NFTs: the new prey of digital speculators

It is undeniable that NFT has brought new elements to the digital world, allowing digital art and digital content to be efficiently confirmed, and even transferred and traded across platforms, but “not all artworks need to be marked with NFT.”

Guided reading

Focusing on the current NFT digital collections, Zhou Hongyi found that many are not owned by one person alone, and can even be copied multiple times, which makes him doubt the business logic of NFT digital collections.

“It’s hyped now.” Zhang Ruxin, a practitioner in the digital art field based in Singapore, believes that there is no problem in the form of digital art transactions based on NFT, but “there are some bubbles” at the moment.

 A reality that cannot be ignored is that in the current market, most people buy NFT artworks not for art collection or fun appreciation. On the contrary, most of them regard collections as an investment in digital assets.

“Look, Dopunk.” Yang Ming opened WeChat and enlarged his avatar, which was an image he obtained in the NFT project ICPunks.

When ICPunks was launched in September last year, Yang Ming, who worked in an open source community, directly got the “whitelist” rights and had an airdrop opportunity for this NFT avatar, “without spending a penny”.

However, such “free” opportunities are not many. In addition to pursuing the popularity of NFTs, Yang Ming will also “follow the trend and buy and buy”. After some calculations, he has spent tens of thousands of dollars in NFT transactions.According to him, most of the time, as long as he thinks good-looking or good-looking NFTs, he will “chop hands”.

On January 1, 2022, the fashion brand founded by star Jay Chou jointly launched a Phanta Bear NFT project with the decentralized entertainment platform Ezek. The attention of groupies and NFT collectors.

It is reported that each of the Phantom Bears in the above-mentioned projects will have “star eyes”, and will have other characteristics, and will unlock different, unique access levels and privileges for their owners.

Even if he is not an NFT collector, Yang Ming, who is a “Zhou Dong fan”, wanted to easily “chop his hands” when each Phanta Bear was priced at 0.26ETH (equivalent to RMB 3988), but never thought that the price would soar to 7.87ETH (equivalent to RMB 120,733), and then quickly fell back, “similar to the feeling of frying shoes.”

Although he was excited, the “roller coaster” price changes of this project made Yang Ming discouraged.

Rich man game?

As a non-fungible token, NFT is a term in the currency circle. How does it collide with art?

It starts with an auction. Christie’s, a British auction house founded in 1766, auctioned a pure digital artwork “Every Day: The First 500 Days” created by writer Beeple online on the evening of March 11 last year, and finally sold for $69.346 million (equivalent to RMB 4.50). 100 million) transactions.

This move not only broke the world auction record, but also brought the NFT digital collection into the public eye.

A relevant person from Christie’s told reporters that digital art had sprouted as early as the middle of the last century, but there was still a pattern of being copied at that time. It was not until the integration of NFT encryption authentication technology that the artist’s creation became “unique” and can be used by the artist. Trace, identify, display and even transfer transactions.

A set of data shows that after the introduction of NFT in the global auction market, Christie’s has received a total of nearly $150 million in revenue through the auction of NFT digital collections throughout 2021.

In the NFT-related art auction held by Christie’s, star Shawn Yue participated in the auction last September and auctioned his NFT collection. It is reported that Shawn Yue is a “big player” in the entertainment industry involved in the NFT field. He has 79 NFT works in his personal collection, and his Twitter avatar cost as much as 120 ETH, or about 2.75 million yuan to buy CryptoPunks.

Long before Jay Chou brought the fire phantom bear, the Bored Ape Yacht Club (Bored Ape Yacht Club, hereinafter collectively referred to as “BAYC”), an independent digital collectible of Ethereum composed of 10,000 ape head NFTs, was also very popular. NBA star Curry spent 55ETH to buy such a BAYC monkey NFT avatar.

For an avatar, the price is so high that the NFT digital collection is called the “rich man’s game” in an instant. In this regard, NFT collector Yu Meng denied it.

“It was very cheap at the earliest.” Yu Meng found that based on the traffic effect, more and more fans will follow the stylistic stars and like a certain IP image, which will bring “the increase in turnover rate, more diamond hands, and finally achieve consensus.” It is not difficult to see from some of the above-mentioned NFT projects that the status of the holder has become higher, so that the “floor price” of related NFT artworks has soared. 

