NFTs “invade” college campuses

Recently, two diametrically opposed messages have struck one after another.

On May 4, the Wall Street Journal reported that the NFT market was collapsing.

According to NonFungible data, the average daily sales of NFTs dropped to about 19,000 that week, a 92% drop from the peak of about 225,000 in September last year.

On the other hand, whether it is the popularity of relevant news reports or the discussion of the topic in the surrounding circles, it honestly reflects this trend. It is true that there are fewer and fewer reports, and the frequency of mentioning this in everyone’s chat has also dropped significantly.

However, in an accidental conversation with young people, I learned that there seems to be a rush to buy NFTs among young college students.

“Unable to understand young people” has always been the most feared thing for middle-aged investors.

Similarly, people who sit at home for long periods of time reading reports are very afraid of being overwhelmed by a large amount of seemingly objective data, and thus ignore everything that is happening in the real world.

First of all, we are in no way wrong about the data itself and the intuitive perception (i.e. the drastic cooling).

But the more likely truth may be that NFTs are at the end of a curve and the beginning of another new wave.

The data reflects the objective present.

The second- and third-tier cities and young people’s attention to NFT may reflect the future of NFT .

From a distance it is a trough

As usual, let’s start with a short quick science.

NFTs. The full name is Non-Fungible Tokens, which translates to “non-fungible token”.

This “Non-Fungible” is mainly used to distinguish it from “Bitcoin”.

You have a bitcoin, I have a bitcoin, and we can exchange it directly.

But I have an NFT, and you have an NFT, so we can’t exchange it directly, we have to exchange it for fiat currency or other equivalents first, because “artwork has the characteristics of non-homogeneity”.

Corresponding to real life, I have a dollar, you have a dollar, we can exchange (bitcoin) directly.

But I have a gold Ultraman Saiga card, and you have a flash card Ultraman Tiga, then we have to settle the account carefully. In the end, you may exchange three cards for me, but I have to ask You drink a bottle of soda (NFT).

“Tokens” here mainly refers to “encrypted” tokens.

This thing is highly related to the blockchain.

To put it simply, blockchain is a storage technology, a special kind of database .

All “products” that apply this technology, whether Bitcoin or NFT, basically have the high trust characteristics of “unforgeability, collective maintenance, decentralization, traceability, openness and transparency”.

Then this kind of “100% liberal” technical means can easily be first applied to the financial field.

The regulatory difficulties brought about by “decentralization” have directly led to a series of speculations, stories of wealth creation, and the derivation of systemic financial risks.

The advanced nature is true, and the risks everywhere are also true.

Since the beginning of this year, under the huge inflationary pressure, the Federal Reserve has frequently made hawks, raising interest rates and shrinking its balance sheet. The rise in interest rates and changes in expectations have completely overwhelmed the high-risk targets of the entire financial market.

As one of the highly speculative investment categories, NFT is just one of the ones that was indiscriminately “crushed” by the rate hike stick.

On the day we wrote the article, the Crypto market was undergoing a battle royale, represented by the 98% plunge in the LUNA coin, which is known as “Motai in the currency circle”. Within 24 hours, more than 370,000 overseas users had liquidated their positions, worth 938 million. US dollars, about 6.36 billion yuan directly evaporated.

NFTs "invade" college campuses

On the other hand, my country has also continued to follow its consistent attitude towards NFTs.

In May last year, the China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly issued the “Notice on Preventing Bitcoin Risks” and “Announcement on Preventing the Risk of Hype Risk in Virtual Currency Transactions”, stating that virtual currency speculation is strictly prohibited.

On April 13 this year, China Internet Finance Association, China Banking Association, and China Securities Association once again issued the “Proposal on Preventing Financial Risks Related to NFTs”, which clearly stated that centralized transactions, continuous listing transactions, standardized contract transactions, etc. will not be provided for NFT transactions. Services, disguised illegal establishment of trading venues, etc.

Under the double superposition of market factors and policy factors, we have sufficient reasons to believe that NFT has now come to a relatively low period.

Data from Google Trends also clearly shows that since January this year, the number of searches for NFT terms has decreased significantly.

NFTs "invade" college campuses

But is this the whole truth?

Newborn up close

“It’s not a lot of money, it’s fun.”

Xiao Ning is a sophomore student. When asked why he participated in the NFT auction and investment, Xiao Ning’s tone was very relaxed.

It is understood that the way these student groups participate in NFT, most of them choose to focus on “small and high frequency”, and each investment amount is mostly 9.9 yuan or 19.9 yuan per order, and the maximum will not exceed 100 yuan.

At the same time, the preference for transaction frequency is relatively high.

“The first contact was with Alipay. But the restrictions on transactions there are too strict. It seems that it can be circulated in 180 days, and it only supports transfer.”

“180 days. By then I’d have forgotten about it.”

In conclusion, for this group of young generation Z young people, NFT has three main attractions.

First, fresh and fashionable .

“It’s really a kind of talk. Listening to them getting together to talk about this, it feels pretty awesome. Isn’t this just running into the investment circle?”

Zhang Wei said that for most students, “investment” is still a relatively high and distant concept.

On the one hand, the threshold of NFT is extremely low, and on the other hand, it is quite cutting-edge, so it greatly satisfies the vanity of some groups.

