to 9.15 ether, which is equivalent to more than 210,000 Hong Kong dollars; October On the 9th, Wong Kar-wai’s film NFT “In the Mood for Love” landed at Sotheby’s autumn auction at Sotheby’s Auction House. It was sold at 4.285 million Hong Kong dollars, which was higher than the expected 3 million Hong Kong dollars.

NFT to the entertainment industry: rich password or time bomb

Under the response of the market, the combination of movies and NFTs has become more and more frequent. The movie “Moss Blossoms” will be released before its release on October 22, which is fully authorized by its NFT; the upcoming “007: No Time to Die” also announced the upcoming launch of the first batch of NFT collections of the 007 series.

As predicted by the industry, NFT will enter an explosive growth in the second half of 2021. It has quickly become a hot topic with the entry of various KOLs and major manufacturers, and its penetration in the entertainment industry is also expected.

The entertainment industry provides excellent application scenarios for the NFT field, and on the contrary, NFT also provides innovative technology and imagination for the entertainment industry. However, NFT is still a new thing in China, risks and bubbles coexist, and the uncertainty of the entertainment industry is also difficult to ignore. The combination of the two is not all smooth.

NFT to the entertainment industry: rich password or time bomb

The Myth of Rich Wealth NFT

NFT, or Non-Fungible Token, literally means “non-homogeneous token”, also known as encryption art. Its characteristics are indivisible, irreplaceable and unique. It means that when a work is cast into NFT, the work becomes a unique digital asset on the blockchain.

NFT to the entertainment industry: rich password or time bomb

Simply put, it is to assign a unique identification number to the artwork to prove its authenticity, trace its ownership, and, like other rare artworks, it can be exchanged, traded or held. NFT combines scarcity and collection attributes, and it is also a kind of identity.

And artistry, entertainment + collection value, identification = faster money.

Beginning at the beginning of the year, we can constantly see that all parties are building momentum for NFT, and kols in various fields have broken the dimensional wall and collectively staged performance art on real money on the Internet.

On March 11, digital artist Beeple’s NFT work “Everydays: The First 5000 Days” was sold at Christie’s for a high price of US$69 million.

NFT to the entertainment industry: rich password or time bomb

According to Christie’s, the auction price is the first NFT artwork sold by a world-renowned auction platform, setting the highest price in an online auction and becoming the third highest auctioned work by a living artist so far.

Musk quickly joined the game. Five days later, Musk put a piece of NFT electronic music work about NFT on Twitter for sale. Beeple, who had just received $69 million, immediately asked for a message of $69 million, while Musk offered a price of 4.2 billion Dogecoin. Netizens also started to offer prices. For a while, the message area was so lively.

In 2016, street graffiti artist Banksy created a work “Idiots”, mocking collectors who spent huge sums of money on art, and said “I can’t believe you idiots would really buy this”.

But the curse of artists is all art. After fierce bidding, this “Idiot” was finally taken away by a blockchain company at a price of 95,000 U.S. dollars. They bought the paintings and started a live broadcast. They burned the paintings in public, leaving the electronic works as an orphan. They turned around and sold them for four times the price-380,000 U.S. dollars.

NFT to the entertainment industry: rich password or time bomb

At the same time, a large-scale online NFT carnival on a global scale has begun. All kinds of NFT collections are dazzling, and everything can be NFT, only you can’t think of it.

Player cards, avatars, wine, games, digital music, virtual assets, pet cats, etc., everything. Twitter CEO Jack Dorsey even sold his first tweet in 2006 for more than $2.9 million. Curry, Murakami Takashi, Eminem, Yao Ming, Shawn Yue, Xu Jinglei… all trendy celebrities in various fields have entered the game, fancy clocking in NFT.

There was also a glimpse of Justin Sun, the “hype genius”. At the beginning of September, Justin Sun spent $10.5 million to buy an NFT profile picture, which also added to the popular NFT boom.