An avatar can be sold for millions of yuan, “like a bright-purpose digital token.” Zhou Hongyi, founder of 360 Group, was interviewed by a reporter from Economic Observer earlier this year. When talking about digital art transactions based on NFT, “I’m also quite confused,” he said.

In the face of new concepts, Zhou Hongyi is not without research. What he understands is that in a highly advanced digital system such as the Metaverse, new forms such as social relationships, virtual identities, and NFT digital collectibles are included. But for artworks, he feels, “There are two reasons behind the value that cannot be ignored. One is scarcity, and the other is that it has resale value.”

Focusing on the current NFT digital collections, Zhou Hongyi found that many are not owned by one person alone, and can even be copied multiple times, which makes him doubt the business logic of NFT digital collections.

behind the bubble

“It’s being hyped now.” Zhang Ruxin, a practitioner in the digital art field based in Singapore, believes that there is no problem in the form of digital art transactions based on NFTs, but “there are some bubbles” at the moment.

She suggested that ordinary buyers still have many criteria to consider when bidding or purchasing some NFT artworks:whether they really like it, whether the artist has a future, how the art can be extended later, and whether there is a market prospect, etc.

Zhang Ruxin’s previous work mostly consisted of making brochures for advertisements and posters, or making short videos to serve various movies and games. Unlike traditional works of art, which can be exhibited in art museums or auctioned at auction houses, “digital art is an applied art that serves other industries.”

Until the emergence of NFT, Zhang Ruxin realized that digital art has changed, “becoming an independent art that can be auctioned and traded” . In addition, NFT artworks or avatars make people no longer bound by geographical limitations. “You don’t have to go to auction houses like Christie’s and Sotheby’s”. Anyone can conduct auctions or transactions, even in addition to designed artworks and collectibles , even text, music and other content can be NFT certified and sold as digital artwork.

For example, Twitter CEO Jack Dorsey marked his first tweet with the irreplaceable technology of NFT and auctioned it for more than $2.9 million; Tesla founder Elon Musk also announced that, To sell his tweets as NFTs, the top bid is over $1.1 million…

“NFT can make works or artworks become digital assets, and they can be bought and sold like real assets.” Today’s Zhang Ruxin mainly designs NFT avatars customized by customers according to their own images. She will draw with reference to the characteristics of relevant characters, and then upload the works to On the OpenSea platform, on-chain and transaction.

Although some NFT artworks have been fired to millions or even billions of dollars, Zhang Ruxin pointed out that only a few works can be fired for sky-high prices, and most NFT artworks are very cheap. A price to buy.”

She has always displayed and traded NFT digital artworks on an international trading platform known as “NFT leader” like OpenSea. “The transaction fee is very low.” According to her, the platform will show her such The seller charges a 2.5% transaction fee to profit.

Benefiting from the distributed digital ledger of NFT, Zhang Ruxin told reporters that the transaction status, ownership and validity of each work can be tracked. “When someone buys my works, I can still get a commission for the next transaction or each transaction.” In her opinion, according to her personal purchasing ability, she chooses NFT artworks at the right price to trade and collect. “It will be an increasingly popular way to trade art.”

It is not groundless, and one or two can be seen from the changes in the transaction scale of OpenSea.

According to the public recollections of OpenSea founders Devin Finzer and Alex Atela, the platform had only a few thousand active users and a transaction size of less than one million US dollars in the initial stage of the platform and even in the two years after it was launched. But a turnaround will come after February 2021.

There was a spring breeze in the NFT market, which caused a large number of users to flock to the OpenSea platform for transactions. The monthly activity jumped to 200,000, and it increased by 50 times in half a year. The historical sales in the past year exceeded 10 billion US dollars.

This change in operational data, which occurs on any Internet platform today, will undoubtedly be called a “miracle”. Of course, after the NFT project platform became famous overseas, it gradually said goodbye to the “empty” state in China.

First, the local NFT China official website was launched in May 2021, and then it attracted the fans of BAT manufacturers who integrated Internet genes and advanced technology.

Just over a month after the launch of NFT China, Alibaba released 4 Alipay payment code skin NFTs, followed by Tencent, which launched the Magic Core NFT trading platform and related NFT content works in August of that year. 

technology collision

Under the NFT boom, in addition to the surge of Internet giants, many platforms with related accumulation in the blockchain field have also emerged. In mid-January 2022, the Shutu Blockchain Research Institute launched the Taopai digital collection NFT platform.