Second, return the temptation .

“Honestly, it’s very similar to the wave of fried shoes two years ago.”

Li Weijie claims to be a fashion lover who has fully participated in and experienced the rise and fall of fried shoes from the end of 2019 to 2021.

In his opinion, NFT is nothing special and belongs to “high-risk investment projects”.

“Fry shoes, bet on stones, and NFTs, the essence is the same. If you catch it, you can make a fortune, which is still very exciting.”

Third, the expression of personality .

Different from pure “gambling”, NFTs are currently mostly in the form of “paintings”, “avatars”, “digital collections” and other art forms.

Although the popularity of each work depends more on its luck, investors often feel that their “vision” also plays a decisive role.

Compared with other “gambling projects”, NFT has a higher sense of participation, heavier personal imprint, and a stronger sense of achievement after the final profit.

Personalization, excitement, freshness, low threshold, these characteristics can be said to be tailor-made for Gen Z.

As the natives of the digital age, everything related to NFT and the Metaverse is easy for them to accept.

In the long run, it is a detour

We have always warmly welcomed new things, especially business changes brought about by technological development.

But at the same time, we also insist that all so-called new business models should be able to find corresponding prototypes in the old world.

Since the birth of blockchain technology, people have been exploring, how can this technology help to facilitate our real life?

Inspired by the technical characteristics of “unforgeable, highly reliable, and traceable”, the application of content copyright registration and protection has been proposed for a long time.

Under the guidance of this kind of thinking, NFT came into being as a product of further application and refinement of blockchain technology .

In terms of business goals and business ideals, we fully agree with the advanced nature of NFT. But in terms of specific business paths, we are concerned about the current status quo.

At present, the main forms in the NFT track include avatars, collectibles, artworks, games, Metaverse, land assets, public utilities, social networking, etc.

Among them, avatars and collectibles are currently the dominant forms. As of the beginning of 2022, the total value of avatar NFTs accounted for 49.4% of the industry, followed by collectibles, accounting for 23.05%.

However, from the point of view of practical application, digital content, especially image content based on pixels such as avatars and paintings, is extremely easy to reproduce in actual daily life, and there is no significant difference between the original and pirated copies.

In the old world (web2.0) that we are familiar with, for ordinary users, in the two major tracks of so-called avatars and paintings, whether or not they have the original copyright has almost no impact on their use.

In other words, the use value of this “image copyright” itself cannot be reflected in real network applications.

Corresponding to that new world, its real social meaning or use value is likely to be purely a source of nothingness.

There is a common sense that everyone knows: the premise of any product/service or business model is to have a group of real consumers pay for it .

There is a certain scale, real and effective user group, and this group can directly benefit from the product/service and willingly pay for the service itself. This is a healthy and long-term sustainable industrial model.

However, if in a business model, we cannot find the consumer group who will ultimately pay the bill, almost every participant expects a latecomer to take over for their own investment behavior and firmly bet that they will not be the last wave to take over. , then this is a typical Ponzi scheme or pyramid scheme, and its essence is a game of drumming and passing flowers.

We believe that NFT is an industrial model with huge potential, which is used as a financial investment project to gather money.

“Unforgeable, unique” is its technical advantage suitable for financial gameplay. Excessive magnification of this is for “chasing the end”.

A clear path and extremely fine-grained “traceability” are the technical advantages of NFTs that are highly suitable for content copyrights. However, at present, there are almost no technical teams that have made a clear effort in this field.

In this matter, the way of playing the righteous and respectful should be like this.

First of all, find a “copyright protection” track that is truly suitable for commercialization, and at least find a few tracks that can accept copyright payments in the minds of market consumers. Such as music, novels, stand-alone games, etc.

According to TME’s “2021 Chinese Digital Music Annual White Paper”, the global NFT transaction amount in 2021 is about 25 billion US dollars (the sum of the primary market and the secondary market), but the market share of music NFT transactions is only a pitiful 0.42%.

NFTs "invade" college campuses

Secondly, study the token encryption technology to truly bind the secret key, usage, and account number, and greatly reduce the cost of copyright supervision, so that resources only need to be focused on the coverage and access of the public chain or alliance chain.

In addition, making full use of the technical characteristics of NFT’s “traceability”, greatly improving the statistical efficiency of content in dissemination, and then forcing the improvement of the existing pattern of top-level benefit distribution, truly triggering a bottom-level revolution in related industries.

Taking music as an example, at present, the transmission of interests between content creators, record companies, and broadcasting platforms is obviously too extensive, and everyone adopts a buyout strategy to make a rough valuation.

As a result, there are cases where high-quality creators do not get the corresponding compensation, and there are also so-called “B-side authors” who overcharge their premiums.

However, if the blockchain technology is really popularized in this field, then every playback of each song and the corresponding playback duration can be fully counted and corresponding to the fee adjustment, which will ultimately make the distribution of benefits in the industry more reasonable, thereby Further promote the healthy development of the industry.

It is not difficult to see that what we advocate is the exploration of copyright on the consumer side, but the current mainstream idea of ​​NFT is to directly occupy the copyright, and try to infinitely magnify the uniqueness of the token to focus on its collection value, but deliberately. It ignores the market’s perception of pay and the fact that everything in the digital world can be easily replicated one-to-one.

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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