NFT to the entertainment industry: rich password or time bomb

In March of this year, Sotheby’s Asia CEO Cheng Shoukang mentioned in an interview that NFT will bring hot new topics and new atmosphere to the global art market in the second half of 2021.

In fact, it is true. The NFT market ushered in explosive growth this year. According to Nonfungible data, the NFT market transaction volume in 2021Q2 reached US$754 million, an increase of 3453%/48% year-on-year/month-on-month.

The current NFT projects with the highest sales are the blockchain game Axie Infinity , the NBA player card collection NBA Top Shot, and the avatar collection Cryptopunk, with sales of 10.4/6.7/650 million US dollars respectively.

Under the “Qiantu”, the entertainment industry has also begun to move around.

The Wealth Code of the Entertainment Industry

First, digital derivatives around movies. In June of this year, iBox and the producer of the movie “Dynasty Warriors” jointly released the first domestic movie NFT series, including different forms of character images and props and posters.

Digital music products have also declined. Domestic musicians Gao Jiafeng, A Duo and Hu Yanbin have successively released NFT digital works. Thirteen invited vinyl digital art collections NFT, and the Shenzhen Symphony Orchestra’s “Mahler Second Symphony: Resurrection” NFT digital recordings were also released.

NFT to the entertainment industry: rich password or time bomb

Internet giants have also begun to deploy NFTs, each showing their own abilities.

Based on AntChain, Alibaba has successively issued a number of NFT Alipay payment code skins, such as Dunhuang and Assassin 567 collaboration models, “White Snake 2” co-branded models, Feng Zikai comic series, etc., and also produced related NFT collections for this European Cup. .

PCG, a subsidiary of Tencent, has launched the magic core app, which is known as “the first domestic NFT trading platform”. TME will launch the NFT encrypted art service “TME Digital Collection” to sell virtual collections to users.

NetEase’s game “Forever Tribulation” IP authorized the release of the “NARAKAHERO” series of NFT blind boxes, which were sold out in only 15 minutes after going online…

The big companies are scrambling to enter the game because NFT is really profitable.

The first is the protection of intellectual property rights. Tonya Evans, an intellectual property owner at Penn State University Dickinson, said that NFT technology provides a method that will not be “unlimitedly copied” on the Internet, can encode the integrity of work, and provide the best technology for protecting original music.

When intellectual property rights are digitized, the identification of the source of copyright, the number of works issued and the number of circulation can be traced. Once the system matures, the complete elimination of piracy may no longer be a myth. The domestic cultural and entertainment industry can be regarded as the hardest hit by copyright. This is a happy event.

And what everyone values ​​most is the sense of the future of NFT technology, that is, the integration with the meta-universe. CITIC Securities released a report stating that NFT will be Metaverse’s digital asset confirmation solution.

To put it bluntly, the concept of meta universe is an immersive experience, to develop another life in the virtual world. Once the scene construction of the virtual world matures, it will be deeply integrated with the real world. The new digital scene will also give birth to more kinds of digital assets and build a set of economic system belonging to the meta universe.

In this system, more NFTs currently used in the field of art collection will be given monetary attributes to provide underlying support for the generation, confirmation, pricing, circulation, and traceability of digital assets.

When the future meta-universe is really realized, technically it can really achieve the same as in “Top Player”. Wearing a hood can experience the virtual world immersively. Then in the virtual scenes that games and movies can provide, various All kinds of cultural consumer goods can be converted into NFT for trading.

NFT to the entertainment industry: rich password or time bomb

By then, the underlying logic of the virtual world will be no different from reality, just two characters, krypton gold. Players with more digital assets can open the easy mode of the virtual world and have a better experience, which of course is directly linked to the real money in the real world.

In other words, as long as the story is well told, someone will pay for it. From this point of view, NFT is simply a new wealth cipher and monetization machine for the entertainment industry.

However, the future of NFT’s cooperation with the entertainment industry cannot sit back and relax.