In less than 10 days after Taopai was launched, Zhu Qiran, known as “China’s new NFT encryption artist”, sold 15 limited editions of “A Waman Makes A Plan” on the platform. Of course, the price is not ” Unattainable”, “1,000 yuan per piece.”

Zhu Qiran became the first NFT artist to hold a solo exhibition at Song Yang Art Museum in May last year. The reason why she became interested in NFT encryption art can be traced back to when she was studying in the United States, especially when she encountered an epidemic in 2020 and isolated online classes, she was exposed to this new form of art creation under the leadership of the professor.

Later, Zhu Qiran imitated a selfie photo of a popular “human high-quality male”, which was liked by friends after posting it on the Moments. “So I helped him mint the chain and let him collect it.”

Such a process enabled Zhu Qiran to discover the value of his works, and in addition to aesthetics and information, there was a new dimension of “connection”. The digital works linked based on NFT technology have become a connected medium at a certain moment, “When I cast it on the blockchain, and then collect it by the collector, a creation that may be forgotten in the past will be transformed into our common memory and will live on forever.”

In the process of collecting NFT artworks, “personal superficial understanding, this form is very cool.” Yang Ming feels that the NFT technology derived from the blockchain integrates its indivisible, irreplaceable and unique characteristics into the field of art , so that specific art assets can be confirmed and traced and verified through related technologies.

Today, NFT has become a hot word in the art circle. The crossover of this new technology has brought “a thought iteration in the field of art”. Talking about the value of NFT for artistic innovation and the new dimension that drives the industry into, Zhu Qiran affirmed it, but since the creation of digital artworks, she increasingly feels that encrypted art is only a small part of NFT applications.

“The development history of art goes from two-dimensional to three-dimensional. Our collection and appreciation of artworks are also affected by factors such as times, regions, cultures, technological development, and social consensus.” Zhu Qiran does not doubt that the realization of culture and art” “NFTization” is the gospel of all creators including her, and it is also an inevitable choice for collectors in the new era. “NFT confirms the right of art works to be on the chain, which ensures the originality of the works attributable to the author. The work is full of ritual and is permanently recorded in the Internet space.”

It is not difficult to imagine that “as long as the blockchain ecology exists forever, all works on the chain will also last forever.” Zhu Qiran knows that he benefits from NFT technology to re-upgrade his artistic creation, “NFT technology There is no good or bad.” She believes that the key point is how creators and consumers in the field of cultural design use and design new gameplay through technological innovation.

Yu Meng, who is an assistant to the chairman of a domestic investment company, has spent “all his spare time in contact with NFTs in the past six months” in addition to his job. Not only was he passionate about it, but after careful research, he found that the field “is not that mysterious and profound.”

In an interview with a reporter from the Economic Observer, Yu Meng said that NFT itself can well encapsulate digital content, and the packaged digital content can be confirmed without any certification agency. In addition, the liquidity of NFT itself It is very high, which makes the falsification of digital artworks “almost zero cost”.

In addition to the above-mentioned value of right confirmation and circulation, Yu Meng believes that the uploading of artworks on the chain does not change the essence of their artworks. The business logic behind it.”

A reality that cannot be ignored is that in the current market, most people buy NFT artworks not for art collection or fun appreciation. On the contrary, most of them regard collections as an investment in digital assets.

“All commercial gameplay is performed by the merchants themselves.” Even though the current field of NFT digital collections is hot, Yu Meng still “observed” some signs: the whitelist requirements of various NFT projects are becoming more and more demanding, and some The price of new projects is starting to be unreasonably high… Analogous to the financial market, he believes that the current NFT market is in a bull market, “a bull market means higher risks and costs.” He suggested that relevant NFT projects should “take profit”, and for For individual speculators, avoid taking too much risk.

In the process of being interviewed by reporters, Zhang Ruxin and Zhu Qiran both mentioned a word- new era. For digital art designers and creators like them, after the collision between NFT and the field of culture and art, the aesthetics changed. It has become more free and open, and choices have become richer and more diverse, especially the emergence of NFT artwork creation and collection, which has triggered a new era of artistic innovation.

It is undeniable that NFT has brought new elements to the digital world, allowing digital art and digital content to be efficiently confirmed, and even transferred and traded across platforms, but “not all artworks need to be marked with NFT”, Yu Meng has always I feel that those antique physical artworks that have undergone the baptism of time offline have details and meanings that cannot be replaced by electronic codes.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nfts-the-new-prey-of-digital-speculators/
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