The “bubble” behind the NFT avatar mania

Human beings always have an innate desire to collect things. However, what we grasp is entirely based on taste. In some cases, just look at the traditional collectibles market to see how big the industry is.

A series of new things and new models that are difficult to understand and accept in our minds have risen with the development of blockchain. The recent rise of NFT avatar projects is a typical case. From ordinary people’s thinking, these avatars are just pictures. How can they be worth so much money? Isn’t this hype?

The "bubble" behind the NFT avatar mania

NFT is given meaning by us

The full name of NFT in English is Non-Fungible Token, which is translated into Chinese as: non-homogeneous token. Every NFT, artwork, and virtual asset is unique and cannot be split and cannot be replaced with other resources. NFT represents the owner’s ownership of this asset, and does not prevent others from inspecting it or reading it. NFT just captures the information, records the holder’s information and marks it on the blockchain, so that the world knows this number. Who is the owner of the asset.

If the equivalent tokens of Bitcoin and Ether can be compared to banknotes, NFT is more like an original work of art that cannot be copied. The immutability of blockchain technology brings the best means and proof of authenticity to NFT token: if the things anchored behind these pictures can be arbitrarily tampered with, then these pictures will not have today’s value. The uniqueness of the NFT token attaches rare attributes to these pictures, making these pictures no longer just pictures but become “limited edition” digital items.

NFT avatar token recent inventory

Curry replaced his Twitter avatar with the image of a monkey, and this ordinary-looking avatar was actually bought for 55 Ethereum (about 180,000 US dollars). Seeing his own Idol changed his profile picture, the fans followed in Curry’s footsteps and changed their profile pictures to the “Bored Ape” series. In an instant, the fans turned into a monkey army, and Curry also sat down. The throne of a new generation of Huaguoshan Monkey King.

The "bubble" behind the NFT avatar mania

On July 31, the CryptoPunks series No. 5217 NFT was sold at a price of 2,250 ETH, which was approximately US$5.472 million. The last transaction of this NFT occurred 3 years ago, and the transaction price was only 2.5 ETH; the punk-style pixel avatar CryptoPunks #3100, the highest auction price in March of this year was 4200 ETH, which is about 75 million US dollars based on the Ethereum price at the time; cartoon The fat penguin image Pudgy Penguins#5687 sold for 100 ETH last week, which is converted to 300,000 US dollars at the current price of Ethereum.

According to the data website Cryptoslam, only CryptoPunks had a transaction volume of 48,988 ETH in the past 7 days, or about 121 million U.S. dollars, an increase of 1251.95% from the previous month. Its transaction volume is second only to Axie Infinity (the hottest blockchain game in the near future), and it is the second largest NFT project in the current market, ahead of NFT series such as NBA Top Shot.

Why is the NFT avatar hot?

Traceability block chain technology brings to NFTtoken historical value: encryption punk if not born in 2017 but was born today, it will not have such a historical position today.

What modern people pursue is maverick and uniqueness. No one wants to collide with other people’s shirts or portraits, let alone care about the ownership of a picture. The immutability of blockchain technology and the uniqueness of NFTtoken have attached rare attributes to these pictures, making these pictures no longer just pictures but become “limited edition” digital items.

Compared with DeFi projects, for the general public, the threshold for participating in this type of NFT is much lower. In DeFi, the general public has to figure out what liquid mining is and how to conduct liquid mining is an activity with considerable thresholds. To participate in such projects, you only need to buy a token on the official website or OpenSea , and then put your profile picture on your own Twitter or social tools. The intrinsic function and value of this token are very intuitively displayed, and this Value and experience can be quickly transmitted to the entire virtual space through Twitter or other social tools.

The biggest problem with the selected NFT market is that unless someone knows your virtual wallet address, no one can verify whether you really bought the artwork. In other words, I bought a picture frugally, and then, other people can not prove that I really bought it?

Why should I buy an NFT avatar? According to the previous understanding, a unique NFT avatar is a symbol of social status in the encrypted world, and is also regarded by some people as the identity of the future meta universe, “like owning a limited edition luxury bag or a Ferrari”. Now, there is a more direct reason to buy an NFT avatar: own it, and then wait for it to become rich.

The "bubble" behind the NFT avatar mania

NFT avatar key items

Avatar NFT originator CryptoPunks

CryptoPunks is regarded as one of the earliest and oldest NFT projects, and its appearance is even earlier than the previous Ethereum’s hottest NFT project CryptoKitties “crypto cat”.

CryptoPunks is the earliest image type (JEPG) NFT project built on Ethereum. It was created in 2017 by Larva Lab, a mobile game development company. CryptoPunks has issued a total of 10,000 NFTs, and each NFT represents a different “punk style” pixel avatar. The total number of CryptoPunks is fixed and no new NFT will be generated. In the early days of creation, users with Ethereum wallets can receive CryptoPunks avatars for free. Nowadays, users can only buy at secondary trading venues such as LarvaLabs and Opensen.

CryptoPunks pixel avatar images are generated by algorithms and are mainly divided into four categories: pixel figures, aliens, zombies and apes. All the avatars follow the punk style, and each has a unique style, such as the gender of men and women, whether they wear a hat, the style of the necklace is also different, the hairstyle is different, and the skin color is also different. On the CryptoPunks website, each punk pixel avatar has its own information display, showing their attribute characteristics, ownership and sale status. Because CryptoPunks pixel avatar is the earliest encrypted art picture NFT, coupled with the encryption and scarcity brought by blockchain technology, it has the same collection value as an artwork.

TheBoredApeYachtClub

Each Bored Ape monkey head NFT has unique characteristics. The team has shaped the different facial expressions, headdresses, clothing and other characteristics of the monkeys, and generated a unique head portrait on the chain. The Bored Ape monkey head is a status symbol. When you buy Bored Ape NFT, you are not only buying a digital cultural and creative product, you can also get the qualification to enter the BAYC club. The Bored Ape NFT you own is your digital identity. Enjoy the benefits and products that the club has.

PudgyPenguins

Pudgy Penguins released a total of 8888 cartoon fat penguin heads NFTs of various shapes. Some penguins wear hats or glasses, some wear a T-shirt or a scarf. Pudgy Penguins NFT is loved by many Twitter users because of its cute appearance. Among them, Reddit co-founder lexis Ohanian tweeted his Pudgy Penguins, and the New York Times reported on this incident.

Summarize

Even if an NFT will be used as an avatar by many people without ownership, there is an unwritten rule in the CryptoPunks pixel avatar circle: “It is shameful to set a CryptoPunk that does not belong to you as your avatar.” Therefore, NFT has its unique advantages in copyright protection. Through the blockchain, not only the transactions of artworks are faster and more convenient, but the cost of identification is also greatly reduced, making the transactions of artworks more secure.

NFT also gives art more possibilities. After the emergence of NFT, programmable digital art has also received attention, and there are even new explorations in the ownership of artworks and cultural products. In 2020, the rare monetary policy of the century and the new crown epidemic have accelerated the development of the virtual world and asset ecology. More large companies will enter the market in the future, and we look forward to a more prosperous NFT market in the future!

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-bubble-behind-the-nft-avatar-mania/
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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