Risk and bubbles coexist

Dao is one foot high and the devil is one foot high. Whenever something new appears, it is accompanied by new chaos and predicament.

First of all, the ubiquitous scalpers have also entered the NFT field. Rare is precious, everything can be fried.

Alipay’s NFT payment code skin is still being snapped up, and Xianyu has begun to have the same type recovered and sold. According to screenshots provided by netizens, some scalpers posted on Xianyu: “High-priced recycling Alipay Dunhuang Fine Arts Institute NFT number 0001 or 6666 Yes, one hundred thousand one, and another number 500 one.” Xianyu fetched a maximum of 1.5 million yuan for the same NFT.

NFT to the entertainment industry: rich password or time bomb

Although digital artwork can encode and digitize artwork, it can effectively prevent piracy. However, the technology has been updated, and the issue of piracy and infringement has also been iterated.

Intellectual property is sometimes ambiguous and unclear. A work may be the result of multi-party cooperation. Original authors, co-authors, secondary creators, publishers, producers, etc. may all participate in the development and creation of a work. At this time, how is the copyright distributed?

When a work is NFTized, what rights are transferred to the work and where are the scope boundaries. These issues are not clear in the current part of the NFT transaction process. Moreover, how to verify that the creator of the NFT is its owner? What if someone sells someone else’s intellectual property as NFT?

This kind of thing has already happened. An artist who released digital works under the name “Weird Undead” discovered that someone had pirated his work and sold it as an NFT; someone composed Euler’s formula into a song and put it on Ethereum for sale in the form of NFT. On the other platform, BSC, the exact same work appeared, but the author was another person.

These problems are even more deadly in the domestic entertainment industry where there are endless problems of infringement and piracy.

NFT is still in its infancy in China, and the ecology is not much perfect and healthy. At present, the domestic NFT market, dominated by major manufacturers, is quite domineering. There is neither a shared public chain nor secondary transactions, nor can ordinary users participate.

Specifically, big companies use their own blockchain technology to build their own NFT trading platforms and sell their own IP NFT products. For ordinary users, they can neither launch their own NFT nor circulate the collections in their hands. “Everyone is an artist” is just a distant dream, and hard-working content creators are workers who serve large factories.

In addition, whether the IP value is strong is also a question that needs to be considered. After all, the domestic entertainment industry is still too young. As far as the domestic entertainment ecosystem is concerned, it is difficult to create a classic series of movies, let alone produce a large number of IPs that can be serialized like Disney. After all, NFT is still content consumption, and the industry can produce a steady stream of high-quality content is the key.

NFT to the entertainment industry: rich password or time bomb

Another dilemma that cannot be avoided is regulation.

At present, domestic supervision mainly cracks down on virtual currency mining and trading. The supervision of NFT is temporarily absent, but it is only a matter of time. There are policy supervision risks in UGC content, game NFT, and virtual transactions. Related laws The regulations will come sooner or later.

South Korea has now begun to strengthen the regulation of game NFTs. In July, FIVE STARS, which claims to be the first blockchain game in South Korea to access the NFT trading system, was rejected by the South Korean Game Management Committee on the grounds that the NFT function was included in the game. Regulatory resistance.

This also provides some predictive perspectives for domestic NFT supervision. At present, domestic legal experts have also pointed out the hidden risks that NFT may involve: money laundering, illegal fund-raising, and asset transfer functions. Once the future development exceeds the scope of reasonable use, it will have a greater negative impact on the financial system and social integrity. Impact, “supervision is inevitable.”

Once the supervision is released, the building collapses overnight, and bloody examples from all walks of life are in sight.

Can the NFT take off with the entertainment industry? I’m afraid I can’t be optimistic. The domestic entertainment ecology is still in the stage of maturity, and it has not been able to break away from high-risk industries. It is extremely dangerous to join hands with the current immature concept and excessive bubble NFT.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-to-the-entertainment-industry-rich-password-or-time-bomb/